The Securities Commission of the Bahamas announced plans to strengthen its cryptocurrency laws in response to the collapse of cryptocurrency exchange FTX (CRYPTO: FTT), which had its headquarters in the Caribbean nation.
The new bill will introduce measures on stablecoins, proof-of-work mining and staking, and it could become "among the most advanced pieces of digital-asset legislation in the world," said Christina Rolle, executive director of the Bahamas regulator.
In 2020, the Bahamas passed the Digital Assets and Registered Exchanges Act, which regulated the use of cryptocurrencies.
Following the collapse of FTX, the country's regulators decided to tighten cryptocurrency laws.
FTX was founded by Sam Bankman-Fried and operated in the Bahamas until it fell apart in November 2021.
Bankman-Fried has been accused of siphoning off corporate funds to buy luxury villas in the Bahamas and is facing fraud charges brought by the U.S. Department of Justice.
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FTX's new management has criticized poor governance under his tenure, and there is a legal dispute with the Bahamas over jurisdiction.
The new bill will require digital-asset exchanges to have adequate systems and controls for their operations.
It will also introduce a comprehensive regulatory framework for stablecoins whose value is pegged to the U.S. dollar or another stable asset, after the collapse of Terra's TerraUSD stablecoin last year.
The bill also covers crypto services such as advice, derivatives, and staking, and includes oversight of non-fungible tokens.
With these measures, the Bahamas hopes to become a leader in digital-asset legislation.
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