Grenada

Retail_Trading_Status

Allowed-Regulated Unknown

Analysis ID: #102
Version: Archived
Created: 2025-04-12 06:46
Run: 3602effb...
History: View all versions
Workflow Stage: Live

Executive Summary

In Grenada, retail cryptocurrency trading is permitted but regulated primarily through the Virtual Asset Business Act of 2021, which focuses on Virtual Asset Service Providers (VASPs). The Grenada Authority for the Regulation of Financial Institutions (GARFIN) oversees VASPs, enforcing AML/CFT compliance, KYC, and registration requirements. Cryptocurrencies are not legal tender, and the ECCB advises caution due to inherent risks; they have also launched DCash, their own CBDC. No specific crypto tax regulations exists, taxation of crypto activities currently falls under general tax laws (Income Tax Act, VAT Act) with crypto generally treated as intangible assets.

Key Pillars

Primary Regulator: The Grenada Authority for the Regulation of Financial Institutions (GARFIN) is responsible for registering and supervising VASPs, ensuring compliance, and enforcing the VABA.
Core Compliance: Registered VASPs are mandated to comply with Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) regulations. This involves implementing customer due diligence (KYC), record-keeping, and reporting suspicious transactions.
Licensing/Registration: VASPs must register with GARFIN; this includes VASPs operating offshore but providing services to Grenadian residents.

Landmark Laws

Virtual Asset Business Act, 2021 (VABA):
Date of Issue: 2021
Summary: Establishes a comprehensive legal framework for Virtual Asset Service Providers (VASPs) operating in or from Grenada, or offering services to persons in Grenada. It mandates registration and supervision of VASPs and requires compliance with AML/CFT regulations.

Considerations

Cryptocurrencies like Bitcoin are not considered legal tender in Grenada; the official currency is the Eastern Caribbean Dollar (XCD).
The Eastern Caribbean Central Bank (ECCB) has issued advisories urging the public to exercise caution and be mindful of the significant risks associated with cryptocurrency investments and transactions, highlighting their volatility and the lack of investor protection inherent in decentralized systems.
Taxation of crypto activities currently falls under general tax laws (Income Tax Act, VAT Act) as there are no specific crypto tax regulations yet, with crypto generally treated as intangible assets.

Notes

The ECCB has been actively piloting its own Central Bank Digital Currency (CBDC), known as DCash, which is a digital form of the EC dollar and legal tender within participating ECCU countries, including Grenada.
The ECCB reminds the public that the Eastern Caribbean (EC) Dollar, together with its digital form, DCash, remains the sole currency which bears the status of legal tender in the ECCU.
Grenada is a member of the Financial Action Task Force (FATF) via the Caribbean Financial Action Task Force (CFATF).

Detailed Explanation

The retail trading of cryptocurrencies is 'Allowed-Regulated' in Grenada. There is no explicit prohibition on individual ownership or peer-to-peer trading outside regulated intermediaries. However, the Virtual Asset Business Act, 2021 (VABA) establishes a comprehensive legal framework for Virtual Asset Service Providers (VASPs) operating in or from Grenada, or offering services to persons in Grenada. This regulation extends to businesses facilitating cryptocurrency transactions, including exchanges, wallet providers, crypto fund managers, and custody services.

VASPs are required to register with the Grenada Authority for the Regulation of Financial Institutions (GARFIN), which oversees compliance and enforces the VABA. This includes VASPs operating offshore but providing services to Grenadian residents. Registered VASPs must comply with Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) regulations, including customer due diligence (KYC), record-keeping, and reporting suspicious transactions. These measures align with international standards set by the Financial Action Task Force (FATF), of which Grenada (via the Caribbean Financial Action Task Force - CFATF) is a member.

The VABA aims to ensure that VASPs adhere to standards promoting consumer protection and market integrity. Cryptocurrencies like Bitcoin are not considered legal tender in Grenada. The official currency is the Eastern Caribbean Dollar (XCD). The Eastern Caribbean Central Bank (ECCB), the monetary authority for Grenada and other ECCU members, has explicitly stated this and has issued advisories urging the public to exercise caution and be mindful of the significant risks associated with cryptocurrency investments and transactions, highlighting their volatility and the lack of investor protection inherent in decentralized systems.

The ECCB has been actively piloting its own Central Bank Digital Currency (CBDC), known as DCash, which is a digital form of the EC dollar and legal tender within participating ECCU countries, including Grenada. DCash is distinct from decentralized cryptocurrencies like Bitcoin. While individual retail trading is allowed, the regulatory focus on VASPs means that most formal avenues for trading (e.g., using exchanges accessible to Grenadians) fall under a regulated umbrella, necessitating AML/CFT checks and adherence to conduct rules by the service providers. Taxation of crypto activities currently falls under general tax laws (Income Tax Act, VAT Act) as there are no specific crypto tax regulations yet, with crypto generally treated as intangible assets.

