The Tribune

By YOURI KEMP

Tribune Business Reporter

ykemp@tribunemedia.net

The Government is planning to stage an “international Fintech festival” that will attract 3,000 industry executives to The Bahamas early next year and further boost this country’s digital asset ambitions.

Senator Michael Halkitis, minister of economic affairs, made the announcement in kicking-off the Budget debate in the Senate. He said: “The Government, along with the Securities Commission, intends to build upon its global recognition as an innovative and appropriately-regulated Fintech (financial technology) jurisdiction by hosting an inaugural international Fintech festival.

“We are working with a leading Fintech events planner with a goal of bringing up to 3,000 Fintech thought leaders, enthusiasts, entrepreneurs, regulators and people with a deep interest in this space to our shores early next year. “

The Bahamas has already hosted the CryptoBahamas Conference, organised by cryptocurrency exchange FTX Digital Markets, where hundreds of operators in the digital assets, blockchain, non-fungible token (NFT) and decentralised finance space descended upon this nation in late April.

Mr Halkitis added: “The Bahamas continues to take a principles-based regulation approach. We aim to strike the appropriate balance between encouraging innovation and ensuring robust regulation to attract more compliant digital asset businesses to the space.

“We also pledge to fully develop the orange, green, and blue economies, as well as foster the growth of a local digital economy, leveraging our geopolitical, cultural, economic and tax-related strengths to become a hub for emerging advances in technology. We are already seeing our strategies pay dividends when it comes to Fintech, blockchain and Web3-based enterprises within our borders.”

Building on a Bahamian financial services industry ‘Landfall’ promotional event, which was held in New York in March, Mr Halkitis added: “Less than two weeks from now, we will join the Bahamas Financial Services Board at The Bahamas Spotlight Event in London, where I will be opening the event under the theme: The Bahamas 360: The complete and compelling choice.

“Global attendees will be given insight into existing wealth management strategies; The Bahamas’ value proposition as a financial services centre; existing investment fund and wealth management options; and the role of digital assets and Fintech in expanding and strengthening our services.”

Mr Halkitis continued: “DeFi (decentralised finance) has great potential to disrupt finance, but there are many regulatory issues that must be addressed, including consumer protection issues. Regulators must also look at unique issues that may arise as a result of the lack of intermediaries, and how they will continue to ensure market integrity, which is critical for the functioning of the financial system.

“The Government, with advice from the Securities Commission, will address unique issues in this space as they evolve.” With regard to “staking,” which is a process that involves committing crypto assets to support a blockchain network and confirming the transactions, he added: “For exchanges and custodians that use clients assets for the purpose of staking, we are looking to address minimum disclosures that must be made to clients, along with other issues related this topic.”