The Bahamas Securities Commission has decided to introduce stricter rules for crypto businesses and tighten oversight of citizens' digital assets.
According to reports, the Bahamas regulator announced a new bill that prohibits the issuance and circulation of all types of algorithmic stablecoins in the territory of the Bahamas. The draft law also includes an expanded definition of digital asset companies, disclosure requirements for cryptocurrency wagers, and increased requirements for stablecoin issuers.
The decision was made in response to the collapse of cryptocurrency exchange FTX and is intended to minimize the risks associated with cryptocurrencies in the future.
The Bahamas was home to Sam Bankman-Fried, founder of cryptocurrency exchange FTX. FTX collapsed in November 2022 due to lack of liquidity and mismanagement of funds, followed by a large number of withdrawals by unsettled investors. This led to a massive payout in the cryptocurrency market.