Regulation
Bahamas Introduces New, Revised Cryptocurrency Law After FTX Saga
The Securities Commission of The Bahamas has once again taken a revolutionary approach to cryptocurrency regulation, marking a monumental step. Today, the regulator took a step forward by incorporating the new Digital Assets and Registered Exchanges (DARE) Act 2024 into its law. The move has echoed a global buzz as the Bahamas tightens its grip on the dynamic landscape of the digital asset industry.
The new streamlined approach to cryptocurrency regulation also follows the recent liquidation of FTX Digital Markets Ltd., further sparking discussion in the cryptocurrency community.
Bahamas unveils new cryptocurrency law
The Securities Commission of The Bahamas has revealed that the DARE Act 2024 was passed into law by the nation’s parliament today, July 31. This law follows the DARE Act 2020, streamlining the nation’s approach to managing the dynamics cryptocurrency sector.
Christina Rolle, Executive Director of the Securities Commission, said, “DARE 2024 represents a new standard in digital asset regulation and is a testament to our commitment to robust risk management.” She added that the regulator has curated a framework that not only prioritizes investor protection but also empowers responsible innovation, propelling the nation to the forefront of digital asset management.
Meanwhile, the main highlights implemented under the new law included a plethora of developments. These included oversight of a broader range of digital asset activities, improved requirements for digital asset exchanges, and a first-of-its-kind framework for digital asset staking, among many others.
The main agenda, however, remains investor protection surrounding the use of digital assets. Furthermore, this law follows Sam BankmanThe FTX saga of in the nation, where an electoral process was conducted.
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FTX Launches Creditor Election Process
Following the FTX crash which impacted the cryptocurrency market, the latest development has pointed to a “liquidation election process.” Specifically, the liquidators of the fallen exchange have asked its clients to choose whether they “wish to participate in the official liquidation proceeding of FTX Digital Markets Ltd. in the Bahamas (the Bahamas Process) or the United States Chapter 11 proceedings (the “United States Process”).
The deadline for customers is also set for August 16 at 4:00 PM ET to choose a side. Additionally, “Ask Me Anything” sessions have been scheduled for customers to provide a seamless decision-making process.
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