Is Crypto Legal In Bahamas?

Cryptocurrency is legal in the Bahamas and operates under a comprehensive regulatory framework established by the Digital Assets and Registered Exchanges Act 2024. This transformative legislation was passed into law in July 2024, building upon the foundation of the DARE Act 2020 and introducing comprehensive reforms to address the evolving cryptocurrency landscape (1). The Securities Commission of the Bahamas serves as the primary regulatory authority responsible for registration, licensing, and supervision of digital asset businesses, ensuring compliance with anti-money laundering and counter-terrorism financing laws.

The DARE Act 2024 encompasses a wider range of digital asset activities including advisory or management services, digital asset derivatives, staking services, and custodial wallet services. The legislation establishes enhanced investor protection requirements, a comprehensive stablecoin framework with clear definitions and reserve asset requirements, and robust custody standards that enhance protection of client interests (1). Digital asset exchanges must adhere to stringent systems and controls requirements to ensure transaction integrity and security, while the issuance of algorithmic stablecoins is expressly prohibited under the new framework.

"DARE 2024 represents a new standard in digital asset regulation and is a testament to our commitment to robust risk management. We have created a framework that not only focuses on investor protection, but also encourages responsible innovation."

The Central Bank of The Bahamas oversees supervised financial institutions exposed to digital asset activities through the Digital Assets Guidelines 2023, which establish governance, risk management, and prudential treatment standards (2). Supervised financial institutions must notify the Central Bank before engaging in digital asset activities and maintain comprehensive risk assessment frameworks incorporating liquidity, credit, market, operational, and money laundering risks. Digital assets are classified into three prudential categories based on characteristics and stabilization mechanisms, with specific capital requirements and exposure limits applied to ensure financial stability and proper risk management across the banking sector.

Source:
https://www.scb.gov.bs/wp-content/uploads/2024/07/Media-Release-The-Bahamas-Introduces-Transformative-Digital-Asset-Legislation-The-DARE-Act-2024.pdf
https://www.centralbankbahamas.com/viewPDF/documents/2023-12-12-11-01-36-Digital-Assets-Guidelines-2023.pdf

Last updated: 18-10-2025 Disclaimer: This article does not provide legal advice. If you need legal advice, please contact an attorney directly.