Summary Points

Okay, here's the regulatory analysis report on Retail_Trading_Status in Grenada, converted into a clear, well-structured bullet point format:

Retail Cryptocurrency Trading Status in Grenada: Regulatory Analysis
(Report Date: April 12, 2025)

I. Overall Regulatory Status

Allowed-Regulated: Retail cryptocurrency trading (buying, selling, holding) is permitted, but the environment is regulated primarily through the regulation of Virtual Asset Service Providers (VASPs).

II. Key Regulatory Bodies & Their Roles

Grenada Authority for the Regulation of Financial Institutions (GARFIN):
- Primary regulatory authority for virtual asset businesses.
- Responsible for:
  - Registering and supervising VASPs.
  - Ensuring compliance with the Virtual Asset Business Act (VABA) 2021.
  - Enforcing penalties for non-compliance.
Eastern Caribbean Central Bank (ECCB):
- Monetary authority for Grenada and other ECCU members.
- Roles:
  - Issues advisories to the public regarding the risks associated with cryptocurrency investments.
  - Clarifies that cryptocurrencies like Bitcoin are not legal tender.
  - Piloting and promoting DCash, the ECCB's Central Bank Digital Currency (CBDC), which is legal tender.
Financial Intelligence Unit (FIU):
- Issues warnings related to cryptocurrency risks.
Eastern Caribbean Securities Regulatory Commission (ECSRC):
- Issues warnings related to cryptocurrency risks.

III. Key Legislation & Regulations

Virtual Asset Business Act, 2021 (VABA):
- Establishes the legal framework for VASPs operating in or from Grenada, or offering services to persons in Grenada.
- Key provisions:
  - Mandates registration and supervision of VASPs.
  - Requires VASPs to comply with Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) regulations.
  - Aims to ensure consumer protection and market integrity.
Income Tax Act & VAT Act:
- General tax laws that currently apply to crypto activities, treating crypto as intangible assets.

IV. Requirements for Compliance (VASPs)

Registration with GARFIN: VASPs must register with GARFIN to operate legally.
AML/CFT Compliance:
- Implement Customer Due Diligence (KYC) procedures.
- Maintain records of transactions.
- Report suspicious transactions.
- Align with international standards set by the Financial Action Task Force (FATF) via CFATF membership.
Consumer Protection & Market Integrity: Adhere to standards promoting consumer protection and market integrity.

V. Notable Restrictions & Limitations

No Legal Tender Status: Cryptocurrencies like Bitcoin are not legal tender in Grenada. The official currency is the Eastern Caribbean Dollar (XCD).
ECCB Warnings: The ECCB has issued advisories urging the public to exercise caution and be mindful of the significant risks associated with cryptocurrency investments.
Limited Investor Protection: Decentralized cryptocurrency systems lack inherent investor protection.

VI. Recent Developments & Changes

Enactment of the Virtual Asset Business Act, 2021 (VABA): This is the most significant recent development, establishing the regulatory framework for VASPs.
ECCB's DCash Pilot: The ECCB is actively piloting DCash, its CBDC, which is a digital form of the EC dollar and legal tender within participating ECCU countries, including Grenada.
Taxation: Crypto activities are taxed under general tax laws (Income Tax Act, VAT Act) as there are no specific crypto tax regulations yet.

Full Analysis Report

Financial Regulatory Report: Retail Cryptocurrency Trading Status in Grenada

Report Date: April 12, 2025
Prepared For: Internal Review
Prepared By: Specialized Financial Regulatory Analyst

Topic: Retail_Trading_Status (Grenada)

Description: This section assesses the legal and regulatory environment concerning the ability of individual citizens and residents in Grenada to buy, sell, and hold cryptocurrencies. It details applicable regulations, including those related to Virtual Asset Service Providers (VASPs), KYC/AML requirements, and official guidance or warnings issued.

1. Current Status: Allowed-Regulated

2. Detailed Narrative Explanation:

Grenada permits its citizens and residents to engage in retail cryptocurrency trading (buying, selling, holding). While there is no specific legislation directly prohibiting or explicitly detailing rules for individual ownership and peer-to-peer trading outside regulated intermediaries, the overall environment is considered regulated due to the enactment of the Virtual Asset Business Act, 2021 (VABA).

This Act establishes a comprehensive legal framework for Virtual Asset Service Providers (VASPs) operating in or from Grenada, or offering services to persons in Grenada [2, 3]. This means that businesses facilitating cryptocurrency transactions for retail users, such as exchanges, wallet providers, crypto fund managers, and custody services, are subject to regulation [2].

Key aspects of this regulatory framework include:

Registration and Supervision: VASPs must register with the Grenada Authority for the Regulation of Financial Institutions (GARFIN), which is responsible for overseeing compliance and enforcing the VABA [2]. This includes VASPs operating offshore but providing services to Grenadian residents [2].
AML/CFT Compliance: Registered VASPs are mandated to comply with Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) regulations. This involves implementing customer due diligence (KYC), record-keeping, and reporting suspicious transactions, aligning with international standards set by the Financial Action Task Force (FATF), of which Grenada (via the Caribbean Financial Action Task Force - CFATF) is a member [2, 4, 11].
Consumer Protection and Market Integrity: The VABA aims to ensure VASPs adhere to standards promoting consumer protection and market integrity [2].

