Bermuda

In Bermuda, cryptocurrencies are legally classified as "digital assets" under the Digital Asset Business Act 2018. The country has a regulated environment for digital assets, characterized by a dedicated legal framework that requires businesses dealing with crypto to obtain licenses from the Bermuda Monetary Authority (BMA) and adhere to comprehensive rules on anti-money laundering, cybersecurity, and client protection. The Bermuda Monetary Authority (BMA) is responsible for regulating digital asset businesses under the Digital Asset Business Act 2018. However, Bermuda does not have income or capital gains taxes, so there is no specific crypto tax authority. Tax administration generally falls under the Ministry of Finance. For individuals, Bermuda applies a zero-tax regime to cryptocurrency activities. There is no income tax, capital gains tax, or VAT on buying, selling, or swapping crypto. All gains from digital assets are tax-free, irrespective of how long the assets are held. Corporate tax of 15% will apply from 2025, but only to multinational enterprises with annual revenue exceeding €750 million. Most companies, and all individuals, remain untaxed. Specific crypto activities such as staking, mining, Decentralized Finance (DeFi) operations, and Non-Fungible Tokens (NFTs) are not subject to tax in Bermuda. Converting crypto to fiat currency and engaging in crypto-to-crypto swaps are also not considered taxable events. Looking ahead, several regulatory updates are pending. A new Payment Service Provider framework is set to be implemented in April 2025, while the Digital Asset Business (Custody of Client Assets) Rules will become effective in 2025. Bermuda also plans to implement the OECD's Crypto-Asset Reporting Framework (CARF) between 2026 and 2027, which will require crypto service providers to report user transactions.