[2019-05-19]Bahamas to Regulate Cryptocurrency and Token Sale

[Vladdirescu87]

Bahamas plans to introduce strong regulations for token and cryptocurrency sales, intending to make the country a better place for digital currency and blockchain businesses. The Securities Commission officially filed a draft of the bill back in March seeking to regulate token offerings that are not considered securities.

Bahamas is not the first island country to show interest in cryptocurrencies or introduce such bills. Back in June last year, Malta through its Financial Services Authority ( MFSA), passed 3 laws that enables the issuance and trade of digital currencies such as Bitcoin, Ether, Ripple, etc., within its borders, and this has attracted big exchanges such as Binance to take its services there.

https://coinidol.com/bahamas-regulate-cryptocurrency/

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[CryptoBry]

So Bahamas now decides that Malta should not get the monopoly of the business arising from the blockchain and cryptocurrency as it now poised to open up its territory to many fintech companies and projects. I think this can be one of the best decisions the island nation made so far. The potential can be so staggering especially if they know how to market the place for new locators and investors from many parts of the world. I am sure that many more other countries will be following the steps taken by Malta and this time Bahamas in welcoming the new economy into their island nation. Welcome...Bahamas to the exciting world of cryptocurrency.

[Harlot]

Like I said before countries who have nothing else to lose tend to move faster when it comes to cryptocurrency adoption as the reward is bigger than the economic risk they will had. Just by simply putting up their own regulation they will soon attract crypto related investments in their country which in a faster pace compared to countries who are conservative with cryptos. They are just following the footsteps of other successful island countries out there and I think the rest of the countries who barely have any economical risk should also follow.

[joniboini]

They are just following the footsteps of other successful island countries out there and I think the rest of the countries who barely have any economical risk should also follow.

Not should, but would I think. This is their biggest chance to take part in one of the most interesting markets in this decade before the bigger countries eat all of their opportunity. As long as they make sure scammers can't register and claims that they're legit easily, I think we should support those countries.

Pretty sure there will be a lot of ICOs or IEOs that would love to have clear legal standing in other countries if they can't do it on their home, but the question is how to filter the good from the scam one. Not only that, another problem in the crypto market is the quick profit mindset that is so hard to remove, which makes fundamental values tend to get plundered with price and exchange talks.

[Kemarit]

Like I said before countries who have nothing else to lose tend to move faster when it comes to cryptocurrency adoption as the reward is bigger than the economic risk they will had. Just by simply putting up their own regulation they will soon attract crypto related investments in their country which in a faster pace compared to countries who are conservative with cryptos. They are just following the footsteps of other successful island countries out there and I think the rest of the countries who barely have any economical risk should also follow.

I think they know that it can be "make-or-break" for them, a game changer, that's why they easily jump on the bandwagon and take advantage of companies seeking nations that is friendly to crypto's. They can offer tax leniency and in return could see lot of ICO project's using Bahamas as their HQ. But they needed to draft a good regulations (could even look at Malta), filter out those companies so that any attempts to scam could be eliminated.

[hugeblack]

Bahamas plans to introduce strong regulations for token and cryptocurrency sales
The Securities Commission officially filed a draft of the bill back in March seeking to regulate token offerings that are not considered securities.

The content of regulation varies from what others think of it: It is assumed that this regulatory situation is not for the sake of "recognition of these coins as legal trending" but securities or payment gateway of bills.

If that is the case, it will not make a difference. It is a kind of soft regulation to define those currencies and it will not have the same effect as in Malta.

[Slow death]

Bahamas plans to introduce strong regulations for token and cryptocurrency sales

they " plans "... I wonder how long it had taken them to pass these laws, and what kind of laws are these?

I was reading about the project: https://static.coindesk.com/wp-content/uploads/2019/05/Draft-DARE-Bill-for-Consultation-f-2Apr19.pdf

I do not know if this is true or not, but I saw this:

9. Registration of Initial Token Offering.       
(1)  An issuer shall – 
(a) apply to a sponsor for the registration of an initial token offering by – 
(i)   completing the Form prescribed in Part I of the First Schedule;

(ii)   paying the relevant application fee; and
             (iii)   paying the prescribed fee; and
(b) ensure that its application for registration has been submitted to a sponsor no later
than 45 days prior to the commencement of the initial token offering.
             (2) Where a sponsor preliminarily approves an application to register an initial token offering, it
shall  promptly  submit  the  material  particulars  of  that  offering  along  with  the  prescribed  fee  to  the
Commission, but such submission shall be no later than 10 days of the receipt of the application. 
7
(3) For the purpose of subsection  (2),  the material particulars which must be submitted to the
Commission shall include but not be limited to the following documents – 
(a) the offering memorandum;
(b) a certificate of compliance by the sponsor or an appropriately qualified Bahamian local
counsel  and  attorney  appointed  by  the  sponsor  attesting  that  the  issuer’s  offering
memorandum is in compliance with this Act; and
(c) such other information and documentation as the sponsor relied upon for the purpose of
determining the application.
               (4)  Where, following a review of the documentation submitted by the sponsor, the Commission
does  not  object  to  the  sponsorship  application,  the  sponsor  shall  thereafter  register  the  initial  token
offering.
(5) Where a sponsor fails to submit all required documents within the prescribed time, the
sponsor shall pay a penalty of $500 for each day which elapses thereafter until the documents have been
submitted to the Commission.

Application for Registration as a Digital Asset Business
Item 1 ‐ Name of Applicant 
State the full legal name of the Applicant. 
Item 2 ‐ Type of Application 
State what category of digital asset business the Applicant is applying for registration in. 
Item 3 ‐ Full Business Contact Details of Applicant 
State the Applicant's principal business address and provide email addressees), telephone numbers and
fax numbers. If the Applicant operates at more than one address in The Bahamas, provide details for each
office. 
Item 4 ‐ Full Details on Security Holders, Directors and Officers 
Provide completed Form 4 for each security holder,' director and officer of the Applicant. 
If the securities of the Applicant are traded on a securities exchange in any jurisdiction, provide full details
of the listing

I wonder how many exchanges will go to Bahamas and how many ICOs will be created in the Bahamas 

[shamc]

Well i guess it's a good thing for regulation to prevent ICO scammers from killing off newbies who wish to join crypto. I expect more liberal countries to follow suit, panama can also do the same thing as they are known as a safe haven