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The financial regulator of Bermuda has issued a draft regulation for crypto-custody services, according to an official press release published Tuesday, December 18.
The draft regulatory document of the Birmuda Monetary Authority (BMA), entitled "Code of good practice for the custody of digital assets", aims to clarify the position of the regulator on crypto-custody services in Bermuda and to protect the assets of customers.
The document provides a detailed regulatory basis for the offering of crypto-cession services, including business and technology management issues, such as transaction management, incident reporting, key generation and archiving. hot and cold.
With the aim of providing a high level of protection for encrypted customers, the BMA has suggested that a Digital Asset Business (DAB) must ensure that "all activities belonging to customers are kept segregated" from their activities.
According to the document, a DAB is authorized to put the client's assets in a trust with a qualified custodian, or use compensation insurance and take other measures to ensure the return of the client's assets in the event that a DAB is suspended or disqualified, or has losses due to theft.
Moad Fahmi, senior consultant for BMA's financial technology, said that the authority takes seriously the problem of supporting an "ecosystem of healthy digital goods" in order to encourage the involvement of "quality actors", who will have a positive effect on the entire financial system.
The Bermuda monetary authority is an integrated regulator of the Bermuda financial sector, not a central bank, which also acts as the issuer of the Bermuda national currency.
In April 2018, the BMA published a consultation document in order to receive feedback from the public on the regulation of crypto-related services, as well as on the relevant regulatory measures concerning the fight against money laundering (LMA). In the document, the watchdog revealed his plans to monitor a series of activities related to the crypt in order to prepare an official picture on the crypt.
In October, the Bermuda government granted the first license for an initial coin offer project (ICO) under the new regulatory framework for cryptography and blockchain, introduced in July 2018.
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