The collapse of once a leading crypto exchange, FTX, came as a shock and learning for many. The Bahamas is also included in the list of those who took the lessons after the fiasco. Recently the country is reported to seek tougher crypto regulations in order to avoid the FTX collapse-like incidents.
In a Tuesday, April 25 press release, the Securities Commission of the Bahamas (SCB) noted the publication of the Digital Assets and Registered Exchanges (DARE) Bill 2023. The commission put the bill which seeks the expansion of “definition and the list of digital asset business activities” for consultation.
The DARE bill, also includes the provisions of vigorous consumer and investor protection, proper management of risks, the innovation and development in the burgeoning asset class market.
With the newly introduced set of rules, the commission is looking towards strictly guiding the Virtual Assets Service Providers (VASPs) activities willing for business operations within its jurisdiction.
The Bahamian authorities have been criticized by CEO and restructuring officer of FTX, John Ray III, since the crypto exchange filed for bankruptcy. FTX’s current management reportedly noted in its legal filings about the evidence of the unauthorized access of the Bahamian government into the systems of crypto exchange. The access was said to be intended to procure the company controlled crypto assets. However, SCB did not accept, rather countered the statements from Ray.
Introducing stricter crypto regulation could be the action in the wake of similar efforts to ensure the regulators’ tight grip over the loose points in the market. It anticipates increasing scrutiny over crypto companies and following the standards like the European Union, the United States and Hong Kong are looking to deploy.
The Bahamian commission is reportedly open for taking the consultation until the May 2023 end. Following the suggestions, it is looking for the DARE bill’s proposals to come into the power by the end of Q2 2023.
Following the FTX collapse, the Bahamian police were the first one to respond and arrest founder and former chief executive officer Sam Bankan-Fried. Later, he was extradited to the United States for further proceedings. At the time of his extradition, Bankman-Fried was charged with about eight counts of charges against him including wire fraud and money laundering, etc. However, with proceedings going further, the number of indictments increased and now currently stands at thirteen charges, with the recently added one of bribery.
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