NASSAU, BAHAMAS — Organization for Responsible Governance (ORG) Executive Director, Matt Albury believes the FTX collapse and issues surrounding it provides an opportunity for the government to learn from the crypto exchange giant’s failures.
Albury explained that Minister of Foreign Affairs Fred Mitchell’s sentiments after FTX CEO John Ray III accused the government and regulators for lacking transparency in the liquidation process, have some merit.
“As The Digital Finance industry is so new and countries worldwide wide are struggling with regulation and integration of Crypto currencies, it would stand That the Bahamas can draw some lessons from this incident to better grow and monitor this emerging industry,” Albury said.
On Thursday afternoon the press asked Mitchell about the growing public concern on how the FTX collapse would effect the future of outsiders doing business in the country as the country heavily relies on foreign direct investment for revenue.
The Minister said that the failure of a business is not a representation of the business sector in the jurisdiction where it took place.
Albury said that Mitchell has a point, and by the way the situation has played out, the government shouldn’t be held accountable for the actions of a company unless some transgression is discovered.
“From what has been shared thus far, It does seem like the local regulators responded as soon as an issue was noted and then the prescribed legal process was applied.
“Having concern about the international reputation of the Bahamas as a space for Foreign Direct Investment also makes sense. The Bahamas was not alone in heralding this company, even the World Economic Forum promoted their achievements,” Albury stated.
Furthermore, the ORG executive explained that situations like the FTX collapse is not unique.
He added that the Bahamas is often seen through the lens of past issues which may not reflect the current situation. to the Bahamas “business due to poor corporate governance isn’t unique in The Bahamas”.
“The opportunity within this situation is to demonstrate that The Bahamas responds fairly and consistently to issues and follows the rule of law.
“Moving past the immediate attention on Fx, The Bahamas Economic development can be supported by ensuring legal and functional framework that supports the success of companies that operate at a world class standard,” he continued.
“Doing so can build our reputation internationally and create economic development locally,” Albury said.
Since the organization was started Albury explained that they have been advocating for increased transparency and accountability among other issues, he said putting into effect a Freedom of Information Act would also help with these matters.
“Full enactment of FOIA can drive conditions that minimize the opportunities of another such incident.”
