Crypto Licensing - Bahamas

About Bahamas

The Bahamian Parliament passed the Digital Assets and Registered Exchanges Bill in November 2020, making it one of the first pieces of legislation in the world to provide registration and legal standing for digital assets. The Bahamas was ranked first in the crypto regulation league by 2020.

Legal entities wishing to obtain cryptocurrency licences in the Bahamas or conduct operations from its territory must be certified in line with the provisions of this legislation. An application in special form, stating the type of activity, must be filed along with the papers required by the Law.

The Bahamas is a country in the northwestern West Indies, lying 80 kilometres (50 miles) south of Florida’s (USA) coast and north of Cuba. The Caribbean island chain comprises of over 700 islands and islets, as well as over 2,000 cays (coral reefs). There are only about 30 inhabited islands.

According to Worldometer’s elaboration of the most recent United Nations data, the current population of the Bahamas is 403,925 as of Tuesday, May 9, 2023. According to UN data, the Bahamas 2020 population is predicted to be 393,244 people at the mid-year point.

While English is the official language of the Bahamas, people talk in a Bahamian dialect that has given rise to a plethora of distinctive slang words and phrases. You might want to brush up on your island jargon before your vacation. Here are five of the most commonly heard phrases in the Bahamas.

The legal system in the Bahamas is based on English common law, which has been supplemented since 1964 by an American style of constitutionalism that states the presence of certain fundamental principles that must be obeyed and enforced. The Constitution guarantees certain rights.

  • Absolute Anonymity
  • There is no corporate income tax.
  • There is no personal income tax.
  • In the Bahamas, dividend income from foreign investments is not taxable.
  • In the Bahamas, royalties are not taxed.
  • There is no need for tax returns.
  • There will be no information sharing.
  • The names of stockholders are not made public.
  • Annual Fee is Low


License: Digital Asset Business License
Timeframe for Approval: Within 6 months
Regulator: Securities Commission of the Bahamas

Company Structure

Local Director: Minimum 1 director (can be only natural persons, no nationality or residency restrictions)
Local Shareholder: Minimum 1 shareholder (can be natural or legal persons, no nationality or residency restrictions)
Local Registered Office: Required
Local Staff: Required
Compliance Officer: Required
AML/KYC: Required
Audit: Required
Economic Substance: Required
Corporate Tax Rate: 25% for listed companies and 35% for unlisted public and private limited companies
Currency: Bahamian Dollar
Minimum Paid-up Capital: 50,000 Bahamian dollars
Capital Requirement: BS$500,000

The steps that follow will be taken in order to receive a licence:

  1. Application for firm name reservation
  2. Preparation and filing of an application for a Dealing in Securities Licence to the Commission
  3. Application and incorporation paperwork preparation and submission to the Registry
  4. The incorporation of the business
  5. Account opening at a local bank
  6. Getting the Licence
  • Digital asset services
  • Regulatory compliance
  • Security measures
  • Capital requirements
  • Reporting and transparency
  • Investor protection
  • Governance and accountability

Documents required by all involved individuals

(including but not limited to directors, shareholders and beneficial owners)

  • Passport copy (Notarised)
  • Utility Bill issued within the last 3 months (Notarised)
  • CV or Resume for each involved individual
  • Two professional reference letters
  • Qualifications (Notarised)

For Corporate Shareholders

  • Articles of Association in English
  • Registered office address documents (Notarised)
  • Company Register of director/s
  • Company Register of UBOs (shareholder register, or incumbency certificate, or share certificates)
  1. Formation of international business corporation.
  2. Preparation and drafting of shareholder and officer agreements.
  3. Preparation and drafting of narrative business plan.
  4. Prepare five year financial projections.
  5. Preparation and drafting of current financial statements
  6. Preparation and drafting of personal financial statements for owners.
  7. Identification and draft letters naming principal representative and auditor.
  8. Draft and prepare required bank charter and prospectus
  9. Preparation and drafting application with regulatory authorities.
  10. Respond and draft responses to regulatory authority application inquiries.
  11. Facilitate and consummate bankcard relationship with prepaid card program managers
  12. Preparation and drafting of policy agreements and related documents.
  13. Facilitate and consummate IBAN and correspondent bank relationship
  14. Provide for required physical presence and local director
  15. Preparation and review of client greements, website disclosures and related agreements.