The Bahamas Parliament has passed the Digital Assets and Registered Trading Platforms Act (DARE 2024). The bill was introduced in the wake of the collapse of the FTX exchange registered in the country and is intended to tighten control over the crypto market.

All cryptocurrency companies will be required to comply with Know Your Customer (KYC) procedures and disclose financial statements when the law comes into force.

“DARE 2024 also introduces a first-of-its-kind disclosure regime for staking of digital assets owned by customers. In addition, the new rule applies to staking pool management,” the document says.

The law defines the concept of “stablecoin” and establishes requirements for the storage and management of this type of asset, and the issuance of algorithmic stablecoins is prohibited.

The Bahamas Securities Commission announced that the new law will limit the use of risky assets and protect the interests of investors investing in cryptocurrencies.

After the bankruptcy of the crypto exchange FTX In 2022, the Bahamas government has promised to tighten its digital asset laws to restore the jurisdiction’s reputation as a financial services hub. The country’s central bank has previously passed
decision to require all commercial banks in the country to accept the digital Bahamian Sand Dollar – amid low demand among the country’s citizens.