Bahamas’ Securities Commission has legalized the Digital Assets and Registered Exchanges Act [DARE], marking a new standard in crypto asset regulation. Building upon the foundation established by the DARE Act, 2020, the regulator’s main focus was to ensure the new law aligns with global standards set forth by the International Organization of Securities Commissions standards for regulators and the Financial Action Task Force Recommendations.
Some key takeaways of Bahamas’ DARE 2024 include encompassing a wider range of digital asset activities, including derivatives and staking services, and custody provisions of digital assets. DARE 2024 also introduces a first-of-its-kind disclosure regime for staking digital assets belonging to clients or the operation or management of a staking pool as a business.
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, algorithmic stablecoins are prohibited from being issued.
The Caribbean island was at the center of the FTX saga whose eventual collapse left significant implications for the country’s economy and reputation. Despite that, the Bahamas have been steadily picking up pace, and the latest move signals renewed focus on addressing the evolving landscape of digital assets.
Bahamas’ Crypto Revival As Russia Catches Up
Meanwhile, Russia is moving swiftly in its efforts to legalize cryptocurrency for cross-border transactions amidst increasing Western sanctions. The move led by the Ministry of Finance and the Bank of Russia indicates a significant shift in the country’s stance on digital assets. Deputy Finance Minister Alexei Moiseev has advocated for establishing a legal framework for cross-border crypto transactions.
He vouched for home-grown crypto platforms that comply with Anti-Money Laundering [AML] and Know Your Customer [KYC] regulations. The proposed legislation aims to allow legal cross-border payments without integrating cryptocurrency into Russia’s domestic financial system.
This move has gained support from key Russian officials, including the State Duma, which has been advocating for allowing miners to sell cryptocurrency as an export product. The proposed legislation is expected to be launched by the latter half of 2024, marking a significant milestone for Russia’s crypto industry.
