Key Takeaways
- • The Bahamas Securities Commission's first supervision and surveillance report on the digital assets sector shows on-chain transaction volume contracted by more than 70 percent from late 2022 peak to end-2023 trough, following FTX's November 2022 collapse.
- • Only 2.03 percent of digital asset transactions tied to the jurisdiction in the 16 months to end-December 2025 were linked to criminal activity, with 0.27 percent linked to higher-risk services.
- • Criminal-activity exposure rose to 2.8 percent in January to July 2026, which the regulator attributed mainly to flows to a single international exchange sanctioned in May 2026, involving an estimated $468,376.
- • The sector now serves more than 2.159 million clients worldwide holding $33.65bn in customer assets, while only 1,376 clients with $16.5m in assets reside in The Bahamas.
- • Registered sector participants grew from 10 at December 31, 2022 to 35, with 20 active, and the securities and investment fund administration sector was rated medium-to-high risk.
Summary
The Securities Commission of The Bahamas has released its first-ever supervision and surveillance report on the country's digital assets and cryptocurrency sector, according to reporting by Tribune Business Editor Neil Hartnell. The report states that digital asset business involving The Bahamas "contracted by more than 70 percent" in the year after the November 2022 collapse of FTX. The regulator said activity has since been "materially smaller and event driven," with an estimated $401.9m in on-chain volume between September 2024 and December 2025 and $70.1m between January and July 2026.
The regulator said exposure to criminal activity and higher-risk services remains small. Of flows traced to classified destinations between September 2024 and December 2025, 97.7 percent went to legitimate services, 2.03 percent to services associated with criminal activity, and 0.27 percent to higher-risk services. For January to July 2026, the estimates were 97.12 percent, 2.8 percent and 0.07 percent respectively. The commission attributed the increase principally to flows to a single international exchange designated by a foreign sanctions authority in May 2026, most of which predated the designation. Three suspected unregistered services connected to the jurisdiction are under monitoring, and the commission reiterated that operating an unregistered digital assets firm from The Bahamas is an offence.
The sector now serves more than 2.159 million clients worldwide with combined customer assets of $33.65bn. Only 1,376 clients, holding $16.5m, are based in The Bahamas, and 65 are classified as politically exposed persons. Registered participants have risen from ten at December 31, 2022 to 35, of which 20 are active. The regulator rated 22 percent as low supervisory risk, 69 percent as medium-to-low and 9 percent as medium-to-high. Suspicious transaction reports related to digital assets were 342 in 2022, of which some 330 were linked to FTX, falling to 34 in 2023 before rising to 164 in 2024 and 206 in 2025.
Since January 2026 the commission has conducted 16 on-site examinations and five Travel Rule reviews, assessing 17 of its 20 active registrants. The examinations produced 82 findings, more than half involving late or missed legal filing requirements, and none related to missed sanctions exposure. The regulator stated that no finding indicated a designated or sanctioned person went unreported or that assets that should have been frozen were not.
The commission also designated the securities and investment fund administration sector, which held $256.6bn in client assets at end-December 2025 and $45.6bn in investment fund net asset value under administration, as medium-to-high risk, citing its high value, international client base and remote onboarding. The sector had 202 licensees and around 850,000 clients at year-end 2025, 86 percent of them abroad.
The regulator said exposure to criminal activity and higher-risk services remains small. Of flows traced to classified destinations between September 2024 and December 2025, 97.7 percent went to legitimate services, 2.03 percent to services associated with criminal activity, and 0.27 percent to higher-risk services. For January to July 2026, the estimates were 97.12 percent, 2.8 percent and 0.07 percent respectively. The commission attributed the increase principally to flows to a single international exchange designated by a foreign sanctions authority in May 2026, most of which predated the designation. Three suspected unregistered services connected to the jurisdiction are under monitoring, and the commission reiterated that operating an unregistered digital assets firm from The Bahamas is an offence.
The sector now serves more than 2.159 million clients worldwide with combined customer assets of $33.65bn. Only 1,376 clients, holding $16.5m, are based in The Bahamas, and 65 are classified as politically exposed persons. Registered participants have risen from ten at December 31, 2022 to 35, of which 20 are active. The regulator rated 22 percent as low supervisory risk, 69 percent as medium-to-low and 9 percent as medium-to-high. Suspicious transaction reports related to digital assets were 342 in 2022, of which some 330 were linked to FTX, falling to 34 in 2023 before rising to 164 in 2024 and 206 in 2025.
Since January 2026 the commission has conducted 16 on-site examinations and five Travel Rule reviews, assessing 17 of its 20 active registrants. The examinations produced 82 findings, more than half involving late or missed legal filing requirements, and none related to missed sanctions exposure. The regulator stated that no finding indicated a designated or sanctioned person went unreported or that assets that should have been frozen were not.
The commission also designated the securities and investment fund administration sector, which held $256.6bn in client assets at end-December 2025 and $45.6bn in investment fund net asset value under administration, as medium-to-high risk, citing its high value, international client base and remote onboarding. The sector had 202 licensees and around 850,000 clients at year-end 2025, 86 percent of them abroad.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.