Part of the procedure established in the bill is to inform both authorities and investors about all the details of a sale token. In addition, it is sought to avoid that the information provided is false
The Bahamas’ Securities Regulator recently issued a report in which it notified that its new bill will include regulations for the sale of tokens or Initial Coin Offering (ICOs) in the territory.
According to the Securities Commission of the country, the regulations that the government body proposes indicate the necessary procedures to carry out the sales of tokens, from the registration through the pertinent organizations, to the stages subsequent to the sale.
In this regard, the Securities Commission of Bahamas presented a draft of the new law where it regulates the tokens or offers that are not considered as valuables. Part of the procedure established by the bill is the registration of the offers and inform both authorities and investors about the details of a sale token.
Before this law is enacted, the public consultation process that began on March 27th and will continue until May 28th has been a success, according to the Executive Director of the Securities Commission, Christina Rolle. Soon, probably for the autumn of this 2019, the bill will pass to instances such as the National Parliament for possible final approval.
“At the end of 2017 we started to have a lot of interest in registering tokens. When we observe events around the world, we consider that we should establish a new regulatory framework”, said Rolle.
Regulators expect to see positive results if the bill is implemented, especially since it will affect both tokens promoters, including service providers (such as digital portfolios or exchanges), as well as any other entity or individual involved in the sale.
Additionally, the regulations urge partners in the process to publish a memorandum of understanding, which includes the specifications to consider, fundraising campaigns and any changes made in the process.
One of the last sections of the law emphasizes that those who fail to comply with the provisions must pay a fine of $ 500,000 or five years in prison, depending on the seriousness and the particularities of the case. If file issuers provide misleading information in their registration documents, they risk receiving up to ten years in prison.
This measure, which is already under development, is part of the initial plan of The Bahamas looking to position itself internationally as a favorable territory for the development of new technologies in the decentralized sector and a friendly country with blockchain technology.
Curiously, other island nations have recently introduced different bills with the aim of attracting investors and developing crypto-projects. Malta, which is recognized as the “blockchain island”, will have the first record of companies based on blockchain technology. In April, the Malta’s Financial Services Authority (MFSA) granted licenses to 14 companies to promote the growth of the cryptocurrency sector.
In Bermuda, a new law allows projects to conduct the Initial Coin Offering (ICOs) to request their rapid approval, whilst in Gibraltar, a new legislation that allows the issuance and negotiation of tokens is underway.
By María Rodríguez