It is crucial to note that cryptocurrencies like Bitcoin are not considered legal tender in Grenada [3, 4, 10]. The official currency is the Eastern Caribbean Dollar (XCD). The Eastern Caribbean Central Bank (ECCB), which serves as the monetary authority for Grenada and other ECCU members, has explicitly stated this and has issued advisories urging the public to exercise caution and be mindful of the significant risks associated with cryptocurrency investments and transactions, highlighting their volatility and the lack of investor protection inherent in decentralized systems [4, 8, 10].

The ECCB has also been actively piloting its own Central Bank Digital Currency (CBDC), known as DCash, which is a digital form of the EC dollar and legal tender within participating ECCU countries, including Grenada [2, 3, 10, 17, 19, 20, 21]. DCash is distinct from decentralized cryptocurrencies like Bitcoin.

While individual retail trading is allowed, the regulatory focus on VASPs means that most formal avenues for trading (e.g., using exchanges accessible to Grenadians) fall under a regulated umbrella, necessitating AML/CFT checks and adherence to conduct rules by the service providers. Taxation of crypto activities currently falls under general tax laws (Income Tax Act, VAT Act) as there are no specific crypto tax regulations yet, with crypto generally treated as intangible assets [4, 7].

In summary, individuals in Grenada can trade crypto, but the businesses providing the platforms and services for these activities are subject to registration, supervision, and AML/CFT obligations under the VABA 2021, making the overall status 'Allowed-Regulated'.

3. Relevant Text Excerpts:

On VABA and Regulation of Businesses: "Grenada has implemented regulations for virtual assets and digital currency businesses, with the passage of the Virtual Asset Business Act in July 2021. The Act mandates the registration and supervision of virtual asset businesses operating in Grenada, and requires registrants to comply with Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) regulations and maintain relevant records." [2]
On Regulatory Authority (GARFIN): "The regulatory body that oversees the Virtual Asset Business Act, 2021 is the Grenada Authority for the Regulation of Financial Institutions (GARFIN). GARFIN is responsible for registering and supervising virtual asset businesses, ensuring compliance, and enforcing penalties." [2]
On Scope (Including Offshore VASPs): "Yes, VASPs providing virtual asset services from offshore to persons in Grenada are subject to regulation under the Virtual Asset Business Act, 2021 in Grenada. The Virtual Asset Business Act, 2021 applies to any person who offers or operates virtual asset business in or from Grenada..." [2]
On AML/CFT Requirements: "The Virtual Asset Business Act, 2021 aims to ensure that VASPs adhere to certain standards, including AML/CFT measures, consumer protection, and market integrity requirements." [2] (See also [4])
On Legal Tender Status: "There are currently no specific regulations in Grenada regarding the regulation of cryptocurrencies, especially Bitcoin. However, guidance has been issued there stating that it is not considered legal tender." [3] (See also [4])
ECCB Advisory on Risks: "The Eastern Caribbean Central Bank (ECCB) encourages citizens and residents of the Eastern Caribbean Currency Union to conduct proper research and due diligence checks before investing in cryptocurrencies... Dr Joseph further advises that one should not invest more than one is willing to lose as there is no protection or recourse for retrieving lost investments via the platform." [8]
ECCB Clarification on Legal Tender: "The ECCB reminds the public that the Eastern Caribbean (EC) Dollar, together with its digital form, DCash, remains the sole currency which bears the status of legal tender in the ECCU." [10]
On Individual Activity vs. Business Regulation: "Grenada has no specific laws regulating cryptocurrencies like Bitcoin [for individuals]. The government has clarified that Bitcoin isn't recognized as legal tender... However, The Eastern Caribbean Central Bank (ECCB), the Financial Intelligence Unit (FIU), and the Eastern Caribbean Securities Regulatory Commission (ECSRC) have issued warnings... The primary regulatory authority for virtual asset businesses is the Grenada Authority for the Regulation of Financial Institutions (GARFIN). GARFIN oversees the registration and supervision of these businesses, ensuring they comply with the Virtual Asset Business Act of 2021." [4]

