With a view to turning people of crypto space into the jurisdiction of choice for blockchain startups the Bahamas’ securities regulator is attempting hard to get a new structure for token projects. The organization filed a draft of the new bill which regulated token offerings shows a procedure for registering such offerings and information authorities and investors on the details of a token sale. After this is done the submission procedure of the draft to public consultations was also done. The regulator of Bahaman is accepting a lot of comments. If this step is once done then it will be passed to the government and then to the parliament.
Many other island nations also did the same thing like publishing various legislations for crypto projects. For example mentionable is Malta. The government of Malta passed three laws in June. By those laws they allowed crypto trading in the country and scored a big win in the jurisdiction competition when Binance announced it was opening an office there in March.
They began receiving a lot of interest in the jurisdiction for the registration of tokens in late 2017 and then they started to benchmark. It was the view of Christina Rolle (executive director of the commission). For inquiring the token project looking for a jurisdiction to register, other regulatory bodies of the state were being informed. Only then the commission decided to provide guidance. On the other hand, the criteria of distinguishing security and utility are expected to be ready before the end of May. There is a possibility for those tokens which are representing equity shares of exemption from the security law of the country. Many companies have been received no-action letter which sought the commission for clarity.
Inside the bill?
Token projects are compelled to disclose a memorandum with a description of the project where anyone facilitating an ICO on the Bahamas, wallet providers, token issuers can be applicable to the new regulation. The memorandum should be updated in a timely manner for incorporating any significant change. Companies should also secure enough insurance coverage for their projects. The issuer should expose if any information having negatively affect to interests of token buyers. According to the document if the company can’t do so they it needs to provide a fine of 10,000 Bahamian dollars.
For the evaluation of the project, a company would have to give a detailed technical and financial description of the token issuance. For sponsorship of the registration, an attorney needs to be hired that will communicate with the regulator. Registrants will be liable to the Bahamas’ Data Protection Act, Financial Transactions Reporting Act, Financial Transactions Reporting Regulations and Financial Intelligence Regulations. Failure to adjust with the law will cause a fine of $500,000 or imprisonment up to five years.