The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The Bahamas “needs levitation devices” to rise above the rapidly-evolving digital assets space so that regulation lands wherever the “ground shifts”, a prominent banker is arguing.

Gowon Bowe, Fidelity Bank (Bahamas) chief executive, told a digital assets webinar that it was vital that this nation keep abreast of the industry’s innovation and creativity “if we are serious about being a major player in the sector”.

Describing the Government’s recently-unveiled Digital Assets Policy white paper as “an introductory statement, not a concluding statement”, he backed the Davis administration’s decision to set down “a marker” in terms of its policy objectives for the digital assets industry and how it sees the sector evolving.

Reiterating that regulators such as the Securities Commission are “not people’s priests” or “their caretaker”, Mr Bowe said supervisory efforts needed to focus on transparency, consumer education and the quality of information provided to investors.

Arguing that the Digital Assets and Registered Exchanges Act has “set the foundation” for supervising a fast evolving digital assets sector, he asserted: “If we are serious about being a major player we have to understand the ground underneath us is continually shifting.

“So we almost need to have levitation devices to allow us to levitate as the ground shifts underneath us and still land where that ground moves to.” Mr Bowe warned that if The Bahamas “doesn’t get it right and keep it right” when it comes to digital assets regulation, “the actual risk is monumental”.

Meanwhile, Christina Rolle, the Securities Commission’s executive director, said The Bahamas should “embrace” calls by the likes of the European Union (EU) for “best in class regulation” of the digital assets space provided this was based on principle as opposed to a “prescriptive” set of policies.

Asserting that there was no sign of any regulatory-related threat directed by the EU or Organisation for Economic Co-Operation and Development (OECD) towards The Bahamas’ digital asset ambitions, she said: “I’ve not heard any pronouncements from the EU with respect to this space apart from the statement made calling for global regulation. I’ve not heard anything from the OECD with respect to this space either.”

Only the Financial Action Task Force (FATF) has moved to strengthen its anti-money laundering and counter terror financing guidance for digital assets - something that The Bahamas is seeking to be re-rated on now following further recent reforms.

“I think it would be a bit premature for us to anticipate what I would consider to be an attack by any of these organisations,” Ms Rolle said. “I think we should embrace the EU call for global policies and global co-ordination in regulation. As long as those policies are principle-based and not prescriptive we should embrace them.

“I say that because we don’t want this space to be exposed to circumstances where certain regulators in certain jurisdictions have minimum standards for their framework while others are allowing Wild West circumstances. Any jurisdiction that wants to be best in class would support a minimum standard for regulation, and as far as the EU calling for that, it’s something that The Bahamas should embrace and support.

“I don’t think we should anticipate that we would be under any competitive threat by any of these organisations.”