4. Source URLs:

[2] Charltons Quantum - Grenada Virtual Assets Regulation: https://vertexaisearch.cloud.google.com/grounding-api-redirect/AWQVqAKB8uz8_IaBgUASCu0gaqPjA2vPmFAw5bKKpPBquFtj6VhojfYMnfoL_wlSWpA83LIxufZk4tPYY-G-CG6M7AqTzADwnQfGaZWfXPlh1cp1fxSEB-7cZmk5gFUhNDSGxVr8TwDcUKXNXlr4DRt4m_YI2-UoZQ== (Note: This appears to be a secondary source summarizing the regulation, potentially from a legal or consulting firm)
[3] Manimama - Crypto in the Spice Isle: Navigating Grenada's Cryptoregulation Landscape: https://vertexaisearch.cloud.google.com/grounding-api-redirect/AWQVqALfMHNKIXDlAyW4T6RgYAQvLaXaLZicSJZbI-6daIRWGKngkgoJZbwzGICid9TUsTZ_Mr9NHg4MAfwZ41dx1xkRmboZE8cuHHRXPbGSEanP1Gc059yz6O3orcWxlT0x_VNjUj735bZ0FsOGB0GjvBL_5ACgAfEJMN1XbdeAoGhJpgcXRFqsCdpvx7lja7PV6fDf (Blog/Informational site)
[4] UPay Blog - Crypto Adoption Around the World: Grenada: https://vertexaisearch.cloud.google.com/grounding-api-redirect/AWQVqAJpBR0HHqrXc8y38mkHqXKsKz8dih6u1FTuN4bHzEV07vbVoDKKjP1LKBq6M3_ydeM3S0Iu-GegEzblmiCHhoaN1RT5gNqLlJYxBMIAouDouCIR6R892ui2-dEJBvjCMGreekYn (Blog/Informational site, appears well-researched with quotes)
[6] Freeman Law - Grenada and Cryptocurrency: https://vertexaisearch.cloud.google.com/grounding-api-redirect/AWQVqAKPRt1lNho3cIXkxUkgRb0ABdB0UL3cdZFm-zrJjjdEPLU0bfI8DpIWQPxlKiYU93gBKZ5wCwBs3Vsxw493CNFWUC7rrh8kO5ynwPK4m7Zlj-24mUdOok1FDF92ekQSZ_22KOk= (Law firm website)
[7] Heavnn University - Cryptocurrency Taxes in Grenada: https://vertexaisearch.cloud.google.com/grounding-api-redirect/AWQVqAJdya47KDefKOpLVXfOEF2jgnA88kunrXABSyr1dWvLxxITmjaPVbW0LznoJjbeW6b7-Giy7okULy9KCYFAdGRVz598zBadXX_BrdHkurEgEQvemdWn9c93m2mTfpK0m5evRbWrAHeEAxvh9GUs7AO37Bk= (Educational/Informational site)
[8] Eastern Caribbean Central Bank (ECCB) - Cryptocurrencies: Risks and Benefits: https://vertexaisearch.cloud.google.com/grounding-api-redirect/AWQVqAJEexNSoK4TkOswYfayClSXuE66B2DjLuhiVVyJUX70FjHIrPxr-1BE7s02XmP-Y4pFn0osnQE44N2X0A6iajNoOUk0n4QTikjkjkQs8kXAIGl4oHOi35WUxAeUMSFwHZfk_aqhsB8VdP9t85NaZxWnPyLEmA2yHAEVaxEvWMI= (Primary Source - Central Bank)
[9] Carlos Maiz - How to Buy Cryptocurrencies in Grenada: https://vertexaisearch.cloud.google.com/grounding-api-redirect/AWQVqAL5eH1vC4rG_OLcerPZ0N1hPc6VGRxr5fF_hI8U21jQQH358PdsCkHqfkVxmQ-NHVFWr2bYMOEOEr14IWFdaVl3QXDuWtCYRgUlDurv2AaBxOuKBX-lgnsnDGzTDOtx7Vk40jwPHcinz1oFd6J-12ESPR8WG7y-JrwO4A== (Informational guide/Blog)
[10] Eastern Caribbean Central Bank (ECCB) - Advisory: ECCB Advises Public to be Mindful of Risks Associated with Cryptocurrencies: https://vertexaisearch.cloud.google.com/grounding-api-redirect/AWQVqAKuZivdT28dG4YK6sCl-PJZYGQWwKcRgluoSzGeJNQadr5ofJTV_StgenUFYP841edkU1swpiY2du0w8FKgc6kUj1Bx1i83DHoNRKM4ciTPZjpTTGvXlY65Btd3TX2x1Wm0Javg6y4Prq-BFeBo83Gar2myWdWyQ4IoLUQ4lSJiD4YwBqVXDyRacOgsAUMSRPCAZcicBeN7nMOLkvcyv1_VBIo1r0-LR_yuFy6fXrF2 (Primary Source - Central Bank)
