The trade of digital assets within The Bahamas will soon be regulated by the Digital Assets and Registered Exchanges (DARE) Bill. The legislation, which was introduced in the House of Assembly on November 4th, 2020, provides a legal framework for the regulation of fintech-related products and services, including cryptocurrencies and digital ledgers.
The legislation has been drafted in alignment with the Financial Action Task Force’s (FATF) recommendations and has included the strongest elements of similar laws in other jurisdictions. The government has emphasized that the Bill strikes a good balance, providing a strong legal framework without overregulating.
This move now positions The Bahamas at the vanguard of this rapid-growth industry. There has been growing interest in The Bahamas, with its financial services expertise and investor-friendly laws, as a destination for emerging fintech businesses. Potential investors will now be able to set up shop in a stable regulatory environment with no ambiguity regarding the government’s response to their activities. With these new businesses come trade opportunities as digital business transactions attract cryptocurrencies and other digital assets into the local economy.
The government’s efforts in this area are far from done. Officials have indicated that the DARE Bill is the first of three bills focused on regulating fintech activities. The end goal is to ensure that The Bahamas’ laws are keeping up with international trends and developments within the fintech space, minimizing opportunities for money laundering and the use of funds for illegal activities, and setting up a new industry that can boost the economy and employ Bahamians in high-skill jobs.