Bahamas Crypto License
Last Update: 16.06.2026
A Bahamas crypto license is a registration with the Securities Commission of The Bahamas (SCB) under the DARE Act 2024. Government fees run $3,750–$18,750 depending on activity, minimum capital starts at about $50,000, and approval takes 3–12 months depending on registration category. Gofaizen & Sherle handles the full path: Bahamian company setup, AML framework, fit-and-proper filings, and SCB communication.
Who needs a crypto license in the Bahamas?
Any company operating in or from The Bahamas that provides digital asset services must register with the SCB under the DARE Act 2024. That covers:
- Exchanges — crypto-to-crypto and crypto-to-fiat trading platforms
- Custodial wallet providers — holding client keys or assets
- Staking and yield services — added to the DARE perimeter in 2024
- Broker-dealers and OTC desks — intermediating client transactions
- Token issuers — initial token offerings registered with the SCB
The registration is the Bahamian equivalent of a VASP license — see our crypto license hub for how DARE registration compares with other jurisdictions.
The Bahamas regulates digital-asset services through the Securities Commission of The Bahamas (SCB) under the DARE Act 2024. The act applies extraterritorially: it covers any legal entity, regardless of location, that does business with Bahamian residents. The SCB may expand the regulated perimeter as the digital-asset market evolves.
Why register a digital asset business in the Bahamas?
Clear, market-tested licensing rules
The DARE Act was modified specifically for the market: it sets out basic, transparent requirements every operator must meet.
Strong AML/KYC enforcement
The SCB holds all participants to international AML/KYC standards, which underpins banking relationships and global recognition.
Fast setup under SCB oversight
New projects launch quickly while established firms scale under SCB administration; the regulator actively promotes the sector.
Zero corporate and capital-gains tax
Bahamian IBCs pay no income, capital-gains, profit or dividend tax — only an annual licence fee.
Closed beneficial-owner registry
The Beneficial Owner Registry Act 2018 keeps ownership data in closed databases accessible only to authorised government agencies.
245+ financial institutions for banking
About 245 banks and trusts are registered locally; crypto firms bank with institutions such as Citibank, Scotiabank and RBC Royal Bank.
How does the DARE Act 2024 regulate crypto in the Bahamas?
The DARE Act 2024 (Digital Assets and Registered Exchanges Act) replaced the original 2020 framework and is administered by the Securities Commission of The Bahamas. It widened the perimeter to staking and yield products, tightened client-asset segregation after the FTX collapse, and set disclosure rules for stablecoin issuers. The SCB may impose fines, suspend operations, or revoke registration under DARE Part VI.
The main legislative act for crypto entrepreneurs is:
- The Digital Assets and Registered Exchanges Act 2024 (DARE Act), which, in addition to being the basis for regulating the cryptosphere, also expanded the scope of licensing (staking, storage), established regulations for stablecoins, and introduced classifications for NFTs.
- The AML/KYC requirements for Bahamas crypto licenses are laid out in the Comprehensive Review Update Policy, the Digital Assets and Registered Exchanges Rules, the Anti-Terrorism Act 2018 (ATA), and the Financial Transactions and Reporting Act 2018 (FTRA).
- The Data Protection Act (DPA) specifies who has the right to access, collect, and transfer personal data, and establishes penalties for violators (up to $100,000).
- The Beneficial Owner Registry Act of 2018 introduced rules regarding access to information about company owners/shareholders.
What changed in DARE 2024 vs DARE 2020?
DARE 2024 replaced the 2020 act with five practical changes:
- Staking and yield services now require registration
- Client-asset segregation rules tightened post-FTX
- Stablecoin issuers got dedicated disclosure duties
- NFT classification — the act introduced a framework for non-fungible tokens
- Transitional arrangements for businesses registered under DARE 2020
What are the requirements for a Bahamas crypto license?
Requirements for a Bahamas crypto license fall into five groups:
- Local entity: a Bahamian company under the IBC Act with a registered office
- Physical presence: local office and a resident compliance officer
- Capital: from about $50,000, scaled to activity type
- AML/CFT: approved AML manager, KYC procedures, transaction monitoring
- Fit-and-proper: directors, beneficial owners, and the CEO pass SCB interviews
SCB prioritizes ensuring the integrity and transparency of crypto activities, ensuring that all participants operate within the legal framework, and creating a safe environment for investors.