[11] Financial Action Task Force (FATF) - Grenada Page: https://vertexaisearch.cloud.google.com/grounding-api-redirect/AWQVqAIT-UAaFkqnYgxnUgF6zbnV9hRcx-ux5y_7Q8vJ9Wr_MQt_2ddXasqDwAMmGe4QzZPGizK_G7qPI78yn0j0nEDZY_qwNoDmo6wGluTXMwDOBAQ_XejAsMahDwihEHMfF5_S8PdaHIIU58StvsWHI_k= (International Standard Setter)
[14] Financial Action Task Force (FATF) - Grenada Mutual Evaluation Report (Summary reference): https://vertexaisearch.cloud.google.com/grounding-api-redirect/AWQVqAJ59zJPoV9rKTYYZS1xL4_-6yFpted2vkr_eN34mwqxivVZG4QJ4JSVtAlDaMUuHQJKyUt8BZAM0EkMaxF5DPK-HaCHVxwm62xRfMB4U2zlsftied8As1PsFmKb0cVHVPHWmBbNKEXixp5gEIgKeGI9Qoj31NODuDIfTelnHmr63DhiO8DfiMBH6GAd1ZZsSz82mYBXtDGITgca4Y8D4HLJbIiHu2A4LlQb1Mdl4WqmBsCOCC0Hnw== (Link points to CFATF report via FATF site)
[16] CEMLA - The ECCB Fintech Project (Presentation on DCash): https://vertexaisearch.cloud.google.com/grounding-api-redirect/AWQVqAID1cdftQToql9MGEujwsdkcVyA-hLovU7j4fvfEqnM_gNrO-EqovdVt0UwiUMo_VCF3RX9Z7QN-HGk9aK8fYZXWnPpILAS3-V39x73H3gbmmrLUX0dG1ZbEr56tY1j9os9WTgPg-wzbcGm_7jajbiCtX5qK6HrbcKrRK_gLo8X9OBq8t2Z3OWRCD0fD2ZjMwUL4lj95_d2 (Presentation reference)
[17] Mondaq (via Chancery Chambers) - The Eastern Caribbean Central Bank (ECCB) launches pilot of digital currency: https://vertexaisearch.cloud.google.com/grounding-api-redirect/AWQVqAK9a8IPYP4b0aHg0BPE_G_-xzweNB5U_oE54-CBEFhCN0Go3rMqoPcFoVsOZGSegCMKs3Bwk6o7_e6ONyrTqtD73uNLCNYfKQqIABgNvwDTIuThRuwmaS53-LgDfEEufbkZyjIU8k1y_6G0PPV1YGihY1PJxAwKjcaSqI4msTQ7x6l42EPLtyqNp8ydTq-eDQE3xgEEta8TPb_0xbph57GWeDc_i-G-do9w2ucYu3P-6a07oA6wow== (Legal news aggregator/Law firm article)
[19] Eastern Caribbean Central Bank (ECCB) - The ECCB’s Digital Currency (DCash) is a Critical Step...: https://vertexaisearch.cloud.google.com/grounding-api-redirect/AWQVqAIuldje9ofJZd5syW5LKnGTrSf7jXq-sDxktm6n3Bpq9gayAo3I4vuXbI-Oe9zfRf4OO7pGnfXHgSEFmB7xsbuV8OeXAi-wOAL7-D5tl3u7t5EzInirR8bxfrSF3yS8R-KB4b87xaY1lAAfv9ZxCzBrRLE5rg89SSCxeRR-3AeJq3_s-YQqfJjFUQWS2ATESZgcbwe26vM9JxUNzLxW6XPLqpSkHLRmjv6D4F3JevNyjsJoB8facmYV5qn3zgVbXBLBVw== (Primary Source - Central Bank)
[20] Eastern Caribbean Central Bank (ECCB) - D-Cash Page: https://vertexaisearch.cloud.google.com/grounding-api-redirect/AWQVqAKebke8SlZuc35tjb4P4P813J6-tgQc4CWxvJ5-l-1iLHyatYJiwxa-4VwdrW5Kg_LQLGnYBteUZXOqq8jha2Ci7bM9kcbr4zGMkm5FWwZ2arOboaQyuwCJoIamLA== (Primary Source - Central Bank)
[21] Bitt Inc. - Eastern Caribbean Digital Currency Expands its Network: https://vertexaisearch.cloud.google.com/grounding-api-redirect/AWQVqAKyAgAKEjUYqOlh8xgfyvtHreN6hrafYz5v5xzCFx4wn-Y6IiKG1K1oytPc4K_wvpyu2zo_sUKMShbotIkYN7PQCygL1stsQGsUNWpuhKdk-PKm4ekwaSvpZhSB84HoWX1IiVWzWy9_34wVNWxoCS__3W7EBjruyOl5GdNJG-uInptmineU (Technology partner for DCash)

