Legislation which provides for regulations to govern blockchain applications and other financial technology solutions has been finalized.
The Emergent Technologies Bill, 2020, which has been obtained by Guardian Business, lays out the framework for what is considered a blockchain, digital distributed ledger arrangement or service provider, the guidelines for the registration of service providers, fees, identified risks, offenses and administrative fines.
The recognized emergent technology arrangements that would fall under this bill include software and architectures which are used in designing and delivering distributed ledger technology or blockchain, which ordinarily but not necessarily uses a distributed, decentralized shared and replicated ledger, may be public or private or hybrids of both, can be permissioned or not, is secure to a high level against retrospective tampering such that the history of transactions cannot be replaced, is protected with cryptography and is auditable.
Other arrangements include smart contracts and related applications including decentralized, autonomous organizations and any other technology service which may be designated by the minister of finance.
The bill goes hand in hand with the Virtual Innovation Authority Bill, 2020, which would establish a body to administer the regulations of this bill.
Blockchain applications of financial technology solutions are considered one of many innovations that could impact the delivery of Bahamian financial services.