Regulation
Bahamas Launches DARE Act to Regulate Cryptocurrencies
The Securities Commission of the Bahamas has legalized the Digital Assets and Registered Exchanges Act [DARE]setting a new standard in cryptocurrency regulation. Building on the foundation established by the DARE Act of 2020, the regulator’s primary goal was to ensure the new law is in line with global standards set by the International Organization of Securities Commissions, the Standards for Regulators and the recommendations of the Financial Action Task Force.
Some of the key findings of The Bahamas’ DARE 2024 include the inclusion of a broader range of digital asset activities, including derivatives and staking services, and digital asset custody provisions. DARE 2024 also introduces a first-of-its-kind disclosure regime for staking customer-owned digital assets or operating or managing a staking pool as a business activity.
The Act defines stablecoins and allows for the registration of existing stablecoins. It also specifies acceptable forms of reserve assets and establishes new requirements for the custody and management, segregation, reporting, and redemption of reserve assets. However, it is prohibited to issue algorithmic stablecoins.
The Caribbean island was at the centre of the The FTX Saga whose eventual collapse left significant implications for the country’s economy and reputation. Despite this, the Bahamas has steadily picked up the pace, and the latest move signals a renewed commitment to addressing the evolving digital asset landscape.
Cryptocurrency Resurgence in the Bahamas as Russia Recovers
Meanwhile, Russia is moving quickly in its efforts to legalize cryptocurrency for cross-border transactions amid mounting Western sanctions. The move led by the Ministry of Finance and the Bank of Russia signals a significant shift in the country’s stance on digital assets. Deputy Finance Minister Alexei Moiseev has advocated for the establishment of a legal framework for cross-border cryptocurrency transactions.
He ensured that national crypto platforms comply with anti-money laundering regulations [AML] and know your customer [KYC] regulations. The proposed legislation aims to enable legal cross-border payments without integrating cryptocurrency into the Russian national financial system.
The move has won support from key Russian officials, including the State Duma, which has supported the possibility of allowing miners to sell cryptocurrency as an export product. The proposed legislation is expected to be launched by the second half of 2024, marking a significant milestone for the Russian cryptocurrency industry.