The Bermuda Monetary Authority has been given new powers under two pieces of legislation passed in the House of Assembly yesterday.

The Digital Asset Business Amendment Act 2023 will give the authority greater oversight over service providers and also create a new class of digital asset business

The amended legislation adds the new digital asset business activities of digital asset lending, or digital asset repurchase transactions, service provider as activities for which the BMA may grant a licence under the Digital Asset Business Act 2018.

It sets out definitions of the new digital asset business activities and also imposes an obligation on a Class T licensee to maintain a record of both its client and its own transactions at its principal place of business for a period of not less than five years beginning from the date the transaction occurred.

Giving the Bill its second reading, David Burt, the Premier and Minister of Finance, said that Bermuda was now well placed as an international hub for the industry.

He added that the legislation, which was drafted after lengthy consultation with industry stakeholders, would tighten regulations and therefore strengthen Bermuda’s reputation as a world leader in the industry.

MPs also passed the Insurance Amendment Act 2023 during yesterday’s session, which gives the BMA the authority to require commercial insurers to develop a recovery plan.

An insurer or insurance group required to prepare a recovery plan must provide to the BMA such information and documentation for that plan or the preparation thereof as the BMA deems appropriate – and must maintain, at its head office in Bermuda, copies of the most recent recovery plan in both electronic and printed format.

Mr Burt said: “This government recognises that one of its key strengths is its robust regulatory regime.”