From Family Offices to Crypto: Why Bermuda is the smart choice in uncertain times

Date: 04 Jun 2025

Karen Jones

Bermuda’s Vision: Stability meets smart regulation.

Regulatory Clarity & Licensing Pathways

Bermuda has positioned itself as a forward-thinking, stable, and well-regulated international financial centre by proactively embracing emerging trends in global finance. Recognizing the transformational role of digital assets, Bermuda enacted the Digital Asset Business Act (DABA) in 2018, creating a scalable regulatory framework that has attracted major players in the industry. Additionally, the implementation of a 15% corporate income tax (CIT) for large multinational enterprises, effective January 1, 2025, demonstrates Bermuda’s commitment to transparency and international compliance. Coupled with flexible residency options and investor-friendly policies, Bermuda is not only adapting to shifting global dynamics but is also thriving in an era marked by uncertainty.

A Client’s Perspective

Joshua Rubenstein, Partner, National Chair, Private Wealth, Katten based in New York who uses Bermuda for trusts commented. “Bermuda is one of my favourite trust jurisdictions. It offers modern and flexible trust legislation without being so aggressive that it calls negative attention to itself with the regulators.  Sort of the Aesop’s fable where slow and steady wins the race.  From my standpoint, clients are best protected in a jurisdiction of uncompromised integrity and world class talent such as Bermuda.”

Kendaree Burgess, Managing Director at the Bermuda Business Development Agency (BDA) recently represented Bermuda at the annual Citywealth Forum in London to speak to global wealth managers and advisors. She joined a panel with representatives from Jersey, Channel Islands, Turks & Caicos, Cyprus and Singapore.

Digital Assets Done Right: The DABA advantage

Burgess said on the day of the innovations locally. “Bermuda recognised early on that digital assets weren’t just a passing trend, but a meaningful shift in global finance. In 2018, we introduced the Digital Asset Business Act (DABA), a tiered, scalable regime with full AML and ATF compliance built in. The goal was to create clarity and confidence for both companies and investors. That regulatory certainty has attracted major players to Bermuda, including Circle, Coinbase, Kraken, and XBTO Global, names that are leading the future of this space.”

Burgess continued saying, “One of our biggest strengths is that Bermuda has a single, integrated regulator, the Bermuda Monetary Authority (BMA), which oversees everything from trusts and funds to insurance, reinsurance, and digital assets. That means family offices and institutional investors get consistency across the board.”  Citywealth can confirm that this is something much lauded by professionals sending clients to IFC’s.

Banking, Substance & Operating Requirements

Corporate tax with global alignment and local insight

“In December 2023,” adds Burgess, “Bermuda passed legislation to implement a 15% corporate income tax, effective from 1 January 2025. It applies only to Bermuda-based businesses that are part of multinational enterprise (MNE) groups with annual global revenue of EUR 750 million or more. The threshold is high, and the government is also developing a programme for qualified refundable tax credits. The early, transparent rollout has given companies a feeling of certainty and stability. It’s been a case of first-mover advantage.”

Bermuda residency explained: options for investors and global families

Burgess continues, “Bermuda also offers clear residency pathways. The Economic Investment Residential Certificate (EIRC) provides long-term residency for individuals who invest at least $2.5 million into the island, whether in infrastructure, local businesses or philanthropic initiatives. It’s not a golden visa, it’s a long-term, values-driven commitment to Bermuda. That’s especially relevant now, given the changes to the UK Non-Dom regime for those not ready to commit long term, there are flexible permits that allow people to live in Bermuda for up to five years, a “try-before-you-buy” option.”

Why Bermuda stands apart

Her final comment. “Bermuda isn’t for everyone and that’s intentional. We’re not a mass-market jurisdiction. We’re a jurisdiction that values strong regulation, compliance, and integrity. That’s why our jurisdiction, and our regulator, continue to earn global respect.” 

Trusts, Migration, and the Power of Section 47

Randall Krebs, Director and Legal Counsel at Harbour International Trust Company also based in Bermuda shares his view on developments locally. “We are seeing some interesting trends emerging because of the global economic and political instability. ‘May you live in interesting times’ is a phrase commonly associated with a Chinese curse, but Bermudian financial professionals might rightly view this phrase as a blessing.  International financial centres thrive during periods of chaos, conflict, and instability.”

Growing Demand for Asset Protection and Family Offices

Krebs says, “We are living in interesting times, and Bermuda is a beacon in the tempest of tax, economic and political turmoil.  This is evident in some recent trends which include the new rules for the taxation of non-UK domiciled individuals leading to a corresponding relocation or creation of family offices in Bermuda. In addition,” Krebs continues, “Existing trusts may no longer be fit for purpose and Bermuda has seen an increase in the migration of trusts to Bermuda to use section. 47 of the Trustee Act 1975 to amend administrative provisions of trusts without needing the consent of all beneficiaries.”

“US tariffs have also generated worldwide economic instability,” explains Krebs, “and created increased interest in asset preservation trusts designed to take advantage of Bermuda’s state-of-the-art firewall legislation. US political rhetoric and isolationist stance has reduced the attractiveness of US structures for Asian, Latin American and Canadian families, so we are seeing families from these regions select Bermuda based structures over those created in the United States.”

Krebs adds a final point, “Investment returns have suffered because of tariffs, reciprocal tariffs and market uncertainty and so families want to reduce the costs of their international businesses and structures.  To help with this, the Bermuda Government has committed to using revenue from the new CIT to reduce the cost of doing business in Bermuda.”

Family Office Routes & Governance

Bermuda’s strategic edge in a world of uncertainty

In a world defined by rapid change and uncertainty, Bermuda has emerged as a beacon of stability, compliance, and innovation. By fostering a transparent and investor-friendly environment through initiatives like the DABA Act, the new CIT regime, and progressive residency programs, Bermuda continues to attract high-quality investors and global families seeking a reliable jurisdiction. As international financial trends evolve, Bermuda remains not only responsive but strategically positioned to lead. For those seeking opportunity amid disruption, Bermuda offers a compelling and secure platform for long-term growth and success.

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