VASP license in Bahamas

Bahamas

Companies seeking to operate a crypto exchange, custody service, stablecoin issuer, or other digital asset business from or into the Bahamas must complete Digital Asset Business Registration — the official term used by the Securities Commission of The Bahamas under…

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Jurisdiction	Bahamas
License type	VASP license
Regulator	Securities Commission of The Bahamas (SCB)

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Requirements

Before applying for Digital Asset Business Registration, an applicant must first incorporate a Bahamian entity through the Registrar General's Department, Bahamas, which administers company incorporation, name reservation, and related corporate filings.

For most digital asset businesses conducting licensed activity locally, the Company Limited by Shares (Domestic/Regular Company) — the Bahamian equivalent of an LLC — is the recommended default vehicle, since it is domiciled in the Bahamas and can hold the registered office required for a locally regulated activity. Other legal forms are also available (see Basic company reference), including the International Business Company (IBC), Foundation, and partnership structures, though these are generally used for international structuring or non-licensed purposes rather than for holding a digital asset business registration.

Any Bahamian company, regardless of form, must maintain a registered office/agent in the Bahamas. For banking, applicants can reference CIBC FirstCaribbean International Bank, one of the banks operating in the jurisdiction.

The Bahamas positions itself as a dedicated digital-asset jurisdiction through the DARE Act, administered by the Securities Commission of The Bahamas, which also oversees the Securities Industry Act, 2024, the Financial and Corporate Service Providers Act, 2020, and the Carbon Credit Trading Act, 2022. Under Part III of the DARE Act, no person may carry on digital asset business in or from the Bahamas without being registered with the Commission, and this requirement applies extraterritorially to firms doing business with Bahamian residents.

Key requirements and features of the regime:

Registered key officers: every digital asset business must register a Chief Executive Officer, a Compliance Officer, and a Money Laundering Reporting Officer with the Commission, each subject to its own application and annual fee.
Risk-based capital, not a fixed minimum: the Commission may prescribe risk-based liquid capital requirements rather than a single fixed capital figure; exchanges are additionally required to hold Bahamas-based assets sufficient to cover at least 12 months of operating expenses.
Stablecoin controls: stablecoin issuers must fully back reserves and are prohibited from issuing algorithmic stablecoins.
Mining restriction: standalone digital-asset mining as a business is not permitted; only mining that is ancillary or proprietary to another registered activity is allowed.
Fee schedule under the Digital Assets and Registered Exchanges (Fees) Rules, 2024:
Digital Asset Exchange: application fee $6,250; registration fee $18,750; annual renewal fee $18,750.
All other digital asset businesses: application fee $3,750; registration fee $12,500; annual renewal fee $12,500.
Additional-activity fees: $7,500 application / $6,250 registration-renewal (per activity) for exchanges; $5,000 application / $3,750 registration-renewal (per activity) for other applicants.
Key officer registration (CEO, Compliance Officer, MLRO): $575 application, $800 annual, each.
Token offering filings (Part IV): $6,000 application fee for an offering memorandum; no fee for interim financial statements filed on time.
Other administrative fees: director appointment/change $620; approval of issue/transfer/disposal/re-categorization of digital assets $625; audit confirmation letter $500; replacement certificate $500; name change $500; interim-statement filing extension $700 per request (max 2 requests); surrender of registration certificate $500; exemption/modification applications $500.

Every registered digital asset business must register and maintain three key officer roles with the Commission: a Chief Executive Officer, a Compliance Officer, and a Money Laundering Reporting Officer, each registered individually (with its own application and annual fee) in addition to the entity-level registration.

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Securities Commission of The Bahamas (SCB)

Regulates digital asset businesses under the Digital Assets and Registered Exchanges (DARE) Act 2024. Oversees registration functionally equivalent to a VASP license, applying extraterritorially to entities doing business with Bahamian residents. Covers crypto-to-crypto and crypto-to-fiat exchange, custodial wallet services, staking/yield services, broker-dealer/OTC intermediation, and token issuance. https://scb.gov.bs/

Overview

Companies seeking to operate a crypto exchange, custody service, stablecoin issuer, or other digital asset business from or into the Bahamas must complete Digital Asset Business Registration — the official term used by the Securities Commission of The Bahamas under the Digital Assets and Registered Exchanges Act, 2024 (DARE Act) — which functions as this jurisdiction's equivalent of a VASP (Virtual Asset Service Provider) license. The Bahamian regime is legally framed as a registration rather than a licence, but it serves the same regulatory purpose: authorizing and supervising digital asset businesses, including those serving Bahamian residents from abroad.

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Licensing Process

Engraved gold medallion of official documents with the Bahamas skyline

Step 1

Incorporate a Bahamian company (Company Limited by Shares recommended) with the Registrar General's Department, including registered office/agent.

Engraved gold medallion of a document being filed with the Bahamas skyline

Step 2

Prepare and submit Form 1 Part A (Application for Registration as Digital Asset Business) to the Securities Commission of The Bahamas.

Engraved gold medallion of an ornate certificate with the Bahamas skyline

Step 3

Submit Form 2 Part A Personal Questionnaires for each director, founder, beneficial owner, officer, and significant interest holder.

Engraved gold medallion of an appointment ledger with the Bahamas skyline

Step 4

Register the mandatory key officers — CEO and Compliance Officer via Form 3 Part A, plus the Money Laundering Reporting Officer — with the Commission.

Engraved gold medallion of a bank ledger with the Bahamas skyline

Step 5

Pay the applicable application fee for the relevant category (Digital Asset Exchange or other digital asset business), and, where relevant, additional-activity fees.

Step 6

Upon approval, pay the registration fee and receive the digital asset business registration certificate.

Step 7

Maintain ongoing compliance: file the Annual Information Update Form (DARE), pay annual renewal fees, and submit interim financial statements within prescribed periods (for Part IV token offering registrants).

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Frequently Asked Questions

Is this a 'license' or a 'registration'?

Under the DARE Act, the Bahamas regulates digital asset business exclusively through registration with the Securities Commission of The Bahamas, not through a licence as such — the terms 'registration' and 'registrant' are used throughout the Act. Functionally, it serves the same purpose as a VASP license in other jurisdictions.

Which regulator handles this?

The Securities Commission of The Bahamas is the sole regulator for digital asset businesses under the DARE Act.

What entity should we incorporate first?

A Company Limited by Shares (Domestic/Regular Company), incorporated through the Registrar General's Department, is the recommended default vehicle, though other legal forms such as the IBC are also available for different purposes.

Is there a fixed minimum capital requirement?

No single fixed capital figure is set in the Act; the Commission may instead prescribe risk-based liquid capital requirements, and exchanges must separately hold Bahamas-based assets covering at least 12 months of operating expenses.

Do we need to register individual staff, not just the company?

Yes — the CEO, Compliance Officer, and Money Laundering Reporting Officer of a digital asset business must each be individually registered with the Commission, each with its own fee.

Can we run a crypto mining business under this registration?

Standalone mining as a business is not permitted; only mining that is ancillary or proprietary to another registered digital asset activity is allowed.

What fees should we budget for beyond the application?

Beyond the application fee, budget for the registration fee, the annual renewal fee, key officer registration/annual fees, and administrative fees such as director changes, audit confirmation letters, or name changes, all set out in the Digital Assets and Registered Exchanges (Fees) Rules, 2024.

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