Lex Mundi - Global Token Sales Guide

1. What, if any, are the regulations applicable to token sales, aka initial coin offerings (“ICOs”).

The Bermuda Government has introduced legislation to govern ICOs in and from within Bermuda. The Companies and Limited Liability Company (Initial Coin Offering) Amendment Act 2018 (ICO Act) was recently passed by both the House of Assembly and the Senate, and has since received Royal Assent.  All that remains for the ICO Act to become effective is for the Minister to publish a notice in the Gazette.  This is expected to occur simultaneously with ancillary regulations that are expected to be issued during July 2018.

The Bermuda Government has also introduced the Digital Asset Business Act (DABA) which is intended to establish a licensing and governance regime for any person providing services to the public in the digital asset sector. Whilst DABA does not require an ICO to be licensed in itself, it does require those service providers that are integral to the