The Tribune

By YOURI KEMP

Tribune Business Reporter

ykemp@tribunemedia.net

The deputy prime minister yesterday hailed The Bahamas' efforts to regulate the fast-evolving financial technology (Fintech) industry as “bold” and “forward thinking".

K Peter Turnquest, speaking at a Securities Commission-organised webinar, said: “The Digital Assets and Registered Exchanges Bill 2020, referred to as the DARE Bill, will regulate the issuance, sale and trade of digital assets.

"The Emergent Technologies Bill 2020 will regulate emergent technology arrangements and services, and the Financial Services and Corporate Providers Bill 2020 will bring certain virtual assets service providers under its scope.”

It is expected that these pieces of legislation will be debated by the House of Assembly when it meets next Wednesday, with the so-called DARE Bill representing two years' worth of work by the Securities Commission and Bahamian financial services industry to develop an appropriate regulatory regime for crypto and digital assets and the businesses that use them.

“The proposed legislation provides a regulatory framework," Mr Turnquest added. "It aims to facilitate innovation, particularly technological innovation in financial services. This creates opportunities for digital-based entrepreneurship, and investment in employment opportunities in a variety of soundly-regulated financial products and services for consumers."

Mr Turnquest said COVID-19's impact, as well as Hurricane Dorian, meant The Bahamas needed to focus on sustainable opportunities to diversify its economy and make it more resilient. He added that the DARE Bill was designed for this purpose, introducing a regulatory regime that meets international best practices and standards.

The deputy prime minister, though, acknowledged that "there is no silver bullet to replace" tourism as he conceded that "large-scale diversification is a long-term project". Mr Turnquest said: "It is imperative for us to continue the process of diversification to ensure the resilience of the system, and the possibility to survive not only economic downturns but also exogenous shocks.

"This means a lot of things like creating the opportunities, and access to opportunities for Bahamians, within the current economic structure as well as taking bold strides to create new industries, create new career opportunities, boost productivity, promote and spur economic growth.

“The legislation being discussed today is an example of the bold, forward-thinking needed, and it aims to accomplish these goals," he continued. "The framework, and the implementation of the legislation governing digital assets and financial technology, will establish the legal infrastructure for innovative opportunities within the fin-tech space.

"It will set the standards for fair competition among industry players, and protect consumers in technology services as well as investors in a manner compliant in international regulatory expectations.

"In 2020 we have embraced a role that is increasingly digital in nature. Extensive cross-border transactions are resulting in a constant integration in emerging technologies and traditional finance, as a result pushing regulators to develop guidelines that facilitate innovation and still fulfill the function of regulation."