PM: Bahamas will continue to be a pioneer in the digital assets sector

PM: Bahamas will continue to be a pioneer in the digital assets sector

NASSAU, BAHAMAS — Prime Minister Davis says that The Bahamas will maintain its pioneering role in the digital asset sector. 

He emphasized that the nation’s success hinges on establishing a robust and stable regulatory framework within a rapidly evolving landscape.

During his opening speech at the D3 Bahamas conference held at the Atlantis, Paradise Island Resort, Davis said that The Bahamas will remain at the forefront of the digital asset space, despite concerns by some who have criticized the industry’s viability.

“Digital assets offer our country an incredible opportunity, allowing us to capitalize on our world-class financial services expertise and involve a new generation of Bahamians in innovative opportunities. Despite critics, the digital assets industry is here to stay.”

He continued: “Our success in the digital assets sector is contingent on our dedication to developing an effective and stable regulatory framework. While we aim to attract digital asset investors and consumers, we must ensure that our actions align with the highest global standards. We recognize the necessity of continuously adapting our regulatory framework to anticipate long-term industry growth.”

Prime Minister Davis highlighted that the Digital Assets and Registered Exchanges Act (2020), or DARE Act, was once among the world’s most advanced and comprehensive frameworks for regulating digital asset issuance, sale, and trade. He explained: “Since the DARE Act’s inception, the cryptocurrency landscape has evolved, prompting us to respond with a series of amendments last year. These amendments are designed to solidify our position as one of the world’s best-regulated jurisdictions.

“We remain a responsive and agile financial services hub, committed to consistently enhancing our regulations in response to emerging threats and risks.”

Amendments to the legislation are anticipated to be presented in Parliament soon and passed through both chambers by year-end. These changes to the DARE Act will encompass measures to clarify stablecoin regulation, introduce additional investor and consumer protection mechanisms, and establish a unified framework for registering and overseeing digital asset custodians and custodial wallet service providers, along with asset segregation requirements.

The government is also expected to introduce a disclosure framework for staking clients’ digital assets and managing staking pools as a business.

Considering the ever-changing global financial landscape and the growing population of unbanked individuals in the Caribbean and Latin America, Prime Minister Davis underscored that The Bahamas’ adoption of Fintech is also about addressing domestic challenges and promoting greater financial inclusion throughout the region.

“We view Fintech and DeFi as opportunities to foster financial inclusion across our archipelago and the wider region,” said Prime Minister Davis.

“The University of The Bahamas has entered into a licensing agreement with the Cambridge Centre for Alternative Finance, granting exclusive rights to its FinTech and Innovation academic program for qualifying full-time and continuing education students. This partnership between the University of The Bahamas, the Securities Commission of The Bahamas, and the University of Cambridge will feature Bahamas-specific case studies and references. Education will play a pivotal role in preparing our citizens for the future.”