The Bahamas Securities Commission (SCB) handles licensing in the Bahamas. The license issued by this Regulator includes the trading, exchange, storage, and issuance of virtual currency.
This jurisdiction is favourable for financial investment due to the provision of reliable protection and security of the economic environment. This article will discuss how you can receive a Bahamas crypto license and the benefits.
Table of Contents
- The Bahamas Securities Commission (SCB) oversees the licensing of crypto businesses in the Bahamas, covering activities such as trading, exchange, storage, and issuance of virtual currency.
- The jurisdiction offers various advantages including a stable economic and political environment, low taxes for foreign companies, and reliable financial infrastructure, making it popular for crypto businesses.
- To obtain a license, companies must meet several requirements including compliance with AML, CTF, and KYC policies, minimum capital requirements, and the qualifications of key personnel.
- A granted permit allows the company to engage in a range of crypto services like transactions on behalf of clients, customer storage management, and virtual currency storage, all while adhering to Bahamian laws and security measures.
- The process for registering a company involves creating an International Business Company (IBC), which requires naming the company, appointing a management team, preparing constitutional documents, and paying a registration fee.
5 Reasons Behind the Popularity of the Bahamas
The Bahamas have several advantages that attract the attention of many companies to open a crypto business. We list the main advantages:
- Favourable economic and political environment;
- Loyal taxes of foreign companies;
- Advantageous geographical location;
- The Bahamas is one of the wealthiest and most developed countries;
- Reliable and secure infrastructure for financial activities.
This attractive spectrum is the impetus for the crypto business in the Bahamas.
Crypto License Requirements
Conditions for receiving a permit include ensuring high security and maintaining the transparency of the company’s activities. The SCB regulator has developed a set of requirements for the licensing process:
The licensed entity is required to comply with regulatory rules, including AML, CTF, and KYC policies.
Authorised capital requirements
Depending on the size of your company’s business, its characteristics, and the permit type, there will be requirements for the minimum capital amount.
Matching all major contributors
The Regulator will check all the persons involved for suitability for running a crypto business (management staff, shareholders, founders, top managers). Their qualifications and experience in the field will be tested.
Company management policy
The firm’s founders must provide for sound corporate governance of the organisation. Creating a council of leaders with knowledge and experience in crypto-currency is also necessary.
The company’s management must develop a procedure for analysing the risks associated with crypto activities and create methods to reduce these risks.
A Responsible officer
An experienced employee who will monitor compliance with all regulatory conditions by applying AML, CTF, and KYC policies should be appointed.
The organisation needs high-quality software and technical equipment to ensure the reliability and security of financial activities.
Your firm is required to provide regular transaction reports, customer and account information. All information is submitted to the Regulator based on current regulations.
Each firm must undergo audits to monitor compliance with all established financial rules before being issued with a crypto license.
Depending on the company’s activity, insurance may be required in case of losses associated with risks: cyber-hacks, fraudulent activities, and software violations.
As you can see, it is not very difficult to comply with them, so you can easily get a work permit here.
What Does a Permit Give?
Consider what types of activities a crypto license provides in this jurisdiction.
- Conducting transactions on behalf of clients, but complying with the laws of the Bahamas and applying security measures, ensuring the protection of financial transfers and confidentiality;
- Management of customer storage, ensuring the safety of digital assets, but with security measures aimed at protecting against cyber-attacks, fraudsters, and other risks;
- Storage of virtual currency – it is possible to offer storage services for customers, protecting from possible electronic hacks;
- Other activities with virtual currencies.
Therefore, by receiving a crypto license, you can provide all the primary crypto-currency services.
How to Register the Firm?
Registration creates an international organization (IBC) as a legal entity applying for a permit. IBC is a financial business structure aimed at cooperation with global crypto companies.
Registration requires the following steps:
- Give the firm a name – it must be unique and meet the requirements of an organisation in the Bahamas.
- Appoint the management team and decide on individuals and legal entities. It should be noted that there are no requirements for positions held by managers, and only one shareholder can own an IBC company.
- Prepare constituent documents – articles of association, various agreements, etc. This document package should indicate your company’s purpose, management activities, and structure.
- Register as an IBC by providing a package of documents and paying a fee to register a company in Registry. You will receive an IBC registration certificate for a legal entity if everything is in order.
- Then you get a legal address and appoint a registered agent (local). It will be the link between the company and the state.
- Apply for a permit.
Based on the above, getting a permit is not so difficult; most importantly, it is reliable and prestigious.
You might also be interested in how to obtain an EMI (Electronic Money Institution) License in Lithuania.