Sunday, December 27, 2020

Here is how a Bahamian Resident is able to Purchase Cryptocurrencies in The Bahamas

IslandBit sought persistently to acquire cryptocurrencies in BSD

Dear Clients,

Thank you for you overwhelming support, encouragement and concern during this time.
There has been much discussion about our notice dated Wednesday December 23rd, 2020 that prompts us to clarify a few points.
IslandBit was developed during a time of economic recovery efforts. We are strong supporters of economic development and realise the importance of healthy foreign reserves.

As such, we built our business with the Bahamas and Bahamians in mind. We sought persistently to acquire cryptocurrencies in BSD- and only in BSD- so that the impact on foreign reserves were lessened to the point of negation.

Our business was resultantly allowed to operate by the Central Bank and The Securities Commission allowing us to make crypto more accessible and more affordable to Bahamians than most methods.
In our previous notice, it was never our intimation that the Central Bank does not allow Bahamians to own cryptocurrencies. Instead, our notice intended to inform our clients that, at this time, purchases of crypto for Bahamian residents who did not acquire investment dollars through the ICM prior to its suspension on 1st May 2020 is prohibited.

We were expressly informed that the suspension of ICM transactions “would not permit residents to acquire foreign currency assets such as crypto currencies at this time.”
To avoid any further confusion, here is how a Bahamian Resident is able to purchase cryptocurrencies based on our communications with the Central Bank:

1. Cryptocurrencies have been deemed a “foreign currency denominated asset” and must be purchased in a currency other than Bahamian dollars
2. If you are a Bahamian resident (Citizen or foreigner with the right to earn Bahamian dollars) you require permission from the investment currency market (ICM) to purchase crytpocurrencies. If you have prior approval from the ICM you may purchase cryptocurrencies with previously approved investment dollars.

3. If you do not have prior approval from the ICM, you must apply to purchase cryptocurrencies. (Note: The ICM has been suspended since May 2020 and no date has been scheduled for resumption.)

4. The purchase of cryptocurrencies via credit and debit cards also requires approval of the ICM because of the intervening foreign currency access.
IslandBit remains in contact with regulators and is actively pursuing the appropriate pivot that allows the country to benefit from our business model which has the least impact on foreign reserves while addressing the concerns of the Central Bank.