New rules for digital identity service providers
Most digital identity service providers in Bermuda will need to comply with a new industry framework, regardless of the specific services or activities they perform.
The BMA confirmed this in a letter sent to stakeholders on Tuesday after a period of industry consultation.
The exception will be those operating solely as an outsourced service provider to a licensed provider.
“We are committed to fostering an effective and forward-looking regulatory environment that aligns with international best practices while supporting innovation and security in digital identity service,” the organisation said.
Further details regarding licensable activities will be set out in an illustrative draft Bill and subject to appropriate consultation.
During the consultation, the BMA asked if outsourcing should be permitted within the Disp framework and whether service providers should also be subject to licensing.
“Stakeholders were generally supportive of allowing outsourcing arrangements within the Disp framework,” the BMA reported. However, they emphasised that licensed Disps must retain full responsibility for overseeing any outsourced functions and would be accountable for complying with the framework’s requirements.
The BMA said such requirements would ensure accountability and regulatory compliance while allowing Disps to leverage their specialised expertise.
“This approach aligns with existing BMA regulatory frameworks and outsourcing practices and responsibilities,” the organisation said.
• For a full copy of the BMA Disp consultation document, see Related Media
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