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In a White Paper on the Future of Digital Assets released on Wednesday, the Bahamas' Office of the Prime Minister said the government would begin "allowing taxes to use digital assets" after working with the central bank as well as private parties in the country. Besides, the government also plans to give people access to cryptocurrencies in the Bahamas dollar and encourage the use of the country's digital currency (CDBC), the Sand Dollar.
"The government will make every effort to ensure digital assets are not used to avoid taxes or sanctions, and will ensure compliance with applicable Tax Information Exchange Agreements (TIEA), domestic laws and regulated OECD standards," the white paper said.
In an effort to create uniformity in government ministries, the Bahamian government said it would establish a digital asset policy committee as well as a digital advisory channel (DAP). The commission will be run by Prime Minister Philip Davis with members including the Finance Minister, the governor of the Central Bank of the Bahamas, the Ceo of the Securities and Exchange Commission, and the dap leadership. The advisory channel will include experts from the digital asset sector "to continually look at digital assets, digital developments, emerging trends and associated risks."
"Our vision is to make the Bahamas the leading digital asset hub in the Caribbean and a world leader in radical regulations on doing business in this new area," Davis said. "While we recognize the extraordinary opportunities that cryptocurrencies present, we also recognize the risks, and so we focus on effective regulation."
FOLLOWING- Prime Minister Philip Davis today tabled a White Paper in Parliament outlining “a vision and a framework to guide digital asset policy in The Bahamas” (1/2). pic.twitter.com/Elun7BjkWT
— Eyewitness News Bahamas (@ewnewsbahamas) April 20, 2022
In October 2020, the Bahamas became the first country to have a legal body fully implement CBDC. The cryptocurrency, sand dollar, aims to promote greater financial participation in the island nation of more than 700 islands, of which about 30 are inhabited. Major cryptocurrency exchange FTX expanded into the country by registering a branch in the Bahamas in September 2021.
