YEREVAN (CoinChapter.com) — The Bahamas has launched the Digital Property and Registered Exchanges Act 2024 (DARE 2024), focusing on points that led to the failures of FTX and Terraform Labs. This new regulation focuses on digital asset custody, staking providers, and stablecoin oversight.
New DARE 2024 Legislation Enforces Asset Separation and Staking Transparency”
DARE 2024 requires companies to maintain buyer belongings separate from their very own and different non-client belongings. This separation is essential to forestall the type of asset mixing that contributed to the collapse of FTX. At FTX, commingled funds allowed Alameda Analysis to entry buyer belongings, which led to important monetary turmoil. The incident resulted in former CEO Sam Bankman-Fried being convicted of fraud and sentenced to 25 years in jail.
The legislation additionally imposes strict disclosure necessities on corporations providing staking providers. Companies should clearly clarify the staking course of, potential rewards, and any dangers concerned. Staking includes locking up cryptocurrency to help community operations, with the potential of incomes rewards. By mandating transparency, the legislation goals to make sure that prospects perceive the phrases and dangers related to staking.
Bahamas Implements Sturdy Stablecoin and Digital Asset Laws
DARE 2024 features a detailed framework for stablecoin regulation. It mandates that stablecoin suppliers disclose their reserve belongings and bans algorithmic stablecoins. This regulation follows the collapse of Terraform Labs’ UST stablecoin in 2022, which misplaced its worth and induced important market disruption. The brand new legislation seeks to forestall such instability by making certain that stablecoins are adequately backed and clear.
The act expands the definition of “digital asset activities” to incorporate staking providers and establishes requirements for managing conflicts of curiosity in third-party relationships. This complete method goals to cowl all important elements of the digital asset trade, offering a sturdy regulatory framework.
These rules, applied by The Bahamas Securities Fee, are a part of the nation’s effort to strengthen oversight and defend customers within the quickly evolving cryptocurrency market.
