Regulators from all over the world have been waking up to cryptocurrency regulation this year and it seems the Bahamas are the latest to open their eyes.
The Central Bank of the Bahamas (CBOB) has published a regulatory framework in preparations to integrate cryptocurrency-based assets into its financial services industry, according to the Nassau Guardian.
The framework seeks to address many of the regulatory challenges the CBOC currently associates with the use of cryptocurrencies such as tax evasion, market volatility, fraudulent initial coin offerings (ICOs), and anti-money laundering policies.
The CBOB believe the cryptocurrency industry’s approach to international regulation is too fragmented – making it difficult to “manage emerging risks in the fintech arena.”
As such, the CBOB is looking to implement a number of amendments to regulations recommended by the likes of the international monetary fund (IMF).
These amendments will require any business operating in, or from the Bahamas, to “demonstrate safe and sound business practices; show that they have systems in place to measure, monitor, and adequately control market and other risks; and ensure that they have in place auditable policies, practices and procedures to prevent the use of their services for criminal purposes.”
Anti-money laundering policies will also be compulsory.
Incidentally, this news comes in the same week that Thai authorities announced they would be regulating ICOs through a dedicated portal designed to improve security, reduce fraud, and help facilitate due diligence.