The Bahamas Securities Fee has introduced the passage of recent crypto laws almost two years after FTX’s collapse.
The Digital Property and Registered Exchanges Act, 2024 (DARE 2024) goals to supply regulatory readability for the nation’s digital belongings trade and re-solidify its place as a pro-crypto hub.
Christina Rolle, the chief director of the Securities Fee, mentioned DARE 2024 gives a brand new normal in digital asset regulation and is a testomony to the monetary regulator’s dedication to strong threat administration. She added:
“We’ve got created a framework that not solely focuses on investor safety, but in addition encourages accountable innovation, positioning The Bahamas on the forefront of digital asset regulation globally.”
The Bahamas attracted world scrutiny following the shock collapse of the FTX trade, which was headquartered within the nation, in 2022. Earlier than its failure, the agency was valued at $32 billion, and its now imprisoned founder and CEO Sam Bankman-Fried, additionally based mostly within the Bahamas, was seen because the golden boy of a thriving trade.
On the time, the Caribbean nation confronted elevated questions concerning the efficiency of its crypto rules and a decline within the variety of crypto corporations increasing to its area.
DARE 2024
DARE 2024 broadens the scope of regulated digital asset actions to incorporate advisory and administration providers. It additionally regulates digital asset derivatives, staking providers, and different actions because the trade evolves.
The legislation introduces stricter necessities for digital asset exchanges to make sure strong investor and client safety. It additionally establishes a complete custody framework for digital asset custody and custodial pockets providers.
DARE 2024 gives clear definitions and pointers for staking providers and stablecoins. The legislation particulars the registration course of, asset reserve insurance policies, and custody administration for stablecoins.
Moreover, the legislation mandates well timed disclosure and monetary reporting. It addresses conflicts of curiosity and relationships with related third events and categorizes NFTs as monetary or client belongings.
Notably, DARE 2024 prohibits the issuance of algorithmic stablecoins and privateness tokens and imposes sure restrictions on Proof-of-Work (PoW) token mining actions within the nation.
