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Regulatory authorities in the Bahamas is radically pushing for a new framework for token projects. The projects will aim to turn the popular tourist destination into a jurisdiction for blockchain startups.
The new policy is spearheaded by the Securities Commission of the Bahamas, which recently filed a draft of the new bill regulating token offering that is not deemed securities.
More Stringent Measures
The new bill extensively highlights the procedures for registering such offerings and the need to inform authorities and the investors about the sale of a new token. The regulatory authorities in the island nation submitted the draft for public deliberation and consultations on March 27 and will still listen to the view of the public until May 28 before proceeding to the next phase.
The executive director of the commission Christina Rolle stated that the commission appreciates the comments and recommendations and the period of consultation will likely be extended for another month.
After that, the agency will pass the document to the government and then proceed to the parliament where the lawmakers will deliberate on it before turning the bill into law.
Step in the Right Direction
The latest move by the Bahamas is a welcome development, as other island nations have also made frantic efforts to regulate token sales in their respective countries. In June, the government of Malta passed three laws allowing cryptocurrencies and trade in the country.
Bermuda and Gibraltar are also following the same procedure. In Bermuda, a new law allows the projects carrying out ICO to apply to the ministry of finance for seamless and fast approval. The authorities in Gibraltar are also undergoing a process that will allow the issuing and trading of tokens.
When asked why the commission is embarking on the set of regulation, Rolle stated that the country received a lot of interests in the jurisdiction of the regulation of tokens and virtually every country in the world is doing the same.
‘’In the late 2017, we started receiving a lot of interest in the jurisdiction for the registration of tokens. When we started to benchmark what was happening around the world we saw that we needed to create a legal framework’’ she stated.
Furthermore, the Bahamas regulatory boss added that the agency including the country’s ministry of finance has also been getting a lot of inquiries from the token projects looking for a jurisdiction to register.
Under the new regulation, a new set of laws will apply to token issuers, wallet providers, exchanges and anybody who is facilitating any form of initial token in the Bahamas. The bill urges token projects to publish a full description of the project, state any form of changes in the offering and regularly update the memorandum, so as to notify the members of the public.
Regulating the crypto space is gaining worldwide acceptance, Bitcoin Exchange Guide reported earlier in the month about the new crypto regulations in Liechtenstein.
The new act was created to improve the clarity of the field as well as to improve investor protection and to combat money laundering.