The Tribune

By LYNAIRE MUNNINGS

lmunnings@tribunemedia.net

THE Free National Movement criticised the Davis administration’s delayed response to the collapse of FTX, adding that the reputation of The Bahamas is “under attack” due to the silence of the government.

In a press statement released on Sunday night, East Grand Bahama MP Kwasi Thompson, who is also the shadow minister for finance, said the Progressive Liberal Party has failed to protect the country’s financial sector.

These comments came after a national address by Attorney General Ryan Pinder on Sunday night. “We are saddened that the PLP government has squandered opportunity after opportunity. The approval to operate as a digital exchange and the fall of FTX was on their watch,” Mr Thompson said in the statement.

“Despite what the Attorney General says many in the international community are using the fall of FTX to attack the good reputation of The Bahamas as a well regulated financial services jurisdiction.”

In agreement with the Attorney General, Mr Thompson said the former FNM administration positioned the Bahamas as a world leader in fintech financial services through the passage of the Digital Assets Registration Exchange (DARE) Act, adding that the legislation is “innovative, bold, and progressive”.

The East Grand Bahama MP acknowledged that during 2020, The Bahamas was “successful” in being one of the first in the world to provide a regime which was intended to attract the best in the world.

He also noted that the sector provided new “well-paying” employment and “new wealth” opportunities for Bahamians.

During his national address on Sunday, Mr Pinder took a hit at those who have criticised the government for being “silent” on matters regarding FTX’s implosion, explaining that due to ongoing investigations, officials must be careful how they respond to questions related to the embattled crypto currency exchange.

“It is deeply misguided to conclude that reluctance to communicate the details of an active investigation means that nothing is happening; in fact, the government’s discretion stems from how seriously we take our commitment to the rule of law and the independence of the securities regulator,” Mr Pinder said.

Mr Thompson, however, urged the Davis administration to do more to protect the country’s international reputation.

He noted that “one statement” on the FTX fallout is not sufficient from the government.

“The Bahamas’ reputation is under attack. We are a well-regulated and experienced jurisdiction with the best talent in the world and in the interest of our country, we must act to protect our industry,” said the East Grand Bahama MP.

He continued: “I repeat my statements made in the House of Assembly. We are not saying enough to protect our industry, if we say we are leaders, then we should lead! Our leader warned that by leaving a vacuum our competitors and enemies of our country would fill it with their narrative. Where is the communication strategy?”

Meanwhile, as local and international investigations into FTX continue, Commissioner of Police Clayton Fernander told this newspaper that police have not interviewed suspects in connection with the FTX probe.