Bermuda’s eight-year head start in regulating digital assets is giving the island a competitive edge as Europe and the United States move to catch up with new crypto legislation, according to Carey Olsen partner Steven Rees Davies.

Mr Rees Davies, who helped shape the island’s Digital Asset Business Act, said in an interview with HashPoint Advisory that Bermuda’s framework is attracting blockchain projects that want regulatory clarity and speed to market.

“With global credibility, the Bermuda Monetary Authority can manage sophisticated applications within a matter of months, not years,” he said. “That speed to market mixed with credible regulation is very attractive to those with legitimate and pre-funded projects.”

The DABA regime, introduced in 2018, remains one of the world’s only fully comprehensive digital asset frameworks, covering everything from tokenisation and stablecoins to exchanges, custodial services and lending platforms.

He said Bermuda’s framework stands apart from newer regimes, such as the European Union’s Markets in Crypto-Assets regulation, which some in the industry consider overly restrictive.

“MiCA brings clarity and access to the EU market, but commentators have publicly criticised it for being too restrictive, especially for stablecoins,” he said. “Bermuda offers more flexibility, allowing reserve assets to be held globally, focusing on risk and transparency rather than geography.”

Mr Rees Davies also pointed to Bermuda’s first tokenised bond as evidence of the island’s readiness for “serious capital markets innovation”, showing how structured, governed digital debt can thrive under Bermuda law.

Bermuda’s tiered licensing structure — with Class T, M and F licences — allows companies to test, launch and scale within a regulated environment.

“Bermuda’s tiered licensing regime provides a flexible and scalable framework that supports both institutional-grade businesses and early-stage innovators,” Mr Rees Davies explained.

David Burt, the Premier, who embarked on a European tour this month to promote Bermuda’s financial services industry, noted that Bermuda’s reputation has shifted markedly in recent years as “we’ve done all the work that’s necessary”, he said.

On digital assets, he said Bermuda continued to set the pace globally. “Digital asset frameworks globally have basically copied from what it is that we’ve done here,” Mr Burt said.

The Premier added that Bermuda has the highest number of licensed digital asset companies in the world.