The Securities Commission of The Bahamas has escalated their proposal to create a new regulatory framework for the issuance and sale of digital tokens in order to attract more blockchain business to set up offices on the island. This according to the proposed Digital Assets And Registered Exchanges Bill, 2019.
Accepting and Regulating the Change
The financial regulatory authority of the famous tourist island, The Bahamas, has filed a draft to better regulate tokens that are not considered as securities. The bill titled “Digital Assets and Registered Exchanges Bill 2019,” proposed by the Securities Commission of The Bahamas highlights the procedure to register token offerings and the importance of informing the authorities as well as the investors about the sale.
The proposed bill is also expected to regulate and control the registration of cryptocurrency exchanges and other businesses in this industry, such as wallet services. The bill quoted:
“The Bill applies to any person who as organizer, issuer, founder, sponsor, wallet provider, exchange, purchaser or investor participates in the formation, promotion, maintenance, organization, sale or redemption of an initial token offering. “
The draft is open for public consideration and comments till May 27. The executive director of the commission Christina Rolle mentioned that after the consultation period, the document will be passed on to the parliament for consideration. The new legislation will be passed this autumn if everything goes as expected, she said.
This bill will be the first legislation that will establish a regulatory framework for crypto assets in The Bahamas, told SCB Chairman Robert Lotmore.
Catching Up on the Blockchain Wave
By filing a draft for supportive crypto regulations the Bahamas has taken a step ahead to join the many other countries who’re leveraging their businesses by implementing blockchain and cryptocurrencies. Specific crypto regulation will not only make it easier for the government to track and bust illicit activities but also help boost businesses in the right direction.
We witnessed the traction that Malta gained soon after legalizing crypto businesses in a time when other countries were too skeptical to accept it. A multitude of businesses from across the world shifted offices from their home countries to Malta because of favorable crypto regulations.
Once the legislation is passed, The Bahamas, already famous as a tourist destination, may find itself luring a swarm of businesses who would want to disrupt the country’s travel industry with the blockchain and cryptocurrency technology.