## Financial Regulatory Report: Retail Cryptocurrency Trading Status in Grenada

**Report Date:** April 12, 2025
**Prepared For:** Internal Review
**Prepared By:** Specialized Financial Regulatory Analyst

---

**Topic: Retail_Trading_Status (Grenada)**

**Description:** This section assesses the legal and regulatory environment concerning the ability of individual citizens and residents in Grenada to buy, sell, and hold cryptocurrencies. It details applicable regulations, including those related to Virtual Asset Service Providers (VASPs), KYC/AML requirements, and official guidance or warnings issued.

---

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

**2. Detailed Narrative Explanation:**

Grenada permits its citizens and residents to engage in retail cryptocurrency trading (buying, selling, holding). While there is no specific legislation directly prohibiting or explicitly detailing rules for *individual* ownership and peer-to-peer trading outside regulated intermediaries, the overall environment is considered regulated due to the enactment of the **Virtual Asset Business Act, 2021 (VABA)**.

This Act establishes a comprehensive legal framework for **Virtual Asset Service Providers (VASPs)** operating *in or from* Grenada, or offering services *to persons in* Grenada [2, 3]. This means that businesses facilitating cryptocurrency transactions for retail users, such as exchanges, wallet providers, crypto fund managers, and custody services, are subject to regulation [2].

Key aspects of this regulatory framework include:

*   **Registration and Supervision:** VASPs must register with the **Grenada Authority for the Regulation of Financial Institutions (GARFIN)**, which is responsible for overseeing compliance and enforcing the VABA [2]. This includes VASPs operating offshore but providing services to Grenadian residents [2].
*   **AML/CFT Compliance:** Registered VASPs are mandated to comply with Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) regulations. This involves implementing customer due diligence (KYC), record-keeping, and reporting suspicious transactions, aligning with international standards set by the Financial Action Task Force (FATF), of which Grenada (via the Caribbean Financial Action Task Force - CFATF) is a member [2, 4, 11].
*   **Consumer Protection and Market Integrity:** The VABA aims to ensure VASPs adhere to standards promoting consumer protection and market integrity [2].

It is crucial to note that cryptocurrencies like Bitcoin are **not considered legal tender** in Grenada [3, 4, 10]. The official currency is the Eastern Caribbean Dollar (XCD). The Eastern Caribbean Central Bank (ECCB), which serves as the monetary authority for Grenada and other ECCU members, has explicitly stated this and has issued advisories urging the public to exercise caution and be mindful of the significant risks associated with cryptocurrency investments and transactions, highlighting their volatility and the lack of investor protection inherent in decentralized systems [4, 8, 10].

The ECCB has also been actively piloting its own Central Bank Digital Currency (CBDC), known as **DCash**, which *is* a digital form of the EC dollar and legal tender within participating ECCU countries, including Grenada [2, 3, 10, 17, 19, 20, 21]. DCash is distinct from decentralized cryptocurrencies like Bitcoin.

While individual retail trading is allowed, the regulatory focus on VASPs means that most formal avenues for trading (e.g., using exchanges accessible to Grenadians) fall under a regulated umbrella, necessitating AML/CFT checks and adherence to conduct rules by the service providers. Taxation of crypto activities currently falls under general tax laws (Income Tax Act, VAT Act) as there are no specific crypto tax regulations yet, with crypto generally treated as intangible assets [4, 7].

In summary, individuals in Grenada can trade crypto, but the businesses providing the platforms and services for these activities are subject to registration, supervision, and AML/CFT obligations under the VABA 2021, making the overall status 'Allowed-Regulated'.

**3. Relevant Text Excerpts:**

*   **On VABA and Regulation of Businesses:** "Grenada has implemented regulations for virtual assets and digital currency businesses, with the passage of the Virtual Asset Business Act in July 2021. The Act mandates the registration and supervision of virtual asset businesses operating in Grenada, and requires registrants to comply with Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) regulations and maintain relevant records." [2]
*   **On Regulatory Authority (GARFIN):** "The regulatory body that oversees the Virtual Asset Business Act, 2021 is the Grenada Authority for the Regulation of Financial Institutions (GARFIN). GARFIN is responsible for registering and supervising virtual asset businesses, ensuring compliance, and enforcing penalties." [2]
*   **On Scope (Including Offshore VASPs):** "Yes, VASPs providing virtual asset services from offshore to persons in Grenada are subject to regulation under the Virtual Asset Business Act, 2021 in Grenada. The Virtual Asset Business Act, 2021 applies to any person who offers or operates virtual asset business in or from Grenada..." [2]
*   **On AML/CFT Requirements:** "The Virtual Asset Business Act, 2021 aims to ensure that VASPs adhere to certain standards, including AML/CFT measures, consumer protection, and market integrity requirements." [2] (See also [4])
*   **On Legal Tender Status:** "There are currently no specific regulations in Grenada regarding the regulation of cryptocurrencies, especially Bitcoin. However, guidance has been issued there stating that it is not considered legal tender." [3] (See also [4])
*   **ECCB Advisory on Risks:** "The Eastern Caribbean Central Bank (ECCB) encourages citizens and residents of the Eastern Caribbean Currency Union to conduct proper research and due diligence checks before investing in cryptocurrencies... Dr Joseph further advises that one should not invest more than one is willing to lose as there is no protection or recourse for retrieving lost investments via the platform." [8]
*   **ECCB Clarification on Legal Tender:** "The ECCB reminds the public that the Eastern Caribbean (EC) Dollar, together with its digital form, DCash, remains the sole currency which bears the status of legal tender in the ECCU." [10]
*   **On Individual Activity vs. Business Regulation:** "Grenada has no specific laws regulating cryptocurrencies like Bitcoin [for individuals]. The government has clarified that Bitcoin isn't recognized as legal tender... However, The Eastern Caribbean Central Bank (ECCB), the Financial Intelligence Unit (FIU), and the Eastern Caribbean Securities Regulatory Commission (ECSRC) have issued warnings... The primary regulatory authority for virtual asset businesses is the Grenada Authority for the Regulation of Financial Institutions (GARFIN). GARFIN oversees the registration and supervision of these businesses, ensuring they comply with the Virtual Asset Business Act of 2021." [4]

