New Bahamas Digital Asset Legislation Passed to Strengthen Crypto Asset Management

Key Points:

• The Bahamas Parliament has passed the Digital Assets and Registered Exchanges Act.
• These new Bahamas digital asset legislation, alongside the Securities Industry Act 2024, will help further establish the Bahamas as the foremost international financial center.

The Securities Commission of The Bahamas announced that the Parliament has enacted the Digital Assets and Registered Exchanges Act, 2024, which further deepens regulation over digital assets and cryptocurrencies.

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Bahamas Digital Asset Legislation Passed

The new Bahamas digital asset Legislation builds on the legal base set by the DARE Act 2020 and introduces comprehensive reforms in respect of the dynamism of digital asset markets.

According to Christina Rolle, Executive Director of the Securities Commission, DARE 2024 sets a new standard for regulating digital assets.

“The aim is to ensure investor protection and responsible innovation for the placing of The Bahamas at the forefront of digital asset oversight globally,” said Rolle.

DARE 2024 is in line with international best practices and recommendations that have been issued by the International Organization of Securities Commissions and the Financial Action Task Force. The new Bahamas digital asset Legislation simply epitomizes a wide array of global benchmarking and consultations taken from key stakeholders and experts within the industry.

New Laws Boost Bahamas’ Status as a Financial Hub

Some of the major characteristics of DARE 2024 include strict standards for the management of both conflicts of interest and relationships with third-party entities. It classifies non-fungible tokens either as financial or consumer assets, includes requirements for liquidity and reporting, forbids the issuing of privacy tokens, and disallows proof-of-work mining.

The tabling of DARE 2024, in conjunction with the Securities Industry Act 2024, represents one of the ways The Bahamas ensures it will be able to keep up with the very dynamic environment. Both pieces of legislation are targeted at further entrenching the country’s position as a premier financial center by giving consumer and investor protection at world-class standards and creating an environment that encourages innovation in the area of Fintech.