Bahamas regulator tightens rules for crypto firms

The Bahamas Securities Commission (SCB) has presented for public consultation a bill on digital assets and registered exchanges (DARE). The initiative followed the collapse of the regulator-supervised FTX.

The document outlines tighter rules governing crypto-related businesses.

In particular, DARE includes an expanded definition of crypto business, disclosure requirements for staking platforms, and stricter approval criteria for issuers of stablecoins. The latter would ban the issuance of algorithmic “stablecoins”.

According to the document, internal controls for trading platforms should “match the scale and nature of their business”.

“The amendments strengthen protection mechanisms, such as new disclosure and reporting requirements, specific registration obligations, and enhanced ongoing oversight of digital asset operators,” the bill says.

The Commission will accept comments until 31 May. The regulator expects that DARE will be approved by the end of May.

FTX's new chief executive John Ray has repeatedly criticised the regulator. He claimed to possess evidence of unauthorized access by the agency to the exchange's systems “for the purpose of obtaining digital assets” that should be controlled by FTX. SCB denied Mr. Ray's claims.

Earlier, the Commission had received information about possible fraud involving FTX two days before its bankruptcy filing.