Regulatory Alerts2023-12-12
Digital Assets Guidelines 2023
The Central Bank of The Bahamas issued these 2023 guidelines to establish regulatory expectations and prudential standards for supervised financial institutions engaging in digital asset activities. The framework mandates comprehensive risk management integration, requires prior notification for initial token offerings and service operations, and classifies exposures into three prudential groups based on underlying asset characteristics. Additionally, the guidelines prohibit holding unbacked virtual currency tokens as balance sheet deposit liabilities while permitting credit extensions against acceptable collateral, ensuring alignment with the Basel Committee’s “same risk, same activity” principle.
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