BMA consults on digital asset custody

  • Document prepared: the BMA is seeking consultation feedback on its draft Code Digital Asset Custody Code of Practice

    Document prepared: the BMA is seeking consultation feedback on its draft Code Digital Asset Custody Code of Practice


The Bermuda Monetary Authority has released a draft code of practice for digital asset custody for consultation that prescribes measures to ensure a high level of care when safeguarding client’s assets.

The consultation period is for one month.

The Digital Asset Business Act 2018 makes provision for digital asset business licences and gives power to the BMA to issue codes of practice to ensure the business is conducted in a prudent manner. The code seeks to protect the public and to clarify the Authority’s expectations in terms of the custody of digital assets. The code is a detailed document covering both technology and business controls in specific areas like hot and cold storage, key generation, transaction handling, and incident reporting.

Moad Fahmi, senior advisor, (supervision) financial technology at the BMA, said: “The code complements the extensive body of rules for Digital Asset Businesses published by the BMA. We view custody as an important part of a healthy digital asset ecosystem — one that will encourage quality players to contribute positively to our financial system. We remind stakeholders that the framework was built with the aim of making sure that the core objectives of financial regulation are respected, that is: protecting consumers, ensuring stability of our institutions and maintaining integrity and confidence in financial markets — with a focus on maintaining the highest standards of AML/ATF.”

Craig Swan, managing director, supervision (insurance) at the BMA, said: “This technical publication highlights the quality of the work done by our team at the BMA to build on our cybersecurity acumen as we move to become regulatory leaders in digital assets. It is aligned with the BMA’s 2018 Business Plan objectives of being proactive, comprehensive and forward-looking.”

Comments on the draft code should be sent to the BMA, addressed to innovate@bma.bm, and arrive no later than January 18.

Click on Related Media to read the draft code of practice

You must be registered or signed-in to post comment or to vote.

Published Dec 18, 2018 at 1:24 pm (Updated Dec 18, 2018 at 1:24 pm)

BMA consults on digital asset custody

What you
Need to
Know
1. For a smooth experience with our commenting system we recommend that you use Internet Explorer 10 or higher, Firefox or Chrome Browsers. Additionally please clear both your browser's cache and cookies - How do I clear my cache and cookies?
2. Please respect the use of this community forum and its users.
3. Any poster that insults, threatens or verbally abuses another member, uses defamatory language, or deliberately disrupts discussions will be banned.
4. Users who violate the Terms of Service or any commenting rules will be banned.
5. Please stay on topic. "Trolling" to incite emotional responses and disrupt conversations will be deleted.
6. To understand further what is and isn't allowed and the actions we may take, please read our Terms of Service
7. To report breaches of the Terms of Service use the flag icon

  • Take Our Poll

    • "Your new year's resolutions for 2019"
    • Quit smoking
    • 4%
    • Quit drinking/drink in moderation
    • 7%
    • Do not drink and drive
    • 2%
    • Lose weight
    • 40%
    • Stop procrastinating
    • 22%
    • Drive with greater care
    • 2%
    • Other
    • 22%
    • Total Votes: 2607
    • Poll Archive

    Today's Obituaries

    eMoo Posts