Is crypto legal in Bahamas? Rules & regulation (2026)

Legal framework

Digital Assets and Registered Exchanges Act, 2024 (DARE Act 2024), administered by the Securities Commission of The Bahamas (SCB); builds on DARE Act 2020.

Status by sub-area

• Stablecoins

  In force

  Stablecoin issuance is a regulated Digital Asset Business under DARE 2024: full reserve backing, whitepaper, custody, segregation and redemption rules apply; algorithmic stablecoins are prohibited.

• Exchanges / VASP

  In force

  Digital-asset exchanges and other Virtual Asset Service Providers must be registered with the SCB and comply with fit-and-proper, real-time reporting and investor-protection duties under DARE 2024.

• Token Offerings

  In force

  Public offerings of utility tokens, security tokens and stablecoins require SCB approval, with whitepaper disclosures and fit-and-proper standards for issuers.

• Custody

  In force

  DARE 2024 sets a dedicated custody regime: segregation of client assets, client agreements/disclosures, incident policies, annual independent audits and regular client statements.

• DeFi

  Partial

  DARE 2024 does not explicitly regulate DeFi. Mere development and dissemination of software is out of scope, but activities conducted 'by way of business' such as staking, node services and virtual-asset lending are regulated.

  Still pending: DARE 2024 enacted but implementing guidance on DeFi scope and edge cases still pending

• Tax

  None

  The Bahamas imposes no capital gains tax, income tax or VAT on crypto purchases, sales or trading. Crypto activity is tax-neutral, though the government has signalled a possible future review.

Key points: crypto & digital assets in Bahamas

1. 01Comprehensive digital-asset law in force

   DARE Act 2024 came into force on 29/30 July 2024, replacing DARE 2020, and expands scope to advisory, management, derivatives, staking and node services.

   scb.gov.bs laws.bahamas.gov.bs

2. 02Securities Commission is the regulator

   The Securities Commission of The Bahamas (SCB) registers and supervises Digital Asset Businesses (DABs), sets fit-and-proper standards, and enforces disclosure/financial-reporting duties.

   scb.gov.bs scb.gov.bs

3. 03Stablecoins regulated; algorithmic stablecoins banned

   Fiat/asset-backed stablecoins must be fully reserve-backed, disclose stabilisation mechanics via whitepaper, and meet custody/segregation/redemption rules; algorithmic stablecoins are expressly prohibited.

   scb.gov.bs charltonsquantum.com

4. 04Exchanges and custodians licensed with investor-protection duties

   Digital-asset exchanges must meet real-time transaction reporting and operational-control standards; custodians must segregate client assets, run annual independent audits and issue asset statements.

   scb.gov.bs xreg.consulting

5. 05Nuanced DeFi treatment

   DARE 2024 does not explicitly cover DeFi; mere software development is out of scope, but staking-as-a-business, node services and virtual-asset lending conducted by way of business are regulated activities.

   charltonsquantum.com xreg.consulting

6. 06Tax-neutral for crypto gains

   The Bahamas has no capital gains tax, income tax or VAT on the purchase, sale or trading of digital assets; VAT does not apply to crypto transactions, though the government has flagged possible future review.

   thenassauguardian.com charltonsquantum.com

Timeline of decisions

1. 30 Jul 2024Law · official
   DARE Act 2024 Enacted: Second-Generation Crypto Law

   Parliament passed the Digital Assets and Registered Exchanges Act 2024, replacing the 2020 law. It added custody services, staking, derivatives, and advisory activities to the regulatory perimeter; banned algorithmic stablecoins; introduced a first-of-its-kind staking disclosure regime; and tightened investor-protection obligations on exchanges.

   Securities Commission of The Bahamas

2. 1 Apr 2023Guidance · official
   SCB Publishes DARE Bill 2023 for Public Consultation

   In the wake of the FTX collapse, the Securities Commission released a revised draft DARE Bill proposing stricter proof-of-reserve, stablecoin, and exchange requirements. Stakeholder comments from this consultation directly shaped the final DARE 2024 legislation.

   Securities Commission of The Bahamas

3. 29 Dec 2022Enforcement · official
   SCB Applies to Supreme Court for Directions on Seized FTX Assets

   The Securities Commission petitioned the Bahamas Supreme Court for directions on transferring the seized US$3.5 billion in FTX Digital Markets assets to joint provisional liquidators and ultimately to creditors, establishing the legal mechanism for customer recovery.

   Securities Commission of The Bahamas

4. 12 Nov 2022Incident
   FTX Collapse, SCB-Directed Asset Transfer Exposes Critical Security Gaps

   During FTX's bankruptcy, approximately $400 million in crypto was drained from FTX wallets in a disputed incident; the Securities Commission of The Bahamas acknowledged directing a separate transfer of ~$3.5 billion in digital assets to a government-controlled wallet. The episode exposed catastrophic cybersecurity deficiencies at FTX (keys stored in plaintext, no wallet inventory) and stress-tested Bahamian regulatory response capabilities under global scrutiny.

