- The Bahamas plans to enhance its crypto regulations as per a consultation document.
- Bahamas’ new bill covering stablecoins, mining, and staking could be among world’s best, says SCB’s Executive Director.
- New legislation mandates digital asset exchange operators to ensure adequate systems and controls.
A consultation document was published stating that the Bahamas intends to strengthen its cryptocurrency regulations following the collapse of FTX, on Tuesday. The crypto exchange was primarily located in the Caribbean country.
Christina Rolle, the Executive Director of the Securities Commission of the Bahamas (SCB), stated that the new bill, which covers stablecoins, proof-of-work mining, and crypto staking, has the potential to be one of the world’s most advanced digital asset legislations.
In 2020, the Bahamas had already passed the Digital Assets and Registered Exchanges Act (DARE). It was also the home of Sam Bankman-Fried and his crypto exchange FTX, which experienced a collapse in November 2022.
Following the collapse of FTX, Sam Bankman-Fried has been accused of misusing corporate funds to purchase luxury villas. The United States Department of Justice has charged him with fraud, to which he has pleaded not guilty.
Meanwhile, FTX’s new management has criticized the poor governance during his tenure and is currently embroiled in a lengthy legal battle with the Bahamas regarding jurisdiction.
The consultation document also stated that under the new legislation, digital asset exchange operators must guarantee that the systems and controls used in their operations are sufficient and suitable for the size and type of their business.
In addition, the new legislation will introduce a comprehensive regulatory framework for stablecoins, which aim to peg their value to other assets such as fiat currency. This comes after the significant collapse of TerraUSD last year. The framework will also cover other crypto-related services. Moreover, the new legislation will introduce a comprehensive regulatory framework for stablecoins, which aim to peg their value to other assets such as fiat currency.
This comes after the significant collapse of terraUSD last year. The framework will also cover other crypto-related services, including advice, derivatives, and crypto staking, as well as NFTs that are classified as financial assets.ng advice, derivatives, and crypto staking, as well as NFTs that are classified as financial assets.