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ARTICLE · 03 DECEMBER 2025

Understanding Bermuda's Proposed Payment Services Act: Licensing Framework And Next Steps

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A proposed new Payment Services Act will replace the Money Service Business Act 2016, introducing a tiered risk-based licensing framework and three activity categories: digital facility providers...

BermudaFinance and Banking
Leonie Tear
Leonie Tear
Natalie Neto
Natalie Neto
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Key Takeaways

  • A proposed new Payment Services Act will replace the Money Service Business Act 2016, introducing a tiered risk-based licensing framework and three activity categories: digital facility providers, payment-handling providers and payment technology providers.
  • Stablecoin issuers can choose licensing under the PSA or DABA.
  • The BMA plans to launch an AI Payments Hub for testing AI-driven payment models and introduce new licence classes for wholesale and cross-border payment services.

Introduction

On 29 August 2025, the Bermuda Monetary Authority (BMA) issued a Consultation Paper (CP) regarding a new proposed Payment Services Act (PSA). The PSA is proposed to replace the Money Service Business Act 2016 and will introduce a tiered, risk-based licensing framework and three distinct activity categories: Digital Facility Providers (DFPs), Payment-Handling Providers (PHPs) and Payment Technology Providers (PTPs).

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