**4. Source URLs:**

*   [2] Charltons Quantum - Grenada Virtual Assets Regulation: `https://vertexaisearch.cloud.google.com/grounding-api-redirect/AWQVqAKB8uz8_IaBgUASCu0gaqPjA2vPmFAw5bKKpPBquFtj6VhojfYMnfoL_wlSWpA83LIxufZk4tPYY-G-CG6M7AqTzADwnQfGaZWfXPlh1cp1fxSEB-7cZmk5gFUhNDSGxVr8TwDcUKXNXlr4DRt4m_YI2-UoZQ==` (Note: This appears to be a secondary source summarizing the regulation, potentially from a legal or consulting firm)
*   [3] Manimama - Crypto in the Spice Isle: Navigating Grenada's Cryptoregulation Landscape: `https://vertexaisearch.cloud.google.com/grounding-api-redirect/AWQVqALfMHNKIXDlAyW4T6RgYAQvLaXaLZicSJZbI-6daIRWGKngkgoJZbwzGICid9TUsTZ_Mr9NHg4MAfwZ41dx1xkRmboZE8cuHHRXPbGSEanP1Gc059yz6O3orcWxlT0x_VNjUj735bZ0FsOGB0GjvBL_5ACgAfEJMN1XbdeAoGhJpgcXRFqsCdpvx7lja7PV6fDf` (Blog/Informational site)
*   [4] UPay Blog - Crypto Adoption Around the World: Grenada: `https://vertexaisearch.cloud.google.com/grounding-api-redirect/AWQVqAJpBR0HHqrXc8y38mkHqXKsKz8dih6u1FTuN4bHzEV07vbVoDKKjP1LKBq6M3_ydeM3S0Iu-GegEzblmiCHhoaN1RT5gNqLlJYxBMIAouDouCIR6R892ui2-dEJBvjCMGreekYn` (Blog/Informational site, appears well-researched with quotes)
*   [6] Freeman Law - Grenada and Cryptocurrency: `https://vertexaisearch.cloud.google.com/grounding-api-redirect/AWQVqAKPRt1lNho3cIXkxUkgRb0ABdB0UL3cdZFm-zrJjjdEPLU0bfI8DpIWQPxlKiYU93gBKZ5wCwBs3Vsxw493CNFWUC7rrh8kO5ynwPK4m7Zlj-24mUdOok1FDF92ekQSZ_22KOk=` (Law firm website)
*   [7] Heavnn University - Cryptocurrency Taxes in Grenada: `https://vertexaisearch.cloud.google.com/grounding-api-redirect/AWQVqAJdya47KDefKOpLVXfOEF2jgnA88kunrXABSyr1dWvLxxITmjaPVbW0LznoJjbeW6b7-Giy7okULy9KCYFAdGRVz598zBadXX_BrdHkurEgEQvemdWn9c93m2mTfpK0m5evRbWrAHeEAxvh9GUs7AO37Bk=` (Educational/Informational site)
*   [8] Eastern Caribbean Central Bank (ECCB) - Cryptocurrencies: Risks and Benefits: `https://vertexaisearch.cloud.google.com/grounding-api-redirect/AWQVqAJEexNSoK4TkOswYfayClSXuE66B2DjLuhiVVyJUX70FjHIrPxr-1BE7s02XmP-Y4pFn0osnQE44N2X0A6iajNoOUk0n4QTikjkjkQs8kXAIGl4oHOi35WUxAeUMSFwHZfk_aqhsB8VdP9t85NaZxWnPyLEmA2yHAEVaxEvWMI=` (Primary Source - Central Bank)
*   [9] Carlos Maiz - How to Buy Cryptocurrencies in Grenada: `https://vertexaisearch.cloud.google.com/grounding-api-redirect/AWQVqAL5eH1vC4rG_OLcerPZ0N1hPc6VGRxr5fF_hI8U21jQQH358PdsCkHqfkVxmQ-NHVFWr2bYMOEOEr14IWFdaVl3QXDuWtCYRgUlDurv2AaBxOuKBX-lgnsnDGzTDOtx7Vk40jwPHcinz1oFd6J-12ESPR8WG7y-JrwO4A==` (Informational guide/Blog)
*   [10] Eastern Caribbean Central Bank (ECCB) - Advisory: ECCB Advises Public to be Mindful of Risks Associated with Cryptocurrencies: `https://vertexaisearch.cloud.google.com/grounding-api-redirect/AWQVqAKuZivdT28dG4YK6sCl-PJZYGQWwKcRgluoSzGeJNQadr5ofJTV_StgenUFYP841edkU1swpiY2du0w8FKgc6kUj1Bx1i83DHoNRKM4ciTPZjpTTGvXlY65Btd3TX2x1Wm0Javg6y4Prq-BFeBo83Gar2myWdWyQ4IoLUQ4lSJiD4YwBqVXDyRacOgsAUMSRPCAZcicBeN7nMOLkvcyv1_VBIo1r0-LR_yuFy6fXrF2` (Primary Source - Central Bank)
