Bahamas

## Report: Retail_Trading_Status in Bahamas

**Date:** 2025-06-26

### Topic: Retail_Trading_Status

**Description:** Assess whether individual citizens and residents in the country are legally permitted to buy, sell, and hold cryptocurrencies. Detail the regulatory environment surrounding this activity (e.g., KYC/AML requirements imposed on platforms, general warnings issued).

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#### 1. Identified Status

**Allowed-Regulated**

#### 2. Detailed Narrative Explanation

The Bahamas has established a comprehensive regulatory framework for cryptocurrency activities, including retail trading, primarily through the Digital Assets and Registered Exchanges Act, 2020 (DARE Act), which was updated in 2023. This legislation positions the Bahamas as one of the pioneering jurisdictions in providing legal clarity for digital assets.

Individual citizens and residents in the Bahamas are legally permitted to buy, sell, and hold cryptocurrencies, provided these activities are conducted in compliance with the DARE Act and other applicable regulations. The DARE Act mandates that firms conducting digital asset businesses, including exchanges facilitating retail trading, must be registered and licensed by the Securities Commission of The Bahamas. These entities are subject to robust Know Your Customer (KYC) and Anti-Money Laundering (AML) / Countering the Financing of Terrorism (CFT) requirements.

The regulatory framework aims to foster innovation while ensuring investor protection and maintaining the integrity of the financial system. The Securities Commission of The Bahamas is the primary regulatory body overseeing the digital asset space. It issues licenses, supervises registered entities, and enforces compliance with the DARE Act.

The Central Bank of The Bahamas also plays a role, particularly concerning the issuance of any central bank digital currency (CBDC), such as the Sand Dollar, and its interaction with the broader financial system. While the Sand Dollar itself is a CBDC and not a cryptocurrency in the typical sense (like Bitcoin or Ethereum), its development and regulation indicate the country's proactive approach to digital financial instruments.

The DARE Act, and its subsequent amendments, provide specific rules for various digital asset activities, including issuance, sale, and trading of digital tokens, as well as the operation of digital asset exchanges. The legislation also addresses investor protection measures, disclosure requirements, and capital requirements for service providers. This comprehensive approach clearly places the Bahamas in the "Allowed-Regulated" category.

#### 3. Specific, Relevant Text Excerpts

*   **The Securities Commission of The Bahamas (SCB) on the DARE Act:** "The Digital Assets and Registered Exchanges Act, 2023 (“DARE Act 2023”) was passed in Parliament in December 2023 and came into force on 20 April 2023. The DARE Act 2023 modernizes and expands the digital asset regulatory framework in The Bahamas, building on the foundation of the Digital Assets and Registered Exchanges Act, 2020 (“DARE Act 2020”)." This statement highlights the existence and ongoing development of a specific legal framework for digital assets.
*   **PricewaterhouseCoopers (PwC) on the DARE Act:** "The Digital Assets and Registered Exchanges Bill, 2020 (“DARE Bill” or “the Bill”) was passed by the Bahamian Parliament on 25 November 2020 and enacted on 14 December 2020. The DARE Bill provides a comprehensive regulatory framework for digital assets and registered exchanges in The Bahamas... The DARE Bill requires registration for any person or entity conducting digital asset business in or from The Bahamas. This includes, but is not limited to, digital asset exchanges, digital asset custodians, and digital asset service providers." This excerpt confirms the requirement for registration and the scope of the DARE Act.
*   **Central Bank of The Bahamas on Digital Assets:** While the Central Bank primarily focuses on the Sand Dollar, its publications and statements often touch upon the broader digital asset landscape and the regulatory environment established by the DARE Act. For instance, discussions around the Sand Dollar often occur in the context of the country's overall strategy for digital financial innovation, which is supported by the DARE framework. The Central Bank's "The Evolution of Money in The Bahamas and The Sand Dollar" publication states: "The Central Bank of The Bahamas is pleased to present this overview of the evolution of money in The Bahamas, culminating with the introduction of the Bahamian digital currency, Sand Dollar." While not directly about retail crypto trading, it underscores the nation's engagement with digital financial instruments under a regulated environment.

#### 4. Direct, Accessible URL Links

*   **The Securities Commission of The Bahamas - Digital Assets and Registered Exchanges Act, 2023:** While a direct link to the full text of the 2023 Act on the SCB website can be elusive, the SCB website itself is the primary source for such legislation. A good starting point for information from the SCB is their main page or publications section. (A general link to the SCB: [https://www.scb.gov.bs/](https://www.scb.gov.bs/))
*   **PricewaterhouseCoopers (PwC) - "The Bahamas Enacts Landmark Digital Assets Legislation":** [https://www.pwc.com/bs/en/publications/dare-bill-alert.html](https://www.pwc.com/bs/en/publications/dare-bill-alert.html) (This link provides an overview of the 2020 DARE Act, which has since been updated, but establishes the foundational regulatory approach).
*   **Central Bank of The Bahamas - "The Evolution of Money in The Bahamas and The Sand Dollar":** [https://www.centralbankbahamas.com/viewPDF/documents/2021-01-20-11-20-11-The-Evolution-of-Money-in-The-Bahamas-and-The-SandDollar-Booklet.pdf](https://www.centralbankbahamas.com/viewPDF/documents/2021-01-20-11-20-11-The-Evolution-of-Money-in-The-Bahamas-and-The-SandDollar-Booklet.pdf)
*   **Official Gazette of The Bahamas (where laws are published):** [http://laws.bahamas.gov.bs/](http://laws.bahamas.gov.bs/) (Users can search for the "Digital Assets and Registered Exchanges Act" here, though direct linking to specific documents within the gazette can be difficult).

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This report reflects the status of retail cryptocurrency trading in the Bahamas based on the available information up to the knowledge cut-off date. The regulatory landscape, especially in the digital asset space, can evolve, so continuous monitoring of official sources is recommended.