The Securities Commission of The Bahamas has released a new draft regulation in response to the collapse of the Bahamas-based crypto exchange FTX. The Digital Assets and Registered Exchanges (DARE) Bill 2023 is an update to the original DARE Act of 2020 and aims to strengthen the regulatory framework for digital asset businesses.
Under the proposed bill, the definition of a digital asset business will be expanded, and new reporting requirements will be introduced. The regulation will also enhance requirements for businesses offering crypto custody and wallet services, as well as crypto exchanges, staking service providers, and issuers of stablecoins and other digital assets.
In addition, the regulator will keep a register of initial token offerings and introduce a dedicated disclosure regime for staking providers. The disclosure regime will collect information on client agreements and other details about how staking pool businesses operate.
The Securities Commission of The Bahamas has opened a public consultation period until May 31 to receive feedback on the new bill. The bill has been in the works since April 2022, and law firm Hogan Lovells has been engaged to draft it.
The Bahamas has been a popular hub for crypto companies, but the collapse of FTX in November 2022 dealt a significant blow to the country’s reputation. The updated bill is seen as an attempt to restore confidence in the country’s regulatory framework for digital assets.
The Securities Commission of The Bahamas aims to enact the bill into law by the end of the second quarter of this year. Comments and suggestions from the public can be submitted through the Commission’s website.