Bahamas Passes Crypto Law Designed to Prevent FTX, Terra Disasters

The BahamasThe Digital Assets and Registered Exchanges Act 2024 (known as This includes requirements to maintain “appropriate procedures” that keep digital assets “separate and insulated” from the business’s estate as well as segregating holdings from “other non-client digital assets.”The collapse of FTX was partially the result of DARE 2024 also introduces a “disclosure regime” which requires staking services to provide key information about the staking process, including how the asset is being staked, the rewards to be expected, and any potential penalties the client may face.Stakingwhich seeks to define stablecoins and regulate reserve assets. This includes requiring stablecoin providers to report their reserve assets and prohibiting algorithmic stablecoins.This is likely due to the demise of The collapse of Terra wrought a The Bahamas has introduced a number of other provisions in DARE 2024, including expanding the definition of “digital asset activities” to include staking services and standards that address conflicts of interest with third-party relations. This move comes as The Bahamas aims to become the leader of digital asset regulation, per a