The Bahamas force stricter crypto rules according to the FTX core melt (report)

The Bahamas force stricter crypto rules according to the FTX core melt (report)

reported to strengthen the Bahamas' security commission, the domestic regulatory framework for cryptocurrencies after the collapse of FTX, which was based in the island state. Such a change will be the ban on algorithmic stable coins and data protection tokens.

on the Bahamas also lived Sam Bankman-Fried (SBF)-the former CEO of FTX-before his arrest. He currently lives in his parents' house in California and is waiting for a process that will find whether he has made it guilty of fraud.

More care according to the failure

The crash of the once leading cryptocurrency exchange FTX in November was one of the darkest events in the industry last year. The company, which had a value of over $ 30 billion at a time, showed serious liquidity problems and could not meet customer withdrawal applications. She applied for bankruptcy protection and triggered colossal investor losses.

The decline prompted many strictly stricter rules for the sector to prevent another dark case scenario. According to a Bloomberg report, the financial supervision of the Bahamas took steps in this direction.

It intends to oblige companies for digital assets to report their activities. The new legislation will deal with the stitching and insist that the users disclose their process of pledging coins to support the operation of blockchains.

The Securities Commission of the Bahamas will also enforce stricter monitoring of the stock exchanges and prohibit algorithmic stable coins and data protection tokens.

"The draft law gives the Commission the opportunity to write annual activities for companies with digital assets," it says.

The FTX disaster is not the only reason why the regulatory authority has issued new laws. In it, the efforts of the European Union, Hong Kongs and New York's authorities were outlined in it, which recently stated their intent to protect crypton users by introducing stricter regulatory framework.

The residents of the Bahamas can give feedback on the proposed rules by May 31.

The Bahamas: The short-lived paradise of SBF

The picturesque island state has recently gained popularity, but this time not because of its turquoise water and sandy beaches. FTX moved his headquarters from Hong Kong to the Bahamas in September 2021 and described the Caribbean country as a crypto hub.

But the collapse of the stock exchange in the past year and the rumors that SBF and his colleagues Organizes Investors left a dark spot on the island.

The police arrested The 31-year-old in his place of residence on the Bahamas almost a month after the company has dropped. He spent a week in a local prison facility before he was delivered to the United States.

The American authorities surprisingly allowed him to stay in the house of his parents in the California Palo Alto under a bail of $ 250 million. SBF, who has not guilty of the allegations of fraud against him, will do this Face Attempt in early October.

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