NASSAU, BAHAMAS – Much needed regulations guiding the growth of financial technology in The Bahamas may be on the way, with discussions now being had over the way forward for the sector.
In a recent statement, Bahamas Financial Services Board Executive Director Tanya McCartney revealed that the Securities Commission of The Bahamas had started the discussions around the topic.
“Noting the growing interest in the jurisdiction as it relates to initial coin offerings, crypto exchanges, and other digital token arrangements, the Commission has initiated discussions for the development of a regulatory framework aimed at providing clarity to participants in the crypto space,” said McCartney. “It is also taking cognizance of the emergence of Risk-Based Supervision as an approach to regulatory supervision of financial institutions globally.
“The Commission has designed a risk-based supervisory framework, which includes continuous Anti-Money Laundering/ Combating the Finance of Terrorism (AML/ CFT) risk identification and monitoring, along with supporting templates.”
The statement follows recent comments by Stefen Deleveaux, the president of the Caribbean Blockchain Alliance (CBA) on the potential regulatory framework to direct the industry’s growth and help advance it to the heights seen by regional counterparts.
“You can have individual companies doing things, but we need to be operating as a region and as a block in terms of finance and growth,” Deleveaux said earlier. “That’s why it’s important now to keep everyone on the same page, so no one goes too far now and the rules change later. So we are pushing for and collaborating on the best kinds of regulations and the best ways government can interact with blockchain in general.”
He noted that regional partners were all on the same page with moving forward with government engagement, the advocacy group has been having informal talks with stakeholders in order to flesh out how the industry would be regulated.
“We will be engaging with regulators and governments in different countries. Hopefully, we will get more of convergence to have a regional regulatory framework to push and get everyone on the same page, so that government and regulators can approach this new technology in the right way without stifling and blocking growth,” he said.
A part of this process is educating the decision makers and the greater population on the possibilities that lie ahead in the future.