Bermuda
Answer ... Bermuda has introduced an all-encompassing definition of ‘digital asset’ that includes cryptocurrencies and virtual currencies. The full definition is anything that:
- exists in binary format;
- comes with the right to use it; and
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includes a digital representation of value that:
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- is used as a medium of exchange, unit of account or store of value;
- is not legal tender, whether or not denominated in legal tender;
- is intended to represent assets such as debt or equity in the promoter;
- is otherwise intended to represent any assets or rights associated with such assets; or
- is intended to provide access to an application or service or product by means of distributed ledger technology.
The term does not include:
- a transaction in which a person grants value as part of an affinity or rewards programme, which value cannot be taken from or exchanged with the person for legal tender, bank credit or any digital asset; or
- a digital representation of value issued by or on behalf of the publisher and used within an online game, game platform, or family of games sold by the same publisher or offered on the same game platform.
The Digital Asset Business Framework does not differentiate between utility tokens, non-fungible tokens, stablecoins, securities token or cryptocurrencies from the perspective of whether something is a digital asset. However, it does apply the principle of proportionality when assessing each type of digital asset as part of an application by a digital asset business to conduct either a digital asset issuance or digital asset business activities.
There are no decided cases in the Bermuda Supreme Court or Court of Appeal regarding digital assets. The Bermuda Courts will ordinarily be guided by pronouncements of the UK Supreme Court (formerly the House of Lords) on common law issues which are not materially impacted by local considerations, even though such decisions of the UK Supreme Court are not strictly binding. However, decisions of the Judicial Committee of the Privy Council are binding on the Bermudian courts, irrespective of the jurisdiction from which the appeal emanates, and any conflict between two Privy Council decisions should ordinarily be resolved in favour of the later decision.
Similarly, where the provisions of any act of the Bermuda legislature are derived from prior enacted statutes in England and Wales, or another Commonwealth jurisdiction, the Bermuda courts will generally regard pronouncements of the courts in the relevant jurisdiction from which the Bermuda statute was derived as persuasive authority as to the corresponding position under Bermuda law.
Bermuda
Answer ... The equivalent term under Bermuda law is a ‘digital asset issuance’, which under the Digital Asset Issuance Act (DAIA) means “an offer to the public to acquire digital assets or to enter into an agreement to acquire digital assets at a future date”.
Bermuda
Answer ... Stablecoins constitute digital assets in Bermuda and are therefore regulated under the Digital Asset Business Act and the DAIA.