Streamlining Bermuda’s regulation of digital asset business won bipartisan support in the House of Assembly yesterday — with a warning from the opposition leader that Bermuda should remain vigilant.

Debate over the Companies Amendment Act 2023 was opened by Kim Wilson, the acting finance minister in the absence of David Burt, who was overseas to attend the coronation of King Charles III.

The new Act amends the 1981 companies legislation to permit an exempted company licensed under the 2018 Digital Asset Business Act to conduct business without the requirement for additional licensing in a separate section of the 1981 Act.

The moves frees companies cutting their share capital from the requirement to publish details of the proposed action.

Additionally, an exempted limited liability company approved under the Digital Asset Business Act 2018 to carry on business in Bermuda will do so without having to be licensed under the Limited Liability Company Act 2016.

Ms Wilson said the move came from a request by the industry to streamline regulations, with advice from the Bermuda Business Development Agency.

Cole Simons, the Leader of the Opposition, cited the example of the “implosion” of the Bahamas-based cryptocurrency exchange giant FTX in Bermuda’s need for caution in moving ahead

“Do we want to sully our reputation?” Mr Simons asked. “And let’s not forget Arbitrade.”

Scott Pearman, of the One Bermuda Alliance, noted the amendments sought to “loosen the red tape”.

“I believe we are supportive of the Bill, subject to the observation I am sure both sides share that we must do better to recognise there are bad actors.”

Jason Hayward, the labour and economy minister, hailed the move as a “significant step forward for our technology ecosystem” while Water Roban, the Deputy Premier, suggested Mr Simons had been “over the top” in his concerns.

Both he and Ms Wilson emphasised the independent regulation of the Bermuda Monetary Authority in managing the industry.

Mr Simons queried whether the island was “removing a check and balance”, but Ms Wilson assured MPs that the business was “still scrutinised by the BMA”.

The amendments were approved.