The Securities Commission of the Bahamas (SCB) placed at the beginning of April a cryptocurrencies regulatory framework project in consultation. The goal is to regulate the issuance or sale of digital tokens inside or outside the Bahamas and the conduct of sellers and brokers. The document went through a public consultation period of eight weeks. If approved, Bahamas will be another country with a regulatory framework for cryptocurrencies.
The bill regulates the entry of agents and the market share of tokens. In other words, it defines who can participate, the level of capital required, the provision of information and request for approval by the Commission, besides penalties.
In addition, the proposed legislation requires that participants comply with the laws to fight money laundering and financing of terrorism (CFT), ensuring personal data protection measures and implementing measures to prevent data breaches which compromise investors’ crypto assets.
Regulatory framework for cryptocurrencies in the Bahamas will be wide-ranged
The Chairman of the Board of Directors of the SCB, Robert Lotmore, said that the Bill is the first of a series that aims to establish a comprehensive approach to the regulation of cryptoassets. “The SCB has been working closely and consulting the industry for the development of this bill draft, which we anticipate will be the first piece of a set of laws that establish the regulatory framework for the cryptoassets in the Bahamas,” said Lotmore to International Investment.
The Executive Director of the SCB, Christina Rolle, stated that the decision to propose crypto legislation comes from the great interest in business in this area. “Last year, the number of consultations of interested entrepreneurs grew a lot. Therefore, we believe that it was necessary to have a specific legislation, “she said.
The project creates conditions for the regulation of digital tokens emissions inside or outside of the Bahamas. Although non-security tokens are not directly approved by the SCB, there will be some level of supervision. On the other hand, the security tokens will have to be approved directly by the SCB. The regulatory proposal will also cover the registration of crypto exchanges and other related business. Both fiat-to-crypto exchanges as well as crypto-to- crypto and decentralized and centralized exchanges will be subject to the rules.
The Bahamas has consolidated itself as a crypto-friendly country
The SCB is responsible for the administration of the Securities Act (SIA) of 2011 and the Law of Investment Funds of 2003 (IFA), which provides for the supervision and regulation of the activities of investment funds, securities and capital markets. The Commission is also responsible for the administration of Financial and Business Services Law in the country.
The Bahamas has been consolidating itself as a crypto friendly country. The issuer of the Tether, for example, has a billion dollar bank account in the country in which stores the token’s collateral. In addition, last year, the country’s Central Bank announced that it was studying to create its own cryptocurrency. Although it has not yet indicated to move towards this direction, Brazil has been working with the possibility of a regulatory sandbox for the cryptocurrencies.