Digital Assets and Registered Exchanges Act, 2024, commonly referred to as the DARE Act 2024, is The Bahamas’ active statutory framework for digital asset businesses, exchanges, token offerings, custody, staking, stablecoins, derivatives, and related market conduct. The Act is No. 40 of 2024, received assent on July 26, 2024, and came into force on July 29, 2024 under the Appointed Day Notice, S.I. No. 54 of 2024. It repeals and replaces the Digital Assets and Registered Exchanges Act, 2020.
The Act is administered by the Securities Commission of The Bahamas, which is responsible for regulating, monitoring, and supervising the issuance of digital assets and the conduct of digital asset business in or from within The Bahamas. The Commission’s functions also include developing rules and guidance, registering digital asset businesses and token offerings, supervising solvency and conflicts, and taking enforcement action.
Key provisions of the Bahamas DARE Act 2024
Digital asset business registration
DARE Act 2024 prohibits a person from carrying on a digital asset business in or from within The Bahamas unless the person is a legal entity registered under section 9. The registration application framework requires prescribed forms, fit-and-proper information for founders, beneficial owners, directors and officers, officer appointment forms, fees, and any additional information requested by the Commission.
The Act’s regulated activity list is broad. It covers operating a digital asset exchange, exchanging digital assets for fiat or other digital assets, payment services involving digital assets, order execution, stablecoin issuance, placing digital assets, transfer services, custody, advice, discretionary management, DLT node services, anonymity-enhancing services, digital asset derivative services, staking services, and other prescribed activities.
Custody, staking, and exchange controls
Custody is brought into the digital asset business regime. Registered custody providers must segregate client digital assets from their own assets and non-client assets, maintain separate on-chain and internal ledger accounts, obtain explicit client consent for omnibus arrangements, and keep custody assets insulated from the custodian’s estate, including in insolvency.
The staking framework requires applicants to provide information on client agreements, the staking protocol, consensus mechanism, lock-up mechanics, rewards, redemption arrangements, penalties, validator-selection mechanics where applicable, and any other information required by the Commission.
Token offerings, stablecoins, and privacy tokens
The Act regulates token offerings in or from within The Bahamas, including issuer disclosures, offering memoranda, token registers, and continuing disclosure obligations. The Commission may order offering-memorandum amendments, suspend a token offering, require misleading material to be amended or removed, and publish public notices about action taken.
DARE Act 2024 also creates a stablecoin framework. It prohibits algorithmic-style stablecoins that purport to maintain stable value by supply-adjustment protocols, requires stablecoin offering documentation to address reserve assets and redemption policies, and requires permitted stablecoins to be fully backed by reserve assets. Stablecoin redemption policies must be clear and conspicuous and confer a timely 1:1 redemption right, net of ordinary disclosed fees.
Market abuse, sanctions, and transition
The Act contains market-integrity provisions covering misrepresentation, inside information, unlawful disclosure of inside information, market manipulation, penalties on unlawful gains or losses avoided, whistleblowers, administrative sanctions, and freeze orders. It also requires market surveillance tools and suspicious-transaction detection as part of registration approval.
Status and timeline
As of June 5, 2026, DARE Act 2024 should be treated as active law. The Securities Commission’s Acts and Regulations page lists both the DARE Act 2024 and the Appointed Day Notice, while the Commission’s DARE page links current fees and application forms for persons registered under the Act.
The Act includes savings and transitional provisions. Persons already engaged in activities regulated under the Act immediately before commencement were deemed to be engaged under the new Act and required to apply for registration within 90 days of commencement. Existing FCSPA licensees providing digital-asset custody were deemed registered under DARE but had to comply with DARE custody requirements within the same 90-day period.