January 30, 2013 at 5:54 p.m.
The decision was announced on Friday by the Bermuda Cricket Board.
Hemp, 41, has told the BCB he is still keen to represent the island as a player and help mentor future captains.
Hemp, who made his Bermuda debut in November 2006 and has been captain since August 2009, said:"It has been a privilege and an honour for me to have had the opportunity to captain the Bermuda national team and has without doubt been one of the highlights of my playing career.
"I also would on a personal level like to say a special thank you to all the coaches and backroom staff during my time in this role. All have demonstrated professionalism and a complete desire to move cricket forward at the National Squad Level.
"As I have done from the outset, I am fully committed to providing Bermuda cricket support in whatever fashion, particularly now as we have multiple global opportunities in tournaments in our immediate future.
"I will continue to be fully supportive of the BCB and its members, both of its development and its high-performance program. If I have a chance to assist in a mentoring role any player will receive my full assistance.
"I still have great passion to play for Bermuda and be part of a team, which currently has many young players, who can aspire to a return to the top level of Associate cricket in the near future."
BCB President Lloyd Fray described Hemp as an outstanding leader and role model for young cricketers.
He said: "This decision was made after extensive reviews and discussion involving the National Coach, the CEO and David himself.
"The high-performance program of the BCB is a vital part of the BCB's activities and is always in the process of continual review and performance improvement.
"The BCB is well aware of the importance of succession planning and it was unanimously agreed that the timing was right for David to allow the next generation of leaders to have an opportunity to captain the national side."
Fray added: "David has admirably displayed complete selflessness in his discussions with us about the team's future.
"David is fully committed, as the BCB is, to regaining a place in the top tier of international cricket and understands the importance to the country of the next 18 months of both 50 over and T20 cricket."[[In-content Ad]]
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