Bahamas
AI Agent Legal Status: favorable · Autonomy: moderate
Legal Framework
The Bahamas enacted the Digital Assets and Registered Exchanges (DARE) Act in 2020, creating one of the most comprehensive crypto regulatory frameworks in the Caribbean. The Securities Commission of The Bahamas (SCB) regulates digital asset businesses. The Central Bank launched the Sand Dollar CBDC in 2020, the world's first fully deployed CBDC. The jurisdiction combines established offshore financial center infrastructure with progressive digital asset regulation.
Key Laws & Regulations
- ◆Digital Assets and Registered Exchanges (DARE) Act 2020
- ◆Sand Dollar CBDC framework (Central Bank of The Bahamas)
- ◆Securities Industry Act 2011 (as amended for digital assets)
- ◆Data Protection (Privacy of Personal Information) Act 2003
- ◆Financial and Corporate Service Providers Act
Business Formation
International Business Companies (IBCs) under the IBC Act. Digital asset businesses must register under the DARE Act with the SCB. Segregated Accounts Companies (SACs) useful for fund structures. English common law system with well-established corporate service provider ecosystem. No specific AI entity recognition but DARE Act provides pathway for digital asset businesses.
Tax Implications
No income tax, corporate tax, capital gains tax, or withholding tax. Revenue raised through VAT (10%), stamp duties, and business license fees. DARE Act registered entities pay licensing and registration fees to the SCB. Tax-free environment is the primary attraction for international digital businesses. OECD pressure on tax transparency increasing.
Opportunities
Post-FTX regulatory tightening actually strengthens the DARE Act framework's credibility. Sand Dollar CBDC infrastructure enabling programmable money applications. Tax-free operations for digital businesses. SCB licensing providing legitimacy and market access. Growing digital asset ecosystem despite FTX setback. Potential to attract AI-crypto convergence businesses.
Highlights
DARE Act providing comprehensive digital asset regulatory framework. Sand Dollar — world's first fully deployed CBDC. No income or capital gains tax. Established international financial center. English-speaking with common law system. SCB providing clear licensing pathway for digital asset businesses. Proximity to the US (50 miles from Florida).
Risks & Challenges
FTX collapse (headquartered in Bahamas) damaged reputation as digital asset jurisdiction. Increased regulatory scrutiny post-FTX. Small domestic market. Vulnerability to hurricanes. OECD pressure on tax haven status. DARE Act compliance costs significant for smaller entities. Brain drain of tech talent.