The United Arab Emirates (UAE) city of Dubai has placed its bid to be the crypto capital of the world. The cosmopolitan city, which is hosting four separate crypto events in April alone this year, created the Dubai Virtual Assets Regulatory Authority (VARA) to oversee the development of its virtual asset business environment in terms of regulation, licensing, and governance.
But it appears the UAE and Dubai are facing strong competition from The Bahamas and Nassau, which in 2020 created its own Digital Asset Registered Exchanges (DARE) legislation, then bolstered that legislation in 2023 in the wake of the FTX scandal.
Bahamian Prime Minister Philip Davis, while opening up the 2022 Crypto Bahamas conference in Nassau stated that, “We have the vision to transform the Bahamas into the leading digital asset hub in the Caribbean.”
Convicted fraudster Sam Bankman-Fried and the now-disgraced FTX, whose attorneys recently told a New York bankruptcy judge the company expects to repay defrauded creditors in full, were active in building the ‘cryptoverse’ in both Dubai and Nassau. Bankman-Fried had moved his corporate headquarters to The Bahamas largely because of “…the proactive stance taken by the Bahamas and its regulatory bodies on cryptocurrencies.”
The Bahamians in 2020 had also enacted the Financial and Corporate Service Providers Act, which established safeguards for the custody of digital assets. The DARE and FCSP acts showed the digital currency community that The Bahamas was ready to become a major player, as did the launch of the Bahamian Sand Dollar, one of the world’s first central bank digital currencies.
After the collapse of FTX, the Securities Commission of The Bahamas opted to upgrade the 2020 DARE Act to expand the definition and list of digital asset business activities to include robust consumer and investor protection, risk management, and market innovation and development provisions.
According to a Commission press release, the 2023 bill sought to strengthen financial and reporting requirements for digital asset businesses and requirements related to (1) custody and custodial wallet services, (2) operating a digital asset exchanger, (3) providing advice on and management of digital assets, (4) provision of staking services, and (5) offering a comprehensive approach to the regulation of stablecoins.
Christina Rolle, Executive Director of the Commission, boasted that “DARE 2023 will be among the most advanced pieces of digital asset legislation in the world and will align with The Bahamas’ commitment to facilitating development and innovation in a well-regulated environment.”
Rolle explained that the 2023 DARE Act, crafted with the assistance of the international law firm Hogan Lovells, sought to address legislative gaps, ambiguities, and procedural concerns in the original legislation. The amendments strengthened protection mechanisms with new disclosure and reporting requirements, specific registration obligations, and enhanced ongoing supervision for operators in the digital asset space.
The goal was to allow room for digital asset businesses to innovate as the space continues to evolve and to provide the flexibility for the Commission to prescribe additional rules applicable to digital asset exchanges and bespoke requirements for different categories of registrants.
The new law has already opened the door for major crypto-based investment. No sooner than the ink was dry on the 2023 DARE Act, the benefits began rolling in.
Unicoin Inc., which just months ago used its cryptocurrency to purchase the Eden Grand Resort in Thailand for $335 million, announced two significant deals for the acquisition of beneficial ownership interests in companies holding prime land in The Bahamas.
The targeted properties for what is now the world’s largest cryptocurrency real estate deal span 7,721 acres across Long Island and Andros Island. Unicoin Inc. has committed to a total payment of 1,108,863,283 unicoins to purchase a stake in the two properties, reflecting a total value of $554,431,641 at the current unicoin fundraising price of 50 cents per coin.
CEO Alex Konanykhin, “thrilled” with the successful completion of the acquisition, praised The Bahamas as “…no longer an elite travel and tourism destination” but “…is becoming a world-renowned digital asset hub, and thus a strategic addition to Unicoin’s global portfolio.”
But Unicoin, whose portfolio has grown to $1.4 billion+, is hardly done.
The acquisitions, which bring Unicoin into a partnership with New World Properties SPV, will unlock the development of resorts, hotels, and elite collaborations in The Bahamas, with Unicoin utility at the core, according to New World CEO Armando Rubio.
Rubio said, “In partnership with Unicoin, we will explore options for developing hotel and condo resorts and spotlighting prestigious flagship collaborations throughout the targeted properties. This initiative ultimately aims to significantly expand the utility and value of the Unicoin ecosystem.”
Much like what we see in the Gulf, the proactive stance of the Bahamian government oceans away, including its commitment to a strong regulatory framework, one that is making it possible for Unicoin to aggressively acquire tangible, income-generating assets, will ultimately provide significant revenue for the government – and many jobs for the Bahamian people.
And this deal will doubtless raise the reputation of The Bahamas as a crypto hub and upgrade the future of cryptocurrencies in the real estate space.