- CEO integrity and competence check. Key managers/CEOs are subject to high standards, such as sufficient experience with digital assets, understanding of risks, and business models. When applying, a separate Form 3 must be completed for the Regulator, providing information about the manager and their professional qualifications. SCB conducts interviews with the CEO.
- Operational and technical capabilities. Applicants provide a detailed description of all technical data management and storage systems, operational mechanisms, risk management, and cyberattack response systems.
- Insurance coverage. Each applicant must provide SCB with proof that it has sufficient insurance coverage and regulatory capital to mitigate operational risks.
- Main address on the islands. The application must indicate the address of the office and all contact information (e-mail, telephone, website).
Bahamas crypto license fees and numbers
| Item | Amount (USD) | Notes |
|---|---|---|
| Application fee — exchange | $6,250 | one-time |
| Registration fee — exchange | $18,750 | one-time |
| Application fee — other digital asset activities | $3,750 | one-time |
| Director / AML manager registration | $575 | per person |
| Annual renewal | $3,750–$18,750 | by activity |
| Minimum capital | from ~$50,000 | scaled to activity |
The Bahamian dollar (BSD) is pegged 1:1 to USD, so no currency conversion applies.
How does the Bahamas crypto license process work?
The Bahamas crypto license process takes 3–12 months depending on registration category and runs in four steps: Bahamian company preparation, application filing with the SCB, fit-and-proper review with comment rounds, and approval with annual fees of $3,750–$18,750. Steps to get a crypto license in the Bahamas:
Step 1: Preparation.
Initially, the applicant must register a legal entity, for which the following is required (by the provisions of the IBC Act of 2020):
- Select a unique name for the company and reserve it with the Department of the Registrar General. It is prohibited to use words (bank, insurance) in the name without obtaining the relevant permission.
- Prepare corporate documents: Memorandum, Articles of Association.
- Prepare a detailed business plan describing the structure and objectives of the business.
- Appoint a local registration agent and rent an office.
- Determine who will manage the company (at least one manager).
- Pay government fees as per the Appendix to the IBC Act 2014.
Step 2: Apply to the SCB.
The Securities Commission must review the information from the completed forms and supporting documentation, including but not limited to:
- Main company documents (Articles of Association, Memorandum, Certificate of Registration).
- Information about the founders (the main requirement is good standing); for managers/CEOs, a separate questionnaire must be submitted, indicating all professional qualities and experience. A separate questionnaire must also be completed for the AML manager.
- Description of AML/KYC procedures, transaction monitoring, and reporting of suspicious transactions, control measures, and risk management.
- Description of cybersecurity protocols, user asset security systems, and protection against cyberattacks.
- Evidence of sufficient financial resources for conducting the selected type of activity, reserve capital, and insurance.
- Payment of government fees depends on the type of activity: for registration of a crypto exchange – application fee – $6,250, registration fee – $18,750; other types of digital businesses pay $3,750, and there is also a government fee of $575 for the registration of directors and AML managers.
Step 3: SCB compliance.
The Securities Commission has set stringent requirements for the experience and knowledge of AML managers and administrators, so they undergo an interview and can only start working after approval by the authorities. In addition, the company must indicate the source of its initial capital and prove that it meets the requirements for sufficient regular capital and insurance.
Step 4: Approval from the SCB and commencement of operations.
The license is issued for an indefinite period, but annual government fees must be paid for its renewal (from $3,750 to $18,750), physical presence must be confirmed, and AML/CFT procedures must not be violated.
The Securities Commission has the right to revoke or suspend a license and impose sanctions (DARE Part VI, Sec. 60) in the event of violations, fraud, etc.
Most often, applicants are denied due to:
- Ineffective AML/CFT measures.
- Insufficient cybersecurity measures for storing digital assets and executing cross-border crypto transactions.
- Failure to comply with financial reporting standards.
Request more information about the Bahamas crypto license
What taxes apply to crypto companies in the Bahamas?
