The Bahamas Securities Commission (SCB) has responded constructively to the criticism from the international community following the collapse of the FTX cryptocurrency exchange.
As a result, the regulator has decided to tighten its supervision of digital assets belonging to citizens.
In order to achieve this goal, the SCB has drafted a new bill called Digital Assets and Registered Exchanges (DARE).
Which includes a more comprehensive definition of digital asset businesses, greater disclosure requirements for cryptocurrency staking operations, and increased obligations for stablecoin issuers.
In addition, the SCB has taken steps to prohibit the issuance and circulation of all types of algorithmic stablecoins in the Bahamas.
According to the regulator, the new amendments will help to strengthen safeguards,
Establish new disclosure and reporting requirements, specific registration obligations, and ongoing oversight of operators in the digital asset space.
The SCB has released a statement indicating that consultations on the proposed bill will continue until May 31.
Following this, the bill is expected to come into effect by the end of the second quarter.
The regulator’s move to tighten supervision of digital assets follows its takeover of over $3.5 billion in assets from FTX and its subsidiaries following the bankruptcy scandal that rocked the exchange in December.