Thursday, December 17, 2020

Bahamas' DARE legislation opens the door for new industry

SCB Executive Director Christina Rolle

Institutional Asset Manager

The passage of the Digital Assets and Registered Exchanges Bill, 2020 (DARE) has put in place the legal framework for a vital, well-regulated and compliant industry in The Bahamas for those interested in entering the digital asset space.

It also creates specific opportunities for entrepreneurial Bahamian Fintech firms to enjoy the credibility of being licensed and functioning under a comprehensive regulatory regime and participate in the Fintech industry that is being forged with the DARE Bill.

DARE legislation passed in the House of Parliament on 3 November, facilitates the registration of digital token exchanges, and the provision of services related to digital token exchanges. It also provides for the regulation of digital assets- based payment service businesses and for the registration of financial services related to the creation, issuance or sale of digital tokens and other digital assets. 

Prime Minister and Minister of Finance the Most Hon Dr. Hubert Minnis said a Fidelity Digital Assets’ Institutional Digital Assets Report illustrates the explosive growth of virtual assets, including virtual currencies, and the need for a jurisdiction like The Bahamas to equip itself with compliant and competitive legislation to participate in the digital asset space.

“The survey of almost 800 institutional investors across the US and Europe indicated that thirty-six percent (36 per cent) of respondents are invested in digital assets, and that six out of 10 believe digital assets ‘have a place in their investment portfolio’,” said the Prime Minister. 

According to the report, over 80 per cent of investors indicated that they would be interested in institutional investment products that hold digital assets.  Read more >>