Regulatory Bodies
Regulatory body data collection in progress for Bahamas. Our AI research workers are actively gathering this information.
Operating Models
0/9 verdictsCan specific business models operate in Bahamas? Each card answers the operational question for one kind of operator. Curated cells reflect counsel-grade review; AI-generated cells should be confirmed before relying on them.
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Primary Legislation
| Law / Regulation | Year | Scope |
|---|---|---|
| **AML/KYC**: Mandatory compliance with AML/CFT, including risk assessments, repo | 2018 | **AML/KYC**: Mandatory compliance with AML/CFT, including risk assessments, reporting violations, KYC procedures; govern... |
| submit incorporation documents/fees; IBC Act 2020 applies | 2020 | **Incorporate legal entity**: Register an IBC via Registrar of Companies (submit incorporation documents/fees; IBC Act 2... |
| **DARE Act 2024**: Core law (Parts II/III, Sec. 9, 18-21, 33-35); available via | 2024 | **DARE Act 2024**: Core law (Parts II/III, Sec. 9, 18-21, 33-35); available via SCB website: https://www.scb.gov.bs/legi... |
| DARE Act | 2020 | The Digital Assets and Registered Exchanges Act (DARE Act) was enacted in 2020 (not 2024), and it regulates token issuan... |
| **IBC Act 2020**: Company incorporation; https://www.scb.gov.bs/legislation/. | 2020 | **IBC Act 2020**: Company incorporation; https://www.scb.gov.bs/legislation/. |
| The Bahamas' Approach to the Regulation of Digital Asset Businesses | 2023 | SCB Guidance: "The Bahamas' Approach to the Regulation of Digital Asset Businesses" (PDF): https://www.scb.gov.bs/wp-con... |
| Bahamas supporting laws include the Proceeds of Crime Act (as amended), Anti-Ter | 2018 | Bahamas supporting laws include the Proceeds of Crime Act (as amended), Anti-Terrorism Act (as amended), Financial Trans... |
| Earlier developments: Draft DARE Bill 2019 and Central Bank Discussion Paper (No | 2019 | Earlier developments: Draft DARE Bill 2019 and Central Bank Discussion Paper (November 2018).[1][6] |
Licensing Requirements
**Exchanges**: Trading, exchanging cryptocurrencies (fiat-to-crypto, crypto-to-crypto, centralized/decentralized), derivatives, options, broker-dealer services[3][5].
**Custody providers**: Custodial services using encrypted keys, wallet services, administration of crypto portfolios, staking[3][5].
**Payment processors**: Accepting payments in digital assets, token issuance/ICOs, transactions on behalf of clients[3].
**Capital**: Minimum requirements vary from **$150,000 to $500,000** (exact amount assessed case-by-case by SCB based on business model and risks)[2].
**AML/KYC**: Mandatory compliance with AML/CFT, including risk assessments, reporting violations, KYC procedures; governed by DARE Act (Part III, Sec. 33-35), Comprehensive Review Update Policy, Digital Assets and Registered Exchanges Rules, Anti-Terrorism Act 2018 (ATA), Financial Transactions Reporting Act 2018 (FTRA), Proceeds of Criminal Activity Act[3][1][2].
**Local presence**: Incorporation as an **International Business Company (IBC)** required, with a registered office/agent in the Bahamas; appointment of local compliance officer, directors, and senior management subject to fitness/propriety evaluation[1][2][3].
Other: Corporate governance standards, risk management, technology security, reporting/documentation, operational insurance, data protection[2][4].
**Incorporate legal entity**: Register an IBC via Registrar of Companies (submit incorporation documents/fees; IBC Act 2020 applies)[1][2][3].
**Prepare documents**: Business plan, proof of capital, director/shareholder details (fitness/propriety checks for directors, CEO/CFO/COO, compliance officer, MLRO, key shareholders), AML/KYC policies, governance/risk management frameworks[2][4].
**Secure local elements**: Registered office/agent, appoint compliance officer[2].
**Submit to SCB**: Complete application with fees (**$3,000 application fee, $10,000 annual fee**, plus others); SCB reviews for compliance[1][4].
**Approval and ongoing**: SCB authorizes specific services; no expansion without re-approval. Timeline not fixed but involves comprehensive evaluation[4][6].
**DARE Act 2024**: Core law (Parts II/III, Sec. 9, 18-21, 33-35); available via SCB website: https://www.scb.gov.bs/legislation/.
The Digital Assets and Registered Exchanges Act (DARE Act) was enacted in 2020 (not 2024), and it regulates token issuance, exchanges, custodians, stablecoins, NFTs, staking, DeFi platforms, and requires AML/CFT compliance, with licensing mandates for Digital Asset Service Providers (DASPs).
**IBC Act 2020**: Company incorporation; https://www.scb.gov.bs/legislation/.
SCB Guidance: "The Bahamas' Approach to the Regulation of Digital Asset Businesses" (PDF): https://www.scb.gov.bs/wp-content/uploads/2023/04/The-Bahamas-Approach-to-the-Regulation-of-Digital-Asset-Businesses.pdf[8].
