Country overview

#33

Bahamas

Country stats

Rating Points

240

This indicator describes the overall rating of a given jurisdiction on several parameters according to cryptocurrency operations - market volume, crypto regulation, business climate, taxation framework.

Crypto Penetration

3.4%

Estimated percentage of crypto users out of the country's total population based on public data.

Legal Entities

Number of crypto companies registered in the country based on regulator data if available or other types of public data.

Regulation Points

180

An overall assessment of the granularity of crypto regulation in a given country. A high score is also given to countries where cryptocurrency transactions are highly regulated.

Amount of crypto users

13 600

Total amount of crypto users out of the country's total population based on public data.

Taxation points

This figure, according to our analysts' calculations, indicates the overall level of tax burden for cryptocurrency transactions in a given country. The higher the indicator, the lower the burden.

Market volume points

33.4

A rough estimate of this jurisdiction's retail crypto market relative to the rest of the world. The higher the indicator, the higher the market potential.

Status of crypto

Legally allowed

General status of cryptocurrency regulation in this jurisdiction.

Crypto payments

No info

The legal status of cryptocurrency payments for goods and services in a given country based on information from regulators, public data and feedback from our community.

Security Level

High danger

The overall level of security in a given country based on open data.

Crypto Salaries

No info

The legal status of cryptocurrency salaries to employers in a given country based on information from regulators, public data and feedback from our community.

Business Climate

Good

Overall assessment of the friendliness of this country for crypto-business. This indicator takes into account the cost of obtaining a license and the attitude towards crypto entities in the country.

Stablecoin Regulation

Basic

This indicator is evaluating the regulation of stablecoins in a given country. Complex regulation means that it is possible to issue steiblcoins and obtain a license for this activity. Basic regulation means that the issuance of stablecoins is possible, but not all legal aspects are defined in the law. Standard regulation means that there is a legal practice of steylcoin circulation in a given country.

Bad Factors

EU Tax haven list

This section describes the unfavorable economic factors for crypto-business in a given country. These are countries that are under sanctions or on the FATF grey list and other factors.

Types of licenses

Crypto-to-crypto

This license type allows VASP to provide legal exchange from one cryptocurrency to another.

Crypto-to-fiat

This type of license regulates the exchange from cryptocurrency to fiat.

Wallet/Custody

This country has a legal licensing procedure for companies that store cryptocurrency - - crypto wallet providers and custodians.

ICO/STO

This indicator describes legal procedures for token sales and security token issuance. This country has a clear regulation framework and licensing procedures for entities that provide this activity.

Good

Medium

Bad

intro

The Bahamas is famous for its offshore company registration options. It also has a crypto regulation framework. It's less popular than places for crypto businesses like the Cayman Islands, BVI, and Seychelles. However, including the fact it's a tax haven, Bahamas may be a good place to set up a crypto company.

Security level

The Bahamas has a great danger security level according to our rating. Jurisdiction has 39.7 points (from 100) for safety level in Numbeo crime rating (1). The homicide level (2) is 29.2 per 100,000 inhabitants a year.

Crypto Payments

We need more information about crypto payments in the Bahamas. If you have this information, don't hesitate to contact us.

Crypto Salaries

Currently, we need more information about crypto salaries in the Bahamas. Please contact with us, if you have this information.

Legal

Information about the regulation of cryptocurrency in the Bahamas can be checked in the government white paper “The Future of Digital Assets in the Bahamas” (3) and in the Digital Assets and Registered Exchanges Bill (4) (known as the DARE Act). According to these documents, cryptocurrencies in the country are regulated by The Securities Commission of the Bahamas (SCB) (5).

Law firm Grahamandthomson has provided its review (6) of crypto regulations in the Bahamas. According to this source, the DARE Act regulates digital asset businesses (analogous to VASPs) and initial token offerings (ITO).

Details (about digital asset businesses)

Digital asset businesses (which is fundamentally an umbrella term) include: • a digital token exchange and provision of services in connection with the same; • payment service providers utilizing digital assets; • digital asset service providers (including DLT Platforms that facilitate exchanges between digital assets and fiat currencies, the exchange between one or more forms of digital assets, and the transfer of digital assets); and • participants in or providers of financial services related to an issuer’s offer or sale of a digital asset.

DARE applies to any organizer, issuer, founder, purchaser or investor (as defined by DARE) that participates in the formation, promotion, maintenance, organization, sale or redemption of an initial token offering (‘ITO’) as well as any legal entity carrying on a digital asset business, irrespective of any physical location from which the activity is carried out.

Global Legal Insights (7) defines another version in which legal entities refer to digital asset businesses.

Details

Persons who, as a business, undertake digital asset transactions on behalf of another person.

To better understand license procedures in the Bahamas, you may check the application form for registration of digital asset business in the SCB template here (8).

