Bermuda Unveils Digital Certification Regime

by Mike Godfrey, Tax-News.com, New York

14 February 2002

Introducing new Government regulations on how companies issue digital certificates for online transactions, Bermudian Telecommunications Minister Renee Webb said they: “represent a significant step forward in the development of e-business in Bermuda. They demonstrate to business internationally that we are a serious jurisdiction for sophisticated e-business”. Dublin and Hong Kong have already put in place their version of the Certification Services Provider regulations, which will mean that anyone with the certification has met fairly stringent criteria to be allowed to produce digital certificates.

The Certification Service Providers (Relevant Criteria and Security Guidelines) Regulations 2002 follow the Electronic Transactions Act (ETA) 1999, and deal with the formation of electronic contracts and the validity of digital signatures. The voluntary CSP scheme allows certificate authorities to apply for Government recognition under the ETA.

Quo Vadis, a Bermuda-based digital certificate provider company, is the first company to seek CSP approval. Stephen Davidson, vice-president of marketing for Quo Vadis said: “While the ETA recognises that electronic signatures are legally binding, users may have to prove that the signature is valid unless it was created using an “accredited digital certificate”. Signatures from accredited certificates are automatically accepted as valid and binding.”

Mr. Davidson added: “Quo Vadis is excited to be the first CSP to be accredited by the Bermuda Government. We view this as an important step in the development of e-government and the legally binding use of electronic transactions,” he said.

Ms Webb said: “With the increasing important role that certificates are playing in e-business it is clearly vital that the businesses which issue certificates are competent, honest and technically up to the mark. It is for that reason I decided a scheme to assess their competence was required. The criteria used have been developed with businesses on the Island, but they also have been drawn up to be compatible with those used in other International schemes in both North America and Europe. I firmly believe this will be the first offshore CSP scheme to become recognised by the European Union.”

The Telecommunications Ministry makes a charge of $10,000 per application for a CSP approval, in order to cover the costs of expert investigation of each applicant.

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