Regulation
Bahamas launches DARE law to regulate cryptocurrencies
The Bahamas Securities Commission has legalized the Digital Assets Act and Registered Exchanges [DARE]marking a new standard in crypto asset regulation. Building on the foundations established by the DARE Act of 2020, the regulator’s primary objective was to ensure the new law complies with global standards established by the International Organization of Securities Commissions Standards for Regulators and the recommendations of the Financial Action Task Force.
Key takeaways from the Bahamas DARE 2024 include the inclusion of a broader range of digital asset activities, including derivatives and staking services, as well as provisions for the custody of digital assets. 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.
The Act defines stablecoins and authorizes 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 center of the The FTX Saga The collapse of the latter had significant consequences for the country’s economy and reputation. Despite this, the Bahamas has gradually picked up the pace and this latest move demonstrates a renewed focus on the evolving digital asset landscape.
Cryptocurrency Sees Revival in Bahamas as Russia Catches Up
At the same time, Russia is rapidly moving forward with its efforts to legalize cryptocurrencies for cross-border transactions amid increasing Western sanctions. This initiative 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 advocated for the establishment of a legal framework for cross-border cryptocurrency transactions.
He vouched for local crypto platforms that comply with anti-money laundering measures [AML] and know your customer [KYC] Regulations. The proposed legislation aims to allow legal cross-border payments without integrating cryptocurrency into the Russian national financial system.
The move has received support from top Russian officials, including the State Duma, which is pushing for miners to be able to sell cryptocurrencies as an export commodity. The bill is expected to be launched by the second half of 2024, marking a major milestone for the Russian crypto industry.