Antigua and Barbuda

**Report on the Current Status of Retail Cryptocurrency Trading in Antigua and Barbuda**

**Topic:** Retail_Trading_Status
**Description:** Assess whether individual citizens and residents in the country are legally permitted to buy, sell, and hold cryptocurrencies. Detail the regulatory environment surrounding this activity (e.g., KYC/AML requirements imposed on platforms, general warnings issued).

**1. Current Status:** `Allowed-Regulated`

**2. Detailed Narrative Explanation:**

Individual citizens and residents in Antigua and Barbuda are permitted to buy, sell, and hold cryptocurrencies. The country has established a specific legal framework to regulate digital asset activities, moving beyond a state of being unregulated or simply tolerated.

In 2020, Antigua and Barbuda enacted the Digital Assets Business Act (DABA), followed by the Digital Assets Business Regulations in 2021. This legislation provides a comprehensive framework for regulating businesses involved with digital assets, including cryptocurrencies. The Financial Services Regulatory Commission (FSRC) is designated as the supervisory and regulatory authority responsible for overseeing these businesses.

Key aspects of the regulatory environment include:

*   **Licensing Requirement:** Any entity wishing to operate a "digital assets business" in or from within Antigua and Barbuda must obtain a license from the FSRC. This includes businesses involved in issuing, selling, redeeming digital assets, operating exchanges, providing custodial wallet services, or acting as brokers or dealers. Even offshore businesses providing services to persons in Antigua and Barbuda may need to be registered or licensed.
*   **Definition of Digital Assets:** The DABA defines digital assets broadly, encompassing digital representations of value used as a medium of exchange, unit of account, or store of value (even if not legal tender), as well as tokens representing assets, debt, equity, or access rights via distributed ledger technology. This definition includes cryptocurrencies, stablecoins, and NFTs.
*   **AML/CFT Compliance:** Digital asset businesses are subject to Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) requirements. The Money Laundering (Prevention) (Amendment) Act of 2021 specifically reinforces AML measures for these businesses. The Office of National Drug and Money Laundering Control Policy (ONDCP) acts as the Supervisory Authority for financial institutions under the Money Laundering Prevention Act (MLPA), which includes oversight related to digital asset businesses. Licensed entities must comply with KYC (Know Your Customer) obligations.
*   **Regulatory Oversight:** The FSRC enforces the legal framework, including licensing, operational standards, record-keeping, disclosure, and ongoing obligations for licensed digital asset businesses. Non-compliance can result in significant fines and potential criminal charges.
*   **Government Stance:** The government has actively positioned Antigua and Barbuda as a crypto-friendly jurisdiction to attract investment and diversify the economy, particularly in the fintech sector. This is evident through the passage of the DABA and related regulations.

While the framework primarily targets businesses (VASPs - Virtual Asset Service Providers), its existence means that retail trading occurs within a regulated environment where the platforms and intermediaries offering services are subject to specific rules, including consumer protection aspects and AML/CFT checks.

However, it's important to note the distinction between regulating the *businesses* providing services and regulating the *act* of individual trading itself. While individuals are free to trade, the regulatory burden falls on the service providers. The Eastern Caribbean Central Bank (ECCB), the monetary authority for the region including Antigua and Barbuda, has issued warnings regarding the risks associated with cryptocurrencies, such as volatility, fraud (like 'rug pulls' and 'pump and dump' schemes), and cyber-attacks, particularly emphasizing risks in unregulated environments or with unregulated entities. They have also clarified that services like Bitcoin ATMs observed in the country were not regulated by the ECCB, ECSRC, or FSRC at the time of the warning (May 2021), highlighting that while the DABA existed, the full regulatory infrastructure (specifically the detailed regulations) was still being finalized. Despite these warnings about inherent risks, the existence of the DABA 2020 and its associated regulations creates a regulated space for the *businesses* facilitating retail trading.

