FTX, a cryptocurrency exchange, has solidified its ties with the Bahamas by breaking ground on its new offices in Nassau on Monday. The move, which was announced in part by FTX’s co-CEO Ryan Salame, might serve as a bellwether for other crypto companies interested in taking advantage of the island country’s favorable tax and regulatory regimes.
FTX was established by billionaire Sam Bankman-Fried and is incorporated in Antigua and Barbuda, with its new headquarters in Nassau, Bahamas. According to local news outlet The Nassau Guardian, the corporation aims to build a campus at the same location that will cost up to $60 million and will house 1,000 employees. The complex will have a 34-room boutique hotel as well as commercial space.
The crypto derivatives marketplace relocated from Hong Kong to safer seas last year, citing friendlier rules and the absence of an obligatory Covid-19 quarantine upon arrival. The special administrative region’s bout and subsequent failure to maintain its democratic government, combined with its “draconian” pandemic measures, has caused international companies to reconsider their future in Hong Kong. Jurisdictions such as Singapore and the Bahamas, according to some, appear to be more optimistic.
In a September email to Blockworks, Bankman-Fried stated that “the proactive position taken by The Bahamas and its regulatory agencies on cryptocurrencies” was a significant driver for the move.
Bahamian Prime Minister Philip Davis, who attended the ceremony with FTX’s Bankman-Fried, says that the transaction left “positive footprints” across the country. Phillip Davis tweeted, “Today, they continue to make positive impressions with the ground-breaking of their new headquarters,”
The announcement by FTX comes after the Davis administration released a policy white paper on the subject “The Future of Digital Assets in The Bahamas.”
There are intents to broaden the reach of present regulatory frameworks, foster innovation, and create skills to fill high-demand crypto-friendly employment, among the policy objectives set forth therein. According to a Tuesday press release, the government would rely on collaborations with the University of The Bahamas, the Bahamas Technical and Vocational Institute, FTX, and other financial institutions to develop critical skills.
The report also lays out intentions to increase the Securities Commission of The Bahamas’ resources to strengthen its role as the primary crypto regulator. The report lays out the island nation’s four-year plan to convert itself into a world-class destination.