Attorney General Ryan Pinder said yesterday that Fintech firms will not find large jurisdictions friendly to their flexibility and innovation requirements and contended that small international financial centers like The Bahamas is where these kinds of firms will be nurtured and allowed to grow while being subject to world-class regulations.
Pinder, who spoke during the D3 Bahamas Conference, said while The Bahamas suffered the insolvency of FTX, the country has continued to attract licensees who want to be registered under the country's Digital Assets and Registered Exchanges (DARE) legislation.
He contended that the fall of FTX had a "material effect on the industry in The Bahamas".
However, he maintained that the industry is still viable and encouraged firms to choose a jurisdiction like The Bahamas where their industry is properly regulated.
"I would put forward that large economies are not where Fintech firms will be given the flexibility and predictability to innovate, it is the smaller international financial centers that meet internationally recognized regulatory standards and have the natural human resources and infrastructure for Fintech operations is where the industry will be given a suitable platform to grow, innovate and be successful," Pinder said.
"Naturally, I propose that The Bahamas is just this place. But don't judge us by what we say, but by the accomplishments that we have achieved, and the policy and regulatory reforms we propose.
"The Bahamas is a jurisdiction that takes pride in leading from the front and advancing regulatory innovation and compliance."
He added: "The industry is still a viable industry. I view the industry as not just a cryptocurrency related industry, but a Fintech industry.
"The components of the Fintech industry move and evolve so quickly that we shouldn't view it as a single component. We should view it as a transformational Fintech industry where we want to continue to innovate and continue to lead from the front."
Pinder said The Bahamas' "aggressive" approach to innovative legislation in the digital assets space is what is required of the country to be an industry leader in the space.
He said the country also has to ensure that other laws that could be relevant to this space keep pace with the advancements.
"We are developing new cyber-crime legalization, and we also are drafting a new Public Disclosure Act and regime that considers data security in the modern digital world, including aspects relate to artificial intelligence," said Pinder.
"We must be holistic and comprehensive in our approach."
He added: "The Bahamas is committed to regulatory integrity in Fintech. It is our fundamental belief that regulatory security, but not regulation to stymie development, is a fundamental necessity for Fintech innovation and growth."
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