Bahamas securities watchdog presents comprehensive new draft digital assets act

The Securities Fee of The Bahamas (SCB) printed a draft of the Digital Property and Registered Exchanges (DARE) Invoice 2023 on April 25. The sweeping invoice will endure a session interval with the objective of enacting it by the tip of the quarter.

The 2023 invoice updates the DARE Act of 2020. Work on the invoice started in April 2022, with the Hogan Lovells regulation agency engaged to draft it. SCB Government Director Christina Rolle said:

“As soon as handed, DARE 2023 will likely be among the many most superior items of digital asset-legislation on this planet and can align with The Bahamas’ dedication to facilitating growth and innovation in a well-regulated setting.”

Amongst different issues, the invoice expands the scope of regulated enterprise actions to incorporate digital asset advising and administration, spinoff providers, node providers and staking. It units necessities for exchanges’ techniques and controls and regulates custodial wallets and preliminary token choices.

The Securities Fee of The Bahamas has issued the Digital Property and Registered Exchanges Invoice, 2023 for public session. The session interval ends Wednesday 31 Could. Info could also be discovered on the Commissions web site right here >> https://t.co/EvgzMc1OFU pic.twitter.com/AVnhiClhSl

— Securities Fee of The Bahamas (@SCBgov_bs) April 26, 2023

The invoice additionally gives a “first-of-its-kind” disclosure regime for digital asset staking. Phrases of the shopper settlement, particulars of the staking protocol, the property being staked, the rewards or penalties a person would possibly earn and the strategy for choosing staking individuals should all be disclosed.

The invoice bans the issuance of algorithmic stablecoins and privateness tokens within the nation and touches on nonfungible tokens, liquidity necessities, mining and battle decision.

Associated: Bahamas regulator denies asking crypto exchange FTX to mint new tokens

Bahamian regulation was topic to worldwide scrutiny after Bahamas-based cryptocurrency trade FTX went bankrupt in November amid accusations of fraud and corruption. This led to a certain amount of friction between Bahamian regulators and the USA courtroom system in addition to the new FTX management.

Feedback on the invoice may be made by means of Could 31. The SCB hopes the invoice will come into pressure by the tip of the second quarter this yr.

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