According to the Solidus website, Bahama is at the top of the list of Global Cryptocurrency Regulation (GCR) indexes edited by cryptocurrency security firm Solidus Labs and is committed to enabling a secure and regulated crypto market. increase.
The Bahamas was ranked 4.90 out of the GCR’s five-point scale.
The country’s Digital Assets and Registered Exchanges Act (DARE) has so far led FTX, one of the world’s largest cryptocurrency exchanges, into this jurisdiction, followed by other institutions.
FTX executives said they chose the Bahamas for a number of reasons published in the Solidus index.
“Bahama is high because it provides a comprehensive and progressive regulatory system, clear registration requirements, and a positive environment set by government actions and rhetoric to drive economic growth through the strong digital asset industry. It has been evaluated, “says Index Evaluation.
“In December 2020, the government established one of the few comprehensive regulatory frameworks for digital assets in the world.
“A groundbreaking law called the Digital Assets and Registered Exchanges Act (DARE) includes legal definitions of digital assets, exchange licensing and registration requirements, investor protection standards, and compliance in line with the Financial Behavior Task Force. Standards are included. (FATF) Recommendations on Anti-Money Laundering Measures and Related Principles of the International Securities Commission.
“In fact, in the latest Mutual Assessment Report (MER), the FATF noted that the Bahamas has made significant progress in addressing technical compliance deficiencies and has upgraded some of its national assessments of compliance requirements. The Bahamas is also the first country in the world to launch a national CBDC. [central bank digital currency], Sand dollar. “
Solidus said the exponential growth of cryptocurrencies and decentralized finance (DeFi) initiatives has spurred global growth in digital asset regulation. According to the company, GCR provides a snapshot of “where digital asset regulation is currently located, ranking key countries that are taking effective approaches to regulation that protect consumers and drive innovation.” It is said that it was developed for this purpose.
The GCR said there are countless reasons why top countries have been recognized in the field of digital asset regulation. This includes the government’s recognition of digital assets as legal. There are no total restrictions on the activities of digital assets. And its digital assets are actively involved by policy makers.
The GCR added that the higher jurisdictions also have comprehensive digital asset laws. It is implemented and in operation. Includes digital asset classification, registration / licensing requirements. Started market monitoring and prevention of market manipulation. Registration and licensing for multiple types of digital asset service providers. Efficient registration and licensing process. Digital assets also have anti-money laundering / combat terrorist financing (AML / CFT) requirements.