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SCB to tackle stablecoins, NFTs in DARE amendments

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Chester Robards rejoined The Nassau Guardian in November 2017 as a senior business reporter. He has covered myriad topics and events for The Nassau Guardian. Education: Florida International University, BS in Journalism

Christina Rolle.

The Securities Commission of The Bahamas (SCB) is set to recommend amendments to the Digital Assets and Registered Exchanges (DARE) Act in order to remain in lockstep with an industry that is evolving almost daily, the commission’s Executive Director Christina Rolle said yesterday.

Rolle made her comments during a webinar hosted by Opalesque, a leading news service on hedge funds and alternative investments. She explained that the commission is preparing to address so-called stablecoins in a big way, especially after the world watched the collapse of a stablecoin called Terra this year.

“The collapse of Terra USD earlier this year highlighted some of the serious regulatory concerns around stablecoins, particularly algorithmic stablecoins that may be backed by other digital assets,” said Rolle.

“The commission is looking to recommend amendments to DARE to provide a clear and concise definition of stablecoins, reflecting the requirement that stablecoins must be fully backed by assets including fiat currencies, commodities or other financial instruments.

“We will create disclosure requirements bespoke to stablecoins. The requirement should be in addition to the general requirement of disclosure for token issuances and include an obligation for issuers of stablecoins to include in the offering document details of the operation and mechanics of the stablecoin.

“We will require disclosure around the standards and processes applied to the redemption of stablecoins and require ongoing reporting to the commission as appropriate.

“The commission is also looking to ensure that the issuance of stablecoins should be subject to financial reporting, including a quarterly financial report and