The Government has introduced legislation in the House of Assembly that would create a new limited duration test licence under Bermuda’s digital asset business regime.

The Digital Asset Business Amendment Bill 2020, if passed, would create a ‘Class T’ licence.

An explanatory memorandum attached to the Bill provides that such licensees will have an opportunity for a limited period – likely not more than a year, it says – to carry out pilot or beta testing in relation to a digital asset business activity.

Licensees will be under the supervision and direction of the Bermuda Monetary Authority.

Class T licensees will not be required to maintain a head office in Bermuda, and nor will the licensee’s senior representative be required to maintain an office on the island.

A Class T licensee will be required to publish on its website, for the duration of its licensing period, that it holds such a license.

Class T licensees will be required to hold minimum net assets of $10,000, or such amount as the BMA “may direct, taking into consideration the nature, size and complexity of the licensed undertaking”, the Bill said.

The fee payable for a Class T licence is to be $1,000.

The House of Assembly next sits on November 27.