   BankInfoSecurity

5. 10 Nov 2022Enforcement · official
   SCB Freezes FTX Digital Markets Assets, Landmark Enforcement Action Exposes Regulatory Gaps

   The Securities Commission of The Bahamas froze the assets of FTX Digital Markets Ltd on 10 November 2022, suspended its registration, and appointed a provisional liquidator, one day before FTX filed for bankruptcy globally. The high-profile collapse of a Bahamas-domiciled crypto giant directly accelerated the push for the comprehensive DARE Act 2024 reforms and sharpened regulatory attention on emerging-technology oversight.

   Securities Commission of The Bahamas

6. 10 Nov 2022Enforcement · official
   Securities Commission freezes FTX Digital Markets and seizes US $3.5 bn in crypto assets

   Following FTX's Chapter 11 filing on 11 November 2022, the Securities Commission of The Bahamas suspended FTX Digital Markets' registration, stripped its directors of authority, appointed a provisional liquidator, and on 12 November transferred approximately US $3.5 billion in digital assets into SCB-controlled wallets for safekeeping, the largest single regulatory enforcement action in the country's financial history and a major test of the DARE Act 2020 framework.

   Securities Commission of The Bahamas

7. 20 Apr 2022Guidance · official
   Government Releases Policy White Paper on the Future of Digital Assets

   Prime Minister Philip Davis presented a national digital asset strategy paper to the House of Assembly, setting a vision through 2026 for expanding the DARE framework, attracting regulated crypto business, and building domestic expertise, published months before the FTX collapse undercut the ambition.

   Government of The Bahamas

8. 14 Dec 2020Law · official
   DARE Act 2020 Enters into Force: First Comprehensive National Crypto Law

   The Digital Assets and Registered Exchanges Act 2020 came into force, making The Bahamas one of the first jurisdictions globally to enact comprehensive legislation covering digital asset issuance, exchange, and payment services. The SCB was established as primary regulator; all VASPs must hold a physical presence in-country and meet FATF-aligned AML/CFT standards.

   Securities Commission of The Bahamas

9. 1 Dec 2020Law · official
   Digital Assets and Registered Exchanges (DARE) Act 2020 Enacted

   Parliament enacted the first DARE Act, making The Bahamas one of the earliest jurisdictions to establish a comprehensive regulatory framework for digital-asset businesses, requiring mandatory registration with the Securities Commission and imposing cybersecurity, AML/CFT, and systems-controls obligations on exchanges and token issuers.

   Securities Commission of The Bahamas

10. 20 Oct 2020Decision · official
    Sand Dollar CBDC Launched Nationally, World's First Live CBDC

    The Central Bank of The Bahamas rolled out the Sand Dollar across all islands, making The Bahamas the first country in the world to deploy a fully operational central bank digital currency. The Sand Dollar is legal tender pegged 1:1 to the Bahamian dollar, designed to expand financial inclusion across the remote archipelago.

    Central Bank of The Bahamas

11. 27 Dec 2019Decision · official
    Central Bank Launches Sand Dollar CBDC Pilot in Exuma

    The Central Bank began a live Sand Dollar pilot on Exuma to test CBDC infrastructure for a geographically dispersed population; the pilot was expanded to Abaco in February 2020, before the national rollout. This put The Bahamas at the global frontier of CBDC deployment.

    Central Bank of The Bahamas

12. 1 May 2018Decision · official
    SCB Forms Cross-Government Crypto Asset Working Group

    Following an initial SCB review of digital tokens in March 2018, a multi-agency Crypto Asset Working Group was established in May 2018 to develop a coherent national regulatory approach. This body produced the foundational analysis that led directly to the DARE Bill and Act.

    Securities Commission of The Bahamas

Sources

1. 1.scb.gov.bs/wp-content/uploads/2024/07/Media-Release-The-Bahamas-Introduces-Trans
2. 2.scb.gov.bs/dare/
3. 3.laws.bahamas.gov.bs/cms/images/LEGISLATION/PRINCIPAL/2024/2024-0040/2024-0040_1.pdf
4. 4.charltonsquantum.com/bahamas-pioneers-new-digital-asset-regulations-dare-act-2024-takes-ef
5. 5.charltonsquantum.com/bahamas-virtual-assets-regulation/
6. 6.xreg.consulting/articles/the-bahamas-enters-the-next-phase-of-crypto-market-regulatio
7. 7.thenassauguardian.com/business/bahamas-listed-in-new-report-as-top-tax-haven-for-crypto-inv
8. 8.charltonsquantum.com/wp-content/uploads/docs/bahamas-crypto-guide.pdf