**3. Specific Excerpts/Summaries from Sources:**

*   **Digital Assets Business Act (DABA) 2020 & Regulations 2021:** "In Antigua and Barbuda, the regulatory landscape for digital assets is governed by a series of key legislations... The Digital Assets Business Act of 2020 (DABA), along with the Digital Asset Business Regulations of 2021, lay down the foundational framework for overseeing digital asset businesses, providing guidelines on licensing, operational standards, and reporting requirements." (Source: Charltons Quantum)
*   **Licensing Mandate:** "Any person who wishes to operate a digital assets business in the Antigua & Barbuda needs to obtain a Digital Assets License. DABs are required to comply with the regulations set out in the DABA and the Digital Assets Business Regulations 2021." (Source: Charltons Quantum) "The Financial Services Regulatory Commission of Antigua and Barbuda advises the general public that the Digital Assets Business Act 2020 requires all persons carrying on digital assets business... to be licensed by the Commission which is the designated and sole licensing and regulatory body..." (Source: Antigua News Room / FSRC Notice)
*   **Regulatory Body:** "The regulatory body overseeing the regulations is the Antigua and Barbuda's Financial Services Regulatory Commission (FSRC) ensuring that businesses comply with any KYC (know-your-customer) obligations and anti-money laundering (AML)." (Source: JH Marlin)
*   **AML/CFT Application:** "The Antigua and Barbuda's Money Laundering (Prevention) (Amendment) Act of 2021 (MLPA) reinforces anti-money laundering measures specific to digital asset businesses, enhancing regulatory oversight and risk mitigation efforts." (Source: Charltons Quantum)
*   **ECCB Warnings:** "The Eastern Caribbean Central Bank (ECCB)... advises the public that the ECCB does not regulate Bitcoin Cash... The public is hereby advised to be mindful of the risks associated with utilising Bitcoin Cash or any cryptocurrency as a payment or investment instrument.” (Source: Loop News, referencing ECCB statement) "The ECCB advises persons to be diligent and undertake careful research before participating in online crypto token ventures which are often used as vehicles for 'rug pull' and 'pump and dump' scams..." (Source: ECCB via St. Lucia Times / WINNFM 98.9)
*   **Status of Regulation Implementation (as of mid-2021):** Regarding Bitcoin ATMs, "...these Bitcoin ATMs and the services provided are not currently regulated by the ECCB, the ECSRC or the FSRC of Antigua and Barbuda... In Antigua and Barbuda, the Digital Assets Business Act... was passed in 2020. This Act gives the FSRC authority to enforce the legal framework... but the infrastructure especially the regulations are not yet in place to comprehensively regulate the activities... These regulations are currently being prepared." (Source: ECCB/ECSRC/FSRC Joint Statement via ECCB website, May 2021). *Note: The Digital Assets Business Regulations were subsequently issued in 2021.*

**4. Source URLs:**

*   **Charltons Quantum (Overview of Digital Assets Regulation):** `https://charltonsquantum.com/an-overview-of-the-regulation-of-digital-assets-in-the-antigua-barbuda/` (Provides detailed summary of DABA 2020 and Regulations 2021)
*   **ECCB Website (Joint Statement on Bitcoin ATMs - May 2021):** `https://www.eccb-centralbank.org/news/view/bitcoin-atm-and-bitcoin-investments-not-authorised-by-regulators-in-eccu`
*   **ECCB Website (General Crypto Warnings / Fraud Alerts):** `https://www.eccb-centralbank.org/news/view/eccb-warns-of-fraudulent-stablecoin` (Example recent warning, Jan 2025)
*   **Antigua News Room (FSRC Licensing Notice - July 2021):** `https://antiguanewsroom.com/all-persons-carrying-on-a-digital-assets-business-must-be-licensed-fsrc/`
*   **JH Marlin (Summary of Regulations):** `https://www.jhmarlingroup.com/antigua-and-barbuda-cryptocurrency-laws/`
*   **Loop News (ECCB Warning Post-FTX):** `https://caribbean.loopnews.com/content/eccb-warns-about-volatility-crypto-assets-following-ftx-crash`
*   **FSRC Website (Access to Legislation - Link mentioned in ANR article):** `https://www.fsrc.gov.ag/laws-regulations/digital-assets-business` (Direct link to legislation section likely containing DABA and Regulations)
*   **ONDCP Antigua and Barbuda (AML/CFT Oversight):** `https://ondcp.gov.ag/financial-compliance-unit/`