The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The world’s second largest cryptocurrency exchange has included a 38-room, seven storey hotel in the plans for its proposed $50-$60m western New Providence headquarters.

FTX Property Holdings, the real estate holding company for FTX Digital Markets, has submitted plans for the development of a near five acre site at Bayside Executive Park that will be discussed and reviewed at a virtual meeting hosted by the Department of Physical Planning this coming Wednesday.

Executives with the cryptocurrency exchange could not be reached for comment before press time last night, but details of its construction/real estate plans - published in yesterday’s newspaper - reveal it intends to construct three separate buildings.

These include a “seven-storey hotel with 38 rooms, retail, roof-top lounge spaces, staff day care, a gym and cafes”. Also in the mix is a “seven-storey office tower” featuring a cafe, lecture halls, meeting rooms, co-working and athletic spaces.

The final of the three FTX properties is a four-storey “commercial building” with cafes, retail lounge spaces, auditorium, conference and meeting spaces, and offices, classrooms and a library/computer rooms. The site will also have room for 1,010 vehicle parking spaces, in line with FTX’s plans to create 1,000 jobs.

“The applicant is seeking planning approval to develop a 4.95 acre parcel of land on the southern side of West Bay Street, approximately 3,500 feet west of Blake Road,” the Department of Physical Planning said. “The applicant proposes to develop the site for FTX’s office headquarters, a boutique hotel and a building for various commercial uses.”

Allyson Maynard-Gibson, the former attorney general and Cabinet minister, has previously been identified as FTX’s attorney. The planning application identifies Clement T. Maynard & Company as the cryptocurrency exchange’s attorneys.

Sam Bankman-Fried, founder and chief executive of FTX Capital Markets, previously said The Bahamas’ move to establish the “world’s first comprehensive” regulatory regime for crypto currency and digital assets had encouraged the exchange to relocate to this nation from Hong Kong.

He added that the ability of Bahamian regulators and the Government to work with FTX and other businesses in keeping the cryptocurrency space “compliant and regulated”, while at the same time being welcoming to business, was critical.

Mr Bankman-Fried said: “It’s incumbent upon us and the other big players in the business, as well as the regulators, to make sure that the space remains safe for all of the users.

“We have a ton of tools that we use for that, including AML/KYC (anti-money laundering/Know Your Customer) checks, market manipulation checks and screenings, and we have a ton that we’re rolling out every day. It’s absolutely crucial for the space to be able to grow in a safe way.

“There are a ton of really exciting things that we have planned over the next years to help grow sustainable and efficient markets, and to help give access to the financial system to those who haven’t had it before.” FTX has also made multiple donations to charities and good causes since its arrival in The Bahamas as it seeks to embed itself in the community.

Christina Rolle, the Securities Commission’s executive director, previously told Tribune Business that its legislative DARE has received “a huge vote of confidence” through attracting FTX to The Bahamas.

She added that its decision to establish a subsidiary with physical presence in this nation signalled that The Bahamas “went in the right direction” by passing the Digital Assets and Registered Exchanges (DARE) Act to fully regulate this fast-evolving and moving sector.

Pledging that the capital markets regulator is “keeping on top” of global developments relating to crypto currency and virtual assets, she added that more DARE-related applications for licences and registration are “in the pipeline” although their number and identities were not disclosed.

And Ms Rolle also revealed the Securities Commission is working on anti-money laundering/counter-terror financing/proliferation financing rules for the virtual asset space, as well as policies “addressing certain operational matters” in addition to when a virtual asset - or token - crosses over to become a physical security.

She explained that the Securities Commission was opting for rules, rather than regulations, as the latter were “too prescriptive” and could stunt growth and innovation in the digital niche where The Bahamas has a chance to become a market leader and regain some of the ground it has lost in financial services over the past 20 years.