The Bahamian Securities Commission (SCB) has been undeterred since the FTX scandal. It intends to take over the reins of the regulation of digital assets and registered exchanges. It has thus just published, on April 25, an unprecedented bill on the subject (DARE), opening a period of public consultation.
SCB Tightens Crypto Regulation After FTX Scandal
The scandal involving Sam Bankman and his defunct FTX exchange has shaken the confidence of the Bahamian government. The authorities, who drank the words of SBF without reservation, found themselves duped.
But despite this episode, the government has not lost its faith in cryptocurrencies. He simply bet on the wrong horse, which is not the case for all companies in the sector.
In order to avoid such inconveniences in the future, the Bahamas has decided to strengthen its regulations on cryptocurrencies. The Bahamas Securities Commission is committed to fostering the development and innovation of digital assets in a regulated environment.
DARE 2023: Advanced Legislation for Digital Assets in the Bahamas
This April 25, the SCB has published a DARE bill that expands regulated activities, including but not limited to digital asset management, derivative services and node services. It also establishes requirements for exchange systems, regulates crypto wallets and initial token offerings.
” Once passed, DARE 2023 will be one of the most advanced digital asset legislations in the world and will align with the Bahamas’ commitment to facilitate development and innovation in a well-regulated environment..” Says SCB Executive Director Christina Rolle
Bill 2023 updates the DARE Act of 2020. Work on this bill began in April 2022, with law firm Hogan Lovells engaged in drafting it.
Furthermore, this draft prohibits the issuance of algorithmic stablecoins while addressing liquidity requirements, mining, and conflict resolution.
The Securities Commission of The Bahamas (SCB) has currently opened a public comment until May 31 for the bill. However, she hopes that the latter will be adopted before the end of the second quarter.
In sum, the eyes of the whole world have been on Bahamian regulations following the FTX exchange debacle. This situation has created tensions between Bahamian regulators, the American judicial system and the new management of FTX. With this new regulation, the Bahamas aspires to become one of the most advanced digital asset regulators in the world.
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