In a way to show it has learnt from the collapse of FTX Derivatives Exchange, the Securities Commission of the Bahamas (SCB) has introduced a whole new set of rules that will strictly guide the activities of Virtual Assets Service Providers (VASPs) looking to do business on its shores.

In addition to its existing rules, the SCB said it has strengthened the financial and reporting standards for trading platforms, custody service providers, staking operators and asset managers in the space. 

Disguised in the Digital Assets and Registered Exchanges (DARE) Bill, the SCB noted that it will increase its monitoring and evaluation for crypto companies and benchmark its standards in line with what is applicable in other advanced jurisdictions like the European Union, Hong Kong and the United States.

The SCB is taking a definitive approach where it will require exchanges to maintain adequate systems and controls that are a true reflection of their growth. The SCB came under fire after the collapse of the FTX Exchange as its oversight role was called into question by industry leaders and observers including the bankrupt exchange’s new CEO, John Ray III.