The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Europe's failure to account for blockchain technology in its new data protection regime "represents an opportunity for The Bahamas" to capitalise on, a technology executive argued yesterday.

Dr Donovan Moxey, who chaired the government-appointed Technology Hub Steering Committee, told Tribune Business that last week's blockchain and cryptocurrency conference had "let the world know" The Bahamas intends to "play a role" in this emerging sector.

Acknowledging that much remained to be done to establish the regulatory, infrastructure and business climate that would attract companies to the government's proposed Grand Bahama "technology hub", Dr Moxey said it was already adopting the committee's recommendations (see other article on Page 1B) and dedicating resources to develop a "balanced" regulatory framework.

"I think it was very well received, and the Bahamas got a really good benefit from it," the Mobile Assist president said of the conference. "One of the things it did for us, the important thing we were sending, was a communication to the world that the Bahamas is focused on being a jurisdiction that is receptive to blockchain and crypto companies.

"It let the world know the Bahamas is going to be a jurisdiction that plays a role with these new companies. Given that this conference was put on by the Office of the Prime Minister, it demonstrates the Government's commitment that the Bahamas is going to be involved in this industry in some way."

The staging of such a conference was among the Committee's main recommendations, given that it would put the Bahamas 'on the map' and draw technology industry interest and attention - especially players in the blockchain and crypto currency space - to the possibility of establishing a base in this nation.

Dr Moxey yesterday estimated that around 15-20 per cent of the conference's 450 attendees were international, including players involved with initial coin offerings (ICOs) and "companies that operate exchanges that were really looking at the Bahamas as a possible destination for" their business.

He added that such companies had found the opportunity to speak to government decision-makers, officials, regulators and Bahamian service providers invaluable, as they were able to assess "what the opportunity looks like" in this nation.

And, from a local perspective, Dr Moxey said last week's conference had "opened up eyes to a brand new world", with Bahamians getting a better understanding of blockchain technology and Bitcoin, how they worked, and potential opportunities they themselves can exploit.

"What I can tell you from working with the Government is they are very serious about establishing technology as a third pillar of the economy," he told Tribune Business. "Blockchain technology is the low hanging fruit. The question is how do we attract the low-hanging fruit to establish this jurisdiction as favourable to these companies.

"This is not an opportunity you can let bypass you. Other jurisdictions will take it instead of you. There's a couple of other recommendations made that the Government is focused on executing as well."

Dr Moxey said a presentation by Michael Wright, the Bahamas' Data Protection Commissioner, had identified the European Union's (EU) new data protection regulation, known as the GDPR, as a potential opportunity because it failed to account for how blockchain technology works.

"Blockchain companies will say why go to the EU with their regulatory framework when we can go somewhere else? That, again represents opportunity for the Bahamas," he told Tribune Business.

Dr Moxey said the creation of an appropriate Bahamian regulatory regime for such technology was "in active process", with the Government and supervisory bodies seeking to strike a balance between "maintaining the reputation of the Bahamas as a premier financial centre" without "stifling innovation".

"There's reputational risk there, but there's a significant opportunity to lay the foundation for a technology industry in the Bahamas," he told Tribune Business. "The Government is very focused on getting that framework in place, and a number of resources have been applied to have that up and complete as soon as possible.

"That's extremely critical, as investors like certainty with the rules. They don't want to come into a jurisdiction with uncertainty. It's rules that everyone understands are in place to make sure innovation does not get stifled, but anyone who comes in as a bad actor can be recognised quickly and removed from the process. That's the balance that has to be played."