*   [11] Financial Action Task Force (FATF) - Grenada Page: `https://vertexaisearch.cloud.google.com/grounding-api-redirect/AWQVqAIT-UAaFkqnYgxnUgF6zbnV9hRcx-ux5y_7Q8vJ9Wr_MQt_2ddXasqDwAMmGe4QzZPGizK_G7qPI78yn0j0nEDZY_qwNoDmo6wGluTXMwDOBAQ_XejAsMahDwihEHMfF5_S8PdaHIIU58StvsWHI_k=` (International Standard Setter)
*   [14] Financial Action Task Force (FATF) - Grenada Mutual Evaluation Report (Summary reference): `https://vertexaisearch.cloud.google.com/grounding-api-redirect/AWQVqAJ59zJPoV9rKTYYZS1xL4_-6yFpted2vkr_eN34mwqxivVZG4QJ4JSVtAlDaMUuHQJKyUt8BZAM0EkMaxF5DPK-HaCHVxwm62xRfMB4U2zlsftied8As1PsFmKb0cVHVPHWmBbNKEXixp5gEIgKeGI9Qoj31NODuDIfTelnHmr63DhiO8DfiMBH6GAd1ZZsSz82mYBXtDGITgca4Y8D4HLJbIiHu2A4LlQb1Mdl4WqmBsCOCC0Hnw==` (Link points to CFATF report via FATF site)
*   [16] CEMLA - The ECCB Fintech Project (Presentation on DCash): `https://vertexaisearch.cloud.google.com/grounding-api-redirect/AWQVqAID1cdftQToql9MGEujwsdkcVyA-hLovU7j4fvfEqnM_gNrO-EqovdVt0UwiUMo_VCF3RX9Z7QN-HGk9aK8fYZXWnPpILAS3-V39x73H3gbmmrLUX0dG1ZbEr56tY1j9os9WTgPg-wzbcGm_7jajbiCtX5qK6HrbcKrRK_gLo8X9OBq8t2Z3OWRCD0fD2ZjMwUL4lj95_d2` (Presentation reference)
*   [17] Mondaq (via Chancery Chambers) - The Eastern Caribbean Central Bank (ECCB) launches pilot of digital currency: `https://vertexaisearch.cloud.google.com/grounding-api-redirect/AWQVqAK9a8IPYP4b0aHg0BPE_G_-xzweNB5U_oE54-CBEFhCN0Go3rMqoPcFoVsOZGSegCMKs3Bwk6o7_e6ONyrTqtD73uNLCNYfKQqIABgNvwDTIuThRuwmaS53-LgDfEEufbkZyjIU8k1y_6G0PPV1YGihY1PJxAwKjcaSqI4msTQ7x6l42EPLtyqNp8ydTq-eDQE3xgEEta8TPb_0xbph57GWeDc_i-G-do9w2ucYu3P-6a07oA6wow==` (Legal news aggregator/Law firm article)
*   [19] Eastern Caribbean Central Bank (ECCB) - The ECCB’s Digital Currency (DCash) is a Critical Step...: `https://vertexaisearch.cloud.google.com/grounding-api-redirect/AWQVqAIuldje9ofJZd5syW5LKnGTrSf7jXq-sDxktm6n3Bpq9gayAo3I4vuXbI-Oe9zfRf4OO7pGnfXHgSEFmB7xsbuV8OeXAi-wOAL7-D5tl3u7t5EzInirR8bxfrSF3yS8R-KB4b87xaY1lAAfv9ZxCzBrRLE5rg89SSCxeRR-3AeJq3_s-YQqfJjFUQWS2ATESZgcbwe26vM9JxUNzLxW6XPLqpSkHLRmjv6D4F3JevNyjsJoB8facmYV5qn3zgVbXBLBVw==` (Primary Source - Central Bank)
*   [20] Eastern Caribbean Central Bank (ECCB) - D-Cash Page: `https://vertexaisearch.cloud.google.com/grounding-api-redirect/AWQVqAKebke8SlZuc35tjb4P4P813J6-tgQc4CWxvJ5-l-1iLHyatYJiwxa-4VwdrW5Kg_LQLGnYBteUZXOqq8jha2Ci7bM9kcbr4zGMkm5FWwZ2arOboaQyuwCJoIamLA==` (Primary Source - Central Bank)
*   [21] Bitt Inc. - Eastern Caribbean Digital Currency Expands its Network: `https://vertexaisearch.cloud.google.com/grounding-api-redirect/AWQVqAKyAgAKEjUYqOlh8xgfyvtHreN6hrafYz5v5xzCFx4wn-Y6IiKG1K1oytPc4K_wvpyu2zo_sUKMShbotIkYN7PQCygL1stsQGsUNWpuhKdk-PKm4ekwaSvpZhSB84HoWX1IiVWzWy9_34wVNWxoCS__3W7EBjruyOl5GdNJG-uInptmineU` (Technology partner for DCash)

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