Aiming for crypto regulation, The Securities Commission of Bahamas has come up with the crypto bill after several issues faced by it in 2022.
2022 was a difficult year for the Securities Commission of Bahamas after it ran into disagreements and hurdles with the United States after the bankruptcy of a big crypto exchange.
It has laid out a plan to prevent such occurrences in the future through a recently published draft of a crypto bill called Digital Assets and Registered Exchanges (DARE) Bill 2023. Initially, after undergoing a consultation period, the bill is expected to be enacted into law by the end of the current quarter.
“We invite the public to respond to this consultation process as we seek to develop and expand the legislative framework. Once passed, DARE 2023 will be among the most advanced pieces of digital asset legislation in the world and will align with The Bahamas’ commitment to facilitating development and innovation in a well-regulated environment,” said the Executive Director of the Bahamas regulator.
DARE 2023 includes several areas of services under digital assets, including derivative services, advising and management of digital assets, and node staking and services. Regulating initial token offerings and custodial wallets also puts requirements for exchanges’ systems.
The crypto bill has included a unique feature in the disclosure rules for the staking of digital assets. Crypto firms would be needed to disclose details of the staking protocol, client agreement terms, details of the assets being staked, penalties and rewards granted to users and the method of selecting staking participants.
Banning privacy tokens and the issue of algorithmic stablecoins, the DARE 2023 would also include terms on NFTs, mining, conflict resolution and liquidity requirements.