The Security Commission of the Bahamas is radically pushing for a new framework for token projects. The aforesaid project’s purpose - to turn this popular tourist destination into a blockchain startup hub.

The Regulator has recently provided a draft of the new bill that will provide regulations of token offerings that are not considered as securities. The new bill describes details of the procedure for registering such offerings and highlights the necessity to inform authorities and the investors about the sale of tokens.

Christina Rolle, the executive director of the commission, stated that the Commission received a lot of recommendations and comments and the period of consultation will likely be extended for another month, until May 28. After that, the document will be passed to the government and then to parliament, where the final decision will be made – whether to accept the new legislation.

THE BILL IN DETAILS

As it is stated in the bill, the updated regulation will apply to token issuers, wallet providers, exchanges and anyone who is enabling an initial token offering within the Bahamas territory.

The bill stimulates token projects to publish a full description of the project, state any form of changes in the offering and regularly update the memorandum, so as to notify the members of the public.

In the document it is stated that any information that can “reasonably negatively affect the interests” of token buyers should also be revealed by the emitter immediately, and the failure to do as prescribed will cost the company a fine of 10,000 Bahamian dollars ($10,000). Companies, planning to issue tokens, should also guarantee adequate insurance coverage for their projects.

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