Crypto: The Bahamas wants to tighten the rules following the FTX drama

Nassau Bahamas

Nassau, Bahamas – Credit: Shutterstock

At front row seats during the collapse of FTXthe Bahamas count today strengthen the regulations on the digital assets.

Before its bankruptcy, the group FTX and its founder Sam Bankman-Fried – who has since been extradited to the US and faces a dozen charges – were based in the Bahamas, a paradise archipelago known for its crypto-friendly.

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Following the high-profile collapse of the exchange platform in November 2022, local authorities now want to toughen up regulation around digital assets.

The Bahamian stock market watchdog SEC has just opened a consultation to receive comments on proposed amendments to the legislation Digital Assets and Registered Exchanges Act.

The revisions include strengthening reporting requirements for crypto startups but also covering more activities including staking.

In addition, the law DARE Would prohibit the issuance of algorithmic stablecoins and privacy-oriented tokens. The objective: to minimize the systemic and contagion risksaccording to the release.

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 digital asset laws in the world and will align with The Bahamas’ commitment to facilitating development and innovation in a well-regulated environment,” said Christina Rolle, director of The Bahamas SEC.

Following his extradition from the Bahamas to the U.S., alleged fraudster SBF was released on a $250 million bond. The latter is partly guaranteed by his parents’ villa, where he is under house arrest. His trial is expected to take place next fall.

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