Global Legal Insights (9) highlights two crucial facts about regulating cryptocurrencies in the Bahamas. This jurisdiction has a joint law with Great Britain, and the local government holds crypto assets as property.

In 2020 Bahamas launched its own CBDC - the Sand dollar (10).

According to the published registry (11), in March of 2022, three licensed legal entities were in the Bahamas. In March of 2023 (12), there will be 12 entities, including Bitfinex and OKX.

Taxation

Tax name	Index
PIT tax Max	0
PIT tax Min	0
Corporate tax (CIT)	0
Max Individual CGT (for crypto)	0
Min Individual CGT (for crypto)	0
Wealth tax Max	0
Wealth tax Min	0

According to Wikipedia article (13), the Bahamas doesn't have income, capital gains, inheritance, or corporate taxes.

This information is confirmed by Global Legal Insights review (14), although digital asset businesses have a 2,5% tax.

Businesses registered under the DARE Act pay a flat business licence tax or fee of $2,500 plus an additional fee of 2.5% of turnover from their operations in the domestic market.

The Bahamas also needs a mining tax. However, it’s not attractive to mining because of high energy prices.

Links

1)Crime Index by Country 2023 Mid-Year

2)List of countries by intentional homicide rate

3)The Future of digital assets in the Bahamas. PDF-file

4)DIGITAL ASSETS AND REGISTERED EXCHANGES BILL, 2020. PDF-file

5) The Securities Commission of the Bahamas

6)REGISTERED EXCHANGES (‘DARE’) ACT, 2020. PDF-file

7, 9, and 14)Global Legal Insights. Blockchain & Cryptocurrency Laws and Regulations 2023 | Bahamas

8)DIGITAL ASSETS AND REGISTERED EXCHANGES ACT, 2020 PART B. PDF-file

10)Sanddollar. Digital Bahamian Dollar. Article

11)REGISTER OF DIGITAL ASSET BUSINESSES. PDF-file

12)REGISTER OF DIGITAL ASSET BUSINESSES Registration information provided as at 31 March 2023 Digital Asset Business: FTX DIGITAL MARKETS LTD. PDF-file

13)Wikipedia. Taxation in the Bahamas. Article

Articles

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The State of Crypto Regulation in 2023

We tell you about the features of crypto regulation in the world in 2023

intro

Security level

Crypto Payments

We need more information about crypto payments in the Bahamas. If you have this information, don't hesitate to contact us.

Crypto Salaries

Currently, we need more information about crypto salaries in the Bahamas. Please contact with us, if you have this information.

Legal

Details (about digital asset businesses)

Global Legal Insights (7) defines another version in which legal entities refer to digital asset businesses.

Details

Persons who, as a business, undertake digital asset transactions on behalf of another person.

To better understand license procedures in the Bahamas, you may check the application form for registration of digital asset business in the SCB template here (8).

In 2020 Bahamas launched its own CBDC - the Sand dollar (10).

According to the published registry (11), in March of 2022, three licensed legal entities were in the Bahamas. In March of 2023 (12), there will be 12 entities, including Bitfinex and OKX.

Taxation

Tax name	Index
PIT tax Max	0
PIT tax Min	0
Corporate tax (CIT)	0
Max Individual CGT (for crypto)	0
Min Individual CGT (for crypto)	0
Wealth tax Max	0
Wealth tax Min	0

According to Wikipedia article (13), the Bahamas doesn't have income, capital gains, inheritance, or corporate taxes.

This information is confirmed by Global Legal Insights review (14), although digital asset businesses have a 2,5% tax.

Businesses registered under the DARE Act pay a flat business licence tax or fee of $2,500 plus an additional fee of 2.5% of turnover from their operations in the domestic market.

The Bahamas also needs a mining tax. However, it’s not attractive to mining because of high energy prices.

Links

1)Crime Index by Country 2023 Mid-Year

2)List of countries by intentional homicide rate

3)The Future of digital assets in the Bahamas. PDF-file

4)DIGITAL ASSETS AND REGISTERED EXCHANGES BILL, 2020. PDF-file

5) The Securities Commission of the Bahamas

6)REGISTERED EXCHANGES (‘DARE’) ACT, 2020. PDF-file

7, 9, and 14)Global Legal Insights. Blockchain & Cryptocurrency Laws and Regulations 2023 | Bahamas

8)DIGITAL ASSETS AND REGISTERED EXCHANGES ACT, 2020 PART B. PDF-file

10)Sanddollar. Digital Bahamian Dollar. Article

11)REGISTER OF DIGITAL ASSET BUSINESSES. PDF-file

12)REGISTER OF DIGITAL ASSET BUSINESSES Registration information provided as at 31 March 2023 Digital Asset Business: FTX DIGITAL MARKETS LTD. PDF-file

13)Wikipedia. Taxation in the Bahamas. Article