A Bahamian market regulator has investigated the recent collapse of the FTX exchange. It was to be expected by the majority of crypto users since FTX Digital Markets, a unit of FTX, is licensed in the Bahamas.
The Bahamas Safety Commission is reportedly on a trail, monitoring developments on the collapse of FTX, including efforts by other entities to try to save the crypto exchange.
FTX has a strong presence in the Bahamas
The executives and senior executives of the FTX exchange are located in the Bahamas. Several of them, including the founder and CEO of the company, live freely on the island. Most of them are said to have bought homes in the island’s luxurious neighbourhoods, including the gated community of Albany.
Before its collapse, FTX had planned to expand its headquarters in the Bahamas. It could have led to the employment of about 700 people. As part of its social responsibilities, the company has been heavily involved in charitable work in the Bahamas. It has also pumped a lot of money into the economy.
The exchange has a solid foundation in the Bahamas, most likely due to the country’s accommodative digital asset law. This law was designed to attract digital finance players, enabling the nation to become a financial centre for digital asset companies.
Based on these factors and because of a significant presence in the community, it is entirely appropriate that investigations into this issue begin in the Bahamas. Besides knowing the real reason for FTX’s collapse, it will help the nation prevent a similar event from happening again.