#Nassau, April 4, 2019 – Bahamas – Draft legislation has been put forward to give
The Bahamas a clear competitive advantage with respect to digital asset
solutions as financial technologies continue to drive growth in the financial
services sector.
The Digital Assets and Registered Exchanges
Bill, 2019 (DARE), which was developed by the Securities Commission of The
Bahamas (SCB), provides solutions for digital asset applications and creates a
proper regulatory framework for The Bahamas’ crypto market.
“Disruptions caused by the digitization of the economy are
leading to a new wave of regulatory reform. As countries around the world
innovate new ways to safeguard against the erosion of their tax base, these
developments will undoubtedly affect us here in The Bahamas. With the DARE
legislation, we are looking to the future, anticipating and preparing for the
changes on the horizon, forming coalitions to influence the nature of change,” said Deputy Prime Minister and Minister
of Finance Peter Turnquest.
“The whole issue of crypto
currencies and assets is very dynamic. We have been deliberate in creating a
regulatory environment that safeguards
the country’s economic interests and shores up our global competitiveness.
These efforts will help to grow our reputation as an innovative and responsive
financial centre,” said Minister Turnquest.
The Bahamas has a budding crypto
ecosystem, including: crypto start-ups, exchanges, and traditional financial
institutions servicing crypto companies. Requests continue to come to the
Government from related businesses like crypto custodians,
and companies conducting initial token offerings (ITOs) and security token
offerings (STOs) that want to base their business in The Bahamas.
“New legislative initiatives
will facilitate these growth opportunities and drive innovation and
diversification in the industry. I look forward
to presenting the Bill to Cabinet when the public consultation phase is
complete,” said Minister Turnquest.
About
the DARE Bill
The DARE Bill provides for the
regulation of the issuance and sale of digital tokens, and for the regulation
of the conduct of those issuing digital tokens and those providing intermediary
services related to the issuance of digital tokens. It also provides clarity
with respect to stable coins.
Specifically, the Bill creates
a legislative structure by which persons who wish to participate in the digital
token space are guided on the requirements for entry into and participation in
the industry. These requirements stipulate who may participate, the level of
capital required, the rules for reporting and seeking the Commission’s
approval, and the penalties for failure to comply.
Additionally, the rules
stipulate that participants must adhere to established anti-money laundering
(AML) and counter-financing of terrorism (CFT) laws, must take data protection
measures related to the personal information of clients, and must implement
measures to prevent data breaches which would jeopardize the crypto assets of
clients.
He said the comprehensive Bill will provide participants in the digital token space with clear rules of entry and operation in The Bahamas’ crypto market.
Press Release: Ministry of Finance