The Bahamas fintech license for crypto allows you to take advantage of tax benefits when conducting business operations, namely:
- No corporate tax.
- No capital gains tax.
- No inheritance tax or dividend tax.
- 12% VAT.
- Stamp duty from 2.5% to 10%.
Financial requirements have been established for fintech companies in accordance with the Financial Transactions Reporting Act and the DARE Act):
- Maintain financial records and submit them annually for review (no later than 4 months after the end of the reporting year).
- Hire an auditor to audit the financial records (report submitted to the SCB).
- Keep records for 5 years at the registered office.
FAQ on obtaining a Bahamas crypto license
How is the crypto market regulated in the Bahamas?
Crypto in the Bahamas is regulated by the Securities Commission of The Bahamas (SCB) under the DARE Act 2024. The act covers exchanges, custody, staking, broker-dealer services, and token issuance, and sets AML/CFT duties through the Financial Transactions Reporting Act and Anti-Terrorism Act. Any digital asset business operating in or from the islands must register before serving clients.
How much does a Bahamas crypto license cost?
An exchange pays a $6,250 application fee plus an $18,750 registration fee. Other digital asset activities pay $3,750, and each director or AML manager registration costs $575. Annual renewal runs $3,750–$18,750 depending on activity. The Bahamian dollar is pegged 1:1 to USD, so all figures apply directly.
How long does it take to obtain a Bahamas crypto license?
A Bahamas crypto license takes 3–12 months depending on registration category and application quality. Simple registrations clear faster; exchanges and custodians face deeper SCB review with fit-and-proper interviews and comment rounds. Incomplete AML documentation is the most common reason timelines stretch.
What is the minimum capital for a crypto company in the Bahamas?
Minimum capital starts at about $50,000 and scales with the activity type, business model, and risk profile. The SCB requires proof of the capital’s origin, and the amount also affects the annual fee under the IBC Act schedules. Custody and exchange operations sit at the higher end.
Is it possible to obtain a Bahamas crypto license remotely?
Yes, the filing itself can run remotely through a registered agent, and Gofaizen & Sherle manages SCB communication on your behalf. A local registered office and a resident compliance presence are still mandatory, and key managers should expect SCB interviews, which are conducted online in most cases.
Does a crypto company need a local office in the Bahamas?
Yes. The application must state a physical office address in the Bahamas, where corporate records are kept and inspections take place. A registered agent alone is not sufficient — the SCB expects real operational presence, including a locally available compliance officer.
Is the Bahamas crypto license the same as VASP registration?
Yes. The SCB registration under the DARE Act 2024 is the Bahamian equivalent of a VASP license used in other jurisdictions. It covers the same activity perimeter — exchange, transfer, custody, and participation in digital asset offerings — with AML/CFT obligations aligned to FATF standards.
Did the FTX collapse change Bahamas crypto regulation?
Yes. FTX was SCB-registered, and its collapse drove the DARE Act 2024 rewrite. The new act tightened client-asset segregation, expanded SCB supervisory powers, and brought staking, yield products, and stablecoin issuers into the regulated perimeter. The Bahamas now runs one of the stricter offshore digital asset regimes.
Can a Bahamas crypto company serve US clients?
A Bahamas registration does not authorize services to US residents. Serving the US market triggers FinCEN MSB registration and state-level money transmitter rules, which apply separately from DARE. Most operators use the Bahamas entity for non-US markets and structure US access through a dedicated licensed vehicle.
What penalties apply for operating without registration in the Bahamas?
Operating a digital asset business without SCB registration is an offense under the DARE Act 2024. The SCB can impose fines, order business cessation, suspend or revoke registration, and bar individuals from the sector under DARE Part VI. Enforcement intensified after the FTX collapse.
Bahamas vs Cayman Islands for a crypto license — what is the difference?
The Bahamas registers digital asset businesses with the SCB under the DARE Act 2024; the Cayman Islands registers VASPs with CIMA under the VASP Act. The Bahamas offers broader staking coverage and a single-regulator path, while Cayman pairs naturally with fund structures. See our Cayman Islands crypto license guide for the full comparison.
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