The Bahamas financial regulator published a draft of a new comprehensive bill on digital assets. Public discussion of the legislative initiative will continue until May 31.
The Securities Commission of The Bahamas (SCB) unveiled an updated version of the Digital Assets and Registered Exchanges (DARE) bill. Parliament plans to consider the passage of the legislation by the end of Q2 2023.
The new version of DARE is a revision of the current bill that was passed in 2020. Work on the new version began in April 2022, with the law firm Hogan Lovells drafting the bill.
The updated legislation expands the scope of regulated business activities related to digital assets to include:
- advising;
- asset management;
- derivative services;
- node services and staking.
The draft law bans the issuance of algorithmic stablecoins and privacy tokens, introduces liquidity requirements, establishes rules for mining and non-fungible tokens, and prescribes the procedure for resolving relevant conflicts.
Moreover, custodial wallets and ICOs fall under the regulators’ purview. The new version of DARE also formulates stricter requirements for operators of crypto exchanges and provides a special disclosure regime that covers the activities of customer digital assets and funds managed by the exchange.
According to Christina Rolle, SCB Executive Director, the updated legislation will be one of the most advanced in the world and create a well-regulated environment that facilitates development and innovation.
The introduction of the new regulations is likely linked to the collapse of the FTX crypto exchange, whose main legal entity was registered in The Bahamas.
