Bahamas' Securities Commission to set rules for Token Offerings
The Securities Commission of the Bahamas is pushing for new regulations for the token offering; a move that would make the island a haven for blockchain startups especially those eyeing to offer ICOs. The commission wants tokens that are not categorized as securities regulated.
According to the bill proposed by the commission, developers ought to register and walk the authorities through on the nitty-gritties of any token sale. This will provide a form of protection for the investors since the authorities will have to scrutinize the token sale to ensure it is not a scam.
Also, the developers have to inform the investors without hiding anything from them.
Public participation in the draft
The draft has already been submitted to the public for scrutiny. It was actually released to the public between 27th and 28th of March, 2019.
According to the director of the Commission, Christina Rolle, the authority received too many comments from the public and it had to extend the consultation window before passing the bill on to the government.
If the government and the parliament approved the bill, the bill would start being implemented as early as autumn this year.
If the bill by the Securities Commission of the Bahamas succeeds, the country will enter the league of the likes of Malta, Bermuda, and Gibraltar, all of which are islands that have passed rules on token sale. For some of these islands, the introduction of these laws has really fostered business with most blockchain and cryptocurrency companies opening companies there. For example, Binance, one of the world’s largest crypto exchanges, announced that it was going to set up an office in Malta immediately after the island passed the laws.
What pushed the Bahamas to regulate tokens sale
According to the Securities Commission of the Bahamas, its director, the commission itself, as well as other players like the Ministry of Finance had been receiving immense pressure from investors to come up with regulations for blockchain projects seeing that the world is rapidly adopting blockchain technology.
Initially, any token entity that did not qualify as security was deemed illegal and most blockchain developers feared to start any business in the Bahamas. Rolle had to admit that the first thing that had to be looked into was how to distinguish between securities and utility tokens so that to enable authorities to differentiate between the two.
If the token sale laws are passed, some tokens that had been categorized as equity shares shall get relief by being exempted from the securities’ laws. Some companies like CoinDesk and PO8 are already enjoying the fruits after the commission assured them that it had suspended any enforcement action against them.