The Bahamas Securities Fee has introduced the passage of recent crypto laws practically 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 property business and re-solidify its place as a pro-crypto hub.
Christina Rolle, the manager director of the Securities Fee, stated DARE 2024 supplies a brand new customary in digital asset regulation and is a testomony to the monetary regulator’s dedication to strong danger administration. She added:
“We’ve got created a framework that not solely focuses on investor safety, but additionally 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 change, 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 business.
On the time, the Caribbean nation confronted elevated questions concerning the efficiency of its crypto laws 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 companies. It additionally regulates digital asset derivatives, staking companies, and different actions because the business evolves.
The legislation introduces stricter necessities for digital asset exchanges to make sure strong investor and shopper safety. It additionally establishes a complete custody framework for digital asset custody and custodial pockets companies.
DARE 2024 supplies clear definitions and pointers for staking companies 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 linked third events and categorizes NFTs as monetary or shopper property.
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.