The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Bahamian regulators yesterday issued a warning about an unregistered digital assets exchange purported to be operating from this nation illegally.

The Securities Commission, in a notice published on its website, asserted that FMFW LTD is offering online services "as a digital token exchange for the buying, selling and trading of digital assets". The company's website also alleges that it is registered in The Bahamas, and that its user agreement and 'terms and conditions' for customers are governed by this nation's laws.

However, the regulator said FMFW is not licensed under the Digital Assets and Registered Exchanges (DARE) Act and is therefore operating without the necessary authorisations. "Collectively, based on the services offered and the statements made, the purport or impression is that FMFW is authorised to carry on a digital asset business, as an exchange, in or from within The Bahamas," the Securities Commission warned.

"The Digital Assets and Registered Exchanges Act 2020 prohibits any person from carrying on or being 'involved in a digital asset business in or from within The Bahamas, or purport to do so, unless' that person has applied to and has been registered by the Securities Commission of The Bahamas.

"FMFW has not made an application to the Commission, and has not been registered and authorised by the Commission to carry on a digital asset business in or from within The Bahamas," the regulator added. "

"Individuals currently (or desirous of) conducting business with the aforementioned entity or its agents/representatives should be cognisant that they are doing so with an entity and/or its agents who are not authorised or regulated by the Commission. Members of the public should exercise extreme caution in considering engagement in digital asset related activities with the aforementioned entity or its agents/representatives."

The Securities Commission also issued a separate warning about another 27 unlicensed and unregistered entities that it alleges are holding themselves out as conducting business from or within The Bahamas. "The Commission hereby advises the public that none of these entities or their agents/representatives are registered with/licensed by the Commission," the regulator said.

"Additionally, none of the listed entities have applied to be registered/licensed by the Commission. Therefore, any registrable/licensable activity conducted in or from within The Bahamas by these entities and their agents/representatives is in violation of one or more of the Acts."