The Securities Commission of The Bahamas has began a consultation period for the proposed Digital Assets and Registered Exchanges (DARE) law, 2023.
By keeping Bahamian consumers, investors, and markets informed about technical advancements in the digital asset sector, this law seeks to improve their protection.
Strong standards for risk management, market innovation and development, consumer and investor protection, as well as the definition and list of company operations using digital assets, will be included.
The DARE Bill 2023 increases financial and reporting requirements for enterprises dealing in digital assets as part of its all-encompassing approach to the regulation of stablecoins.
In addition, the bill specifies regulations for the operation of a digital asset exchange, the provision of advise on and administration of digital asset services, the supply of staking services, and more. By the conclusion of the second quarter of 2023, The Bahamas is where it will go into effect.
Additional information about the bill
The suggested improvements are meant to lessen the systemic and contagion risks connected with digital assets. A few examples of how the modifications enhance protection measures for operators in the digital asset space include new disclosure and reporting requirements, unique registration duties, and heightened continuous monitoring.
The proposed amendments to the DARE legal framework allow companies that deal in digital assets to adapt as the market grows. They also provide the commission the freedom to impose additional regulations on digital asset exchanges and specific criteria for different registrants.
The DARE Bill will establish new regulatory frameworks to ensure that the Bahamian legal system is current, proactive, and in line with global standards and best practices.
The DARE Bill of 2023 will cover greater territory in regards to digital asset operations than current international standards. Services could be provided by functioning as nodes in distributed ledger technology networks, administering digital assets, or dealing with their derivatives.
Under the terms of the measure, the commission is permitted to, if necessary, define “digital asset businesses” to encompass additional endeavors. A digital asset exchange’s operators are in charge of making sure the systems and controls they use are adequate and appropriate for the size and nature of their operations.
The DARE Act employs a thorough approach to guarantee that clients’ assets are returned to them, and custody or wallet service providers adhere to all required procedures to keep their clients’ digital assets safe and simple to access.
The DARE Bill establishes a fresh and robust regulatory framework for stablecoins. There are clear definitions of stablecoins, the ability to register stablecoins that already exist, information on the proper reserve asset forms, and new regulations for reserve asset administration, custody, segregation, reporting, and redemption.
