Securities Commission Of The Bahamas Opens Consultation Period For DARE Bill 2023

• Law Firm: Bahamas Financial Services Board
• Subject Matter: Finance and Banking, Corporate/Commercial Law, Technology, Financial Services, Securities, Fin Tech
• Author: Bahamas Financial Services Board
• Published date: 05 May 2023

Nassau, The Bahamas, Tuesday 25 April 2023 - The Securities Commission of The Bahamas (the Commission) today published the Digital Assets and Registered Exchanges (DARE) Bill 2023 for consultation. The DARE Bill 2023 expands the definition and list of digital asset business activities and includes robust consumer and investor protection, risk management, and market innovation and development provisions. The Bill strengthens financial and reporting requirements for digital asset businesses and requirements related to: 1) custody and custodial wallet services; 2) operating a digital asset exchange; 3) providing advice on and management of digital assets; 4) provision of staking services; and 5) a comprehensive approach to the regulation of stablecoins. The Bill aims to become effective in The Bahamas by the end of Q2 2023.

"I am pleased to present for consultation the Digital Asset and Registered Exchanges Bill 2023, which will modernize and strengthen requirements for conducting digital asset businesses in The Bahamas, and for the protection of consumers, investors, and the markets," said Ms. Christina Rolle, Executive Director of the Securities Commission of The Bahamas. "We invite the public to respond to this consultation process as we seek to develop and expand the legislative framework. Once passed, DARE 2023 will be among the most advanced pieces of digital asset-legislation in the world and will align with The Bahamas' commitment to facilitating development and innovation in a well-regulated environment."

Review of the DARE Act 2020

The Securities Commission of The Bahamas has continually sought industry feedback, internal reviews, and international assessments of the DARE Act 2020. Additionally, the Commission's continuous monitoring of the digital asset sector reflects a comprehensive and proactive approach that includes the ongoing evaluation of international regulatory advancements as well as benchmarking the DARE Act 2020, with comparable frameworks from jurisdictions such as the European Union, Hong Kong and New York, USA.

In April 2022, the Commission began consolidating its ongoing review of the DARE Act for the purposes of addressing any legislative gaps, ambiguities, and procedural concerns within the legislation. The Commission engaged the international law firm Hogan Lovells to draft the new Digital Assets and Registered Exchanges Bill 2023 (the DARE Bill), and will continue to collaborate with them in the consultation process until the...