The Central Bank of Bahamas (CBOB) has published proposed policies aimed to govern Cryptocurrency dealings in the island.

The white paper outlines the possible challenges affecting the industry as discussed by the International Monetary Fund (IMF). It further delves into means of combating the unethical and illegal financial practicises associated with cryptocurrencies.

Cryptos taxation

Like several other nations with cryptocurrency dealings, the Bahamas has to come up with a tax regime for cryptocurency trading. France recently made headlines over proposed amendment of the 2019 budget bill seeking to cut taxes on Bitcoin gains to 30%. To combat tax evasion practices, Bahamas in its proposed regulations discussed tax policies for the industry.

CFT and AML measures

The concern on fraud and money laundering was also discussed in the paper. These together with the possible use of cryptos to fund terrorism activities informed China’s decision to ban ICOs completely and discourage trading in cryptocurrency within its borders. Well, Bahamas is not going the China-way, instead of ordering termination of all crypto-related activities; the republic has chosen to regulate the sector.

Consumer protection

The paper further discusses measures of consumer protection. The paper clarifies that any crypto-related entity seeking to operate within the Island must demonstrate that “they have systems in place to measure, monitor, and adequately control market and other risks; and ensure that they have in place auditable policies, practices and procedures to prevent the use of their services for criminal purposes.”

The new set of regulations will protect investors and consumers interests preventing the groups from losing money through operators’ shady schemes.

National crypto

Early this year, the Bahamas’ Central Bank revealed plans to launch a national cryptocurrency to create efficiency in the country’s payment system. The announcement was made by the Bahamian deputy prime minister, K. Peter Turnquest during the Bahamas blockchain and Cryptocurrency week.

The nation is looking to be the cryptocurrency and blockchain hub of the Caribbean region. Plans are underway to digitize the government systems using blockchain solutions. This way the government will root out corruptions and boost transparency.

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