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Bermuda Blockchain and Digital Assets

Bermuda has a long history of being a leading jurisdiction that is quick to meet the changing needs of business. From captive insurance to alternative investments, the island has welcomed innovation, with Government and the private sector successfully working together to foster thriving but well-regulated new markets. Blockchain and digital assets are no exception. The Bermuda Government is focused on developing a business-friendly environment for this new industry, with an appropriate regulatory framework for initial coin offerings (“ICOs”), a government-regulated digital currency exchange and e-residency. A key feature of this process has been a high degree of cooperation and consultation between the private sector and regulators, who welcome direct feedback from industry players and their service providers.

Benefits of Incorporating in Bermuda

Bermuda is widely respected as the premier offshore financial centre. It meets or exceeds global standards of compliance and regulation, and investors are comfortable with its reputation for quality and integrity.

In addition to embracing business innovation, the island offers the following advantages:

  • Tax-neutral status, with no income, profit or capital gains taxes
  • Legal and judicial systems based on English common law
  • Sensible, effective and innovative regulatory environment
  • A deep pool of business and intellectual capital
  • Convenient location between North America and Europe
  • Sophisticated infrastructure

Legal Services for Bermuda Blockchain Companies

As Bermuda’s leading offshore corporate practice, Conyers has the expertise to advise clients of all sizes who are looking to incorporate on the island for the purposes of developing their business using blockchain technology or through issuing digital currencies or tokens.

Bermuda Companies Act and Limited Liability Company Act

The principal legislation governing the formation and operation of Bermuda companies limited by shares is the Companies Act 1981, which is regularly amended to keep pace with international commercial developments. The Limited Liability Company Act 2016 provides for the formation and operation of limited liability companies (“LLCs”), a hybrid vehicle modelled on the Delaware LLC, which has many of the features of a partnership with separate legal personality, but within a corporate entity.

Legal and Corporate Services Expertise

Our dedicated team of attorneys can assist with:

  • navigating the legal, regulatory and commercial issues involved in setting up a Bermuda blockchain or digital asset company either as a company limited by shares or as an LLC;
  • advising on token sales and ICOs;
  • providing registered office, corporate director and secretarial services, as well as specialised company management services.

Bermuda Counsel for Digital Asset Transactions

  • Conyers advised on Bermuda’s first-ever digital currency launch in October 2017, acting in connection with the formation of Unikrn Bermuda Ltd and its Unikrn token sale and cryptocurrency platform. The e-sports startup raised roughly US$31 million in its digital token sale, with its UnikoinGold surpassing every other e-sports and gaming token sale to date. For the sale, Unikrn used smart contracts deployed via Ethereum to trade Ether, the cryptocurrency used on the Ethereum blockchain platform.
  • In January 2018, Conyers advised on the formation of iCash Ltd., a Bermuda company, and the creation of its new Ethereum blockchain-based token, iCash. iCash is intended to be used by purchasers to access FaceOff, a peer-to-peer social sports and gaming site.

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