**Digital Assets and Registered Exchanges Act, 2024 (DARE Act)**: Enacted in 2024, it regulates token issuance, exchanges, custodians, stablecoins (with reserve backing and audits under Section 49), NFTs, staking, DeFi platforms (Sections 5, 15, 33), and requires AML/CFT compliance (Sections 18-21, 33-35).[2][3][4][5]
Earlier developments: Draft DARE Bill 2019 and Central Bank Discussion Paper (November 2018).[1][6]
Travel Rule
**Digital Assets and Registered Exchanges (DARE) Rules**: Core rules applying AML/CFT/CPF to DABs, including Travel Rule compliance. [https://www.scb.gov.bs/wp-content/uploads/2023/04/The-Bahamas-Approach-to-the-Regulation-of-Digital-Asset-Businesses.pdf][5]
**Proceeds of Crime Act 2018 (POCA)**, **Anti-Terrorism Act 2018 (ATA)**, and **FCSPA Rules 2019**: Integrate DABs into broader framework. [5]
Tax Reporting
Individuals and businesses must comply with anti-money laundering (AML) and counter-financing of terrorism (CFT) regulations[1].
Businesses (e.g., crypto exchanges or service providers) follow general financial reporting, including annual license fees for International Business Companies (IBCs), but no profit or income tax filings[4].
Crypto firms need Securities Commission of The Bahamas (SCB) approval under the Digital Assets and Registered Exchanges (DARE) Act 2024 for activities like token issuance, exchanges, custody, or staking[4][7].
**Securities Commission of The Bahamas (SCB)**: Oversees digital assets under DARE Act. https://www.scb.gov.bs/
**Central Bank of The Bahamas**: General financial regulation; no crypto tax guidance. https://www.centralbankbahamas.com/
**Department of Inland Revenue**: Handles general taxes (VAT, stamps); confirms no income/CGT. No specific crypto page; see general info at https://www.bahamas.gov.bs/wps/portal/public/gov/government/agencies/department%20of%20inland%20revenue/
Custody Requirements
Custody regulation data collection in progress.
Stablecoin Regulation
Stablecoin regulation data collection in progress.
Securities Classification
Securities classification data collection in progress.
Sanctions & Restrictions
Sanctions data collection in progress.
Enforcement Actions
No verified facts yet. 5 unverified fact(s) in explorer
Research & Articles
Regulatory Forecast
high confidenceLikely enforcement action expected around 2026-04-18
Based on 21 historical regulatory events for Bahamas, with increasing regulatory activity.
Recent Updates
**Entity Targeted:** FTX Trading Ltd. and Samuel Bankman-Fried (CEO and co-founder)
**Entity Targeted:** FTX Trading Ltd. and Samuel Bankman-Fried (CEO and co-founder)
**Penalty Amount:** Not specified in available results
**Penalty Amount:** Not specified in available results
**Outcome:** FTX filed for bankruptcy after a spike in customer withdrawals exposed an $8 billion shortfall in accoun...
**Outcome:** FTX filed for bankruptcy after a spike in customer withdrawals exposed an $8 billion shortfall in accounts[3]. The SEC charged Bankman-Fried with orchestrating a scheme that defrauded equity investors; FTX had raised more than $1.8 billion from investors, including approximately $1.1 billion from about 90 U.S.-based investors[1]. The Securities Commission of the Bahamas subsequently froze assets of one of FTX's subsidiaries[3].
**Digital Assets and Registered Exchanges Act, 2024 (DARE Act)**: Enacted in 2024, it regulates token issuance, excha...
**Digital Assets and Registered Exchanges Act, 2024 (DARE Act)**: Enacted in 2024, it regulates token issuance, exchanges, custodians, stablecoins (with reserve backing and audits under Section 49), NFTs, staking, DeFi platforms (Sections 5, 15, 33), and requires AML/CFT compliance (Sections 18-21, 33-35).[2][3][4][5]
Earlier developments: Draft DARE Bill 2019 and Central Bank Discussion Paper (November 2018).[1][6]
Earlier developments: Draft DARE Bill 2019 and Central Bank Discussion Paper (November 2018).[1][6]
**Central Bank of The Bahamas**: General financial regulation; no crypto tax guidance. https://www.centralbankbahamas...
**Central Bank of The Bahamas**: General financial regulation; no crypto tax guidance. https://www.centralbankbahamas.com/
Originating VASPs: Identify originator, obtain/verify required data, screen for sanctions, retain records, and share ...
Originating VASPs: Identify originator, obtain/verify required data, screen for sanctions, retain records, and share with beneficiary VASPs.[2]
No mandated technical solution (e.g., interoperability challenges persist globally).[2] Sanctions screening against l...
No mandated technical solution (e.g., interoperability challenges persist globally).[2] Sanctions screening against lists like OFAC, UN, EU is required before transactions.[4]
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