Bahamas DARE Bill Clamps Down on Crypto After FTX Debacle

A bevy of sweeping changes to digital asset reform in the Bahamas is expected to take effect this quarter

article-image

max.ku/Shutterstock modified by Blockworks

share

The Bahamas’ securities watchdog has opened up a consultation period for the country’s Digital Assets and Registered Exchanges (DARE) Bill following months of FTX damage control.

The bill, which is expected to come into effect by the end of Q2, aims to be one of the most “advanced” pieces of digital asset legislation globally, according to a Wednesday statement.

New regulatory frameworks will be designed to ensure the Bahamian legislative regime is “current, proactive and compliant” with international standards, per the statement.

Specifically, the legislation seeks to bolster investor protections and increase risk management from industry-related firms while enhancing provisions for market innovation and development.

Strengthened measures for operating crypto exchanges, financial and reporting requirements  and stablecoin regulation will also be in focus. 

For those intending to operate an exchange in the country, businesses will be required to prove they have systems in place to handle the scale and nature of their activities.

DARE is also said to provide provisions on staking, advice on the management of digital asset activities and distributed ledger network nodes.

Sam Bankman-Fried’s bankrupt crypto exchange FTX was headquartered in the Bahamas. The firm, which filed for bankruptcy last November, was allegedly riddled in corruption and fraud, spurred by commingling and misappropriating user funds.

Changes to reporting requirements offer insight into the way in which regulators are viewing the fallout.

Required client disclosures, ongoing safekeeping practices and accessibility of digital assets will also be required by exchanges — a subtle nod to last year’s FTX debacle. 

The issuance of algorithmic stablecoins will also be “expressly” prohibited following lessons learned from the collapse of the Terra ecosystem in May 2022.

Finally, under DARE, NFTs will be categorized based on whether they are considered financial instruments or consumer assets.

Members of the public may participate in the consultation period which has already kicked off and is intended to close by May 31, 2023.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Javits Center North | 445 11th Ave

Tues - Thurs, March 24 - 26, 2026

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Unlocked by Template.png

Research

The march toward an interoperable and onchain-by-default internet depends on reliable messaging and value transfer across heterogeneous domains. Crosschain protocols now process >$1.3T in combined annual transfer volume and secure tens of millions of user interactions, yet no single design dominates.

article-image

The goal, per Santiago Santos, is to make crypto a relatable piece of tech for people who may not even understand it

article-image

Stripe stablecoin unit aims to operate under a federal charter enabling regulated stablecoin issuance and custody services

by Blockworks /
article-image

Will TradFi make crypto better or create more problems than it solves?

article-image

Subtle decisions by risk curators saved Aave from significant turmoil

article-image

The new Rootstock Institutional unit aims to connect professional investors to Bitcoin-native yield and liquidity strategies anchored in BTC’s security layer

by Blockworks /
article-image

DOJ files record civil forfeiture against more than 127,000 BTC linked to scam activity

by Blockworks /