The Bahamas Securities Commission recently passed the Digital Assets and Registered Exchanges Act, 2024 (DARE 2024), marking a significant milestone in the country’s digital assets industry. This move comes nearly two years after the collapse of FTX, a major exchange headquartered in the Bahamas in 2022.
Christina Rolle, the executive director of the Securities Commission, emphasized that DARE 2024 aims to provide regulatory clarity for the digital assets industry while promoting responsible innovation. She highlighted the framework’s focus on investor protection and its role in positioning The Bahamas as a leader in global digital asset regulation.
DARE 2024 expands the scope of regulated digital asset activities to include advisory and management services, digital asset derivatives, and staking services. The legislation introduces stricter requirements for digital asset exchanges to enhance investor and consumer protection. It also establishes a comprehensive custody framework for digital asset custody and custodial wallet services.
The new law provides clear definitions and guidelines for staking services, stablecoins, and NFTs. It outlines the registration process, asset reserve policies, and custody management for stablecoins. Additionally, DARE 2024 prohibits the issuance of algorithmic stablecoins, privacy tokens, and imposes restrictions on Proof-of-Work (PoW) token mining activities in the country.
The introduction of DARE 2024 signals a renewed commitment to strengthening the regulatory framework for the digital assets industry in The Bahamas. By addressing key issues such as investor protection, responsible innovation, and transparency, the country aims to attract new opportunities and solidify its position as a pro-crypto hub on the global stage.
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