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Bonaire, Sint Eustatius and Saba

Retail_Trading_Status

Allowed-Regulated Unknown
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Analysis ID
#150
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Archived
Created
2025-04-12 06:52
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Live

Executive Summary

Retail cryptocurrency trading is permitted but regulated in Bonaire, Sint Eustatius, and Saba (BES Islands) under the Dutch financial regulatory framework. De Nederlandsche Bank (DNB) and the Autoriteit Financiële Markten (AFM) oversee crypto-asset service providers (CASPs), implementing EU's Fifth Anti-Money Laundering Directive (AMLD5) via the Wet ter voorkoming van witwassen en financiering van terrorisme (Wwft) and transitioning to Markets in Crypto-Assets Regulation (MiCAR). CASPs must now obtain licenses from AFM after December 30, 2024, to ensure AML/CFT compliance, consumer protection, and market integrity.

Key Pillars

The primary regulators are De Nederlandsche Bank (DNB) and the Autoriteit Financiële Markten (AFM). Core compliance requirements include AML/CFT compliance under the Wet ter voorkoming van witwassen en financiering van terrorisme (Wwft) and the Sanctions Act, with the transition to Markets in Crypto-Assets Regulation (MiCAR) requiring licensing by the AFM. CASPs operating in or from the Netherlands, including the BES Islands, must comply with Know Your Customer (KYC) and Anti-Money Laundering (AML) procedures.

Landmark Laws

  • Wet ter voorkoming van witwassen en financiering van terrorisme (Wwft): Dutch Anti-Money Laundering and Terrorism Financing (Prevention) Act implemented AMLD5 in May 2020, requiring crypto service providers to register with DNB for AML/CFT supervision.
  • Markets in Crypto-Assets Regulation (MiCAR): EU regulation introducing a comprehensive licensing regime for CASPs. New CASPs must obtain a license from the AFM since December 30, 2024. CASPs registered with DNB before this date have a transitional period until June 30, 2025, to obtain an AFM license.

Considerations

Crypto assets are subject to warnings from both DNB and AFM, highlighting volatility, potential for fraud, and use in illicit activities. The AFM emphasizes marketing communications by CASPs must be fair, clear, not misleading, and include appropriate risk warnings such as "investing in this crypto-asset involves risks; you could lose your investment." Individuals can trade through platforms that comply with KYC and AML procedures.

Notes

DNB conducted examinations on the BES islands between July 2022 and December 2023, focusing on money laundering risks and sanctions compliance. Trading platforms like Alpaca, Transak, and SpectroCoin explicitly list Bonaire, Sint Eustatius, and Saba as supported jurisdictions, indicating practical accessibility for retail users. Significant fines have been issued to major exchanges like Binance and Coinbase for operating without registration, highlighting DNB's enforcement of AML/CFT regulations.

Detailed Explanation

Retail trading of cryptocurrencies is allowed in Bonaire, Sint Eustatius, and Saba (BES Islands), but is regulated. The BES Islands, as special municipalities of the Netherlands, fall under the Dutch financial regulatory framework overseen by De Nederlandsche Bank (DNB) and the Autoriteit Financiële Markten (AFM). Initially, following the implementation of the EU's Fifth Anti-Money Laundering Directive (AMLD5) into Dutch law (Wet ter voorkoming van witwassen en financiering van terrorisme - Wwft) in May 2020, crypto-asset service providers (CASPs), formerly known as virtual asset service providers (VASPs), operating in or from the Netherlands (including the BES Islands) were required to register with DNB. This registration primarily focused on AML/CFT compliance and the Sanctions Act, with DNB actively enforcing these requirements, issuing fines to exchanges like Binance and Coinbase for non-compliance. The regulatory landscape is transitioning to the EU's Markets in Crypto-Assets Regulation (MiCAR). Since December 30, 2024, new CASPs must obtain a license from the AFM to operate legally. CASPs registered with DNB before December 30, 2024, can operate under a transitional arrangement until June 30, 2025 (or July 1, 2025, according to some sources), after which they require an AFM license. The AFM's licensing assessment includes aspects beyond AML/CFT, such as governance, consumer protection, market abuse, and operational resilience. Individuals can trade cryptocurrencies through platforms compliant with these regulations, which include KYC and AML procedures. Trading platforms like Alpaca, Transak and SpectroCoin list Bonaire, Sint Eustatius, and Saba as supported jurisdictions. Both DNB and AFM have issued warnings about the risks of crypto-assets, including volatility and potential for fraud. The AFM scrutinizes CASP marketing to ensure it's fair, clear, and includes risk warnings, like “investing in this crypto-asset involves risks; you could lose your investment.” Between July 2022 and December 2023, DNB conducted examinations on the BES islands focusing on money laundering risks and sanctions compliance.

Summary Points

Retail Cryptocurrency Trading Status in Bonaire, Sint Eustatius and Saba (BES Islands)

1. Overall Regulatory Status:

  • Allowed-Regulated: Retail trading of cryptocurrencies is permitted but subject to regulation.

2. Key Regulatory Bodies and Roles:

  • De Nederlandsche Bank (DNB):
    • Historically responsible for AML/CFT supervision of crypto-asset service providers (CASPs) through registration.
    • Conducted integrity supervision on the BES islands, focusing on money laundering risks and sanctions compliance.
    • Previously fined exchanges (e.g., Binance) for operating without registration.
  • Autoriteit Financiële Markten (AFM):
    • Primary licensing authority for CASPs under MiCAR.
    • Responsible for assessing CASPs on governance, consumer protection, market abuse, and operational resilience.
    • Scrutinizes marketing communications by CASPs to ensure they are fair, clear, and include risk warnings.

3. Important Legislation and Regulations:

  • Dutch Law (Wet ter voorkoming van witwassen en financiering van terrorisme - Wwft):
    • Implemented the EU's Fifth Anti-Money Laundering Directive (AMLD5).
    • Required CASPs operating in or from the Netherlands (including the BES Islands) to register with DNB for AML/CFT supervision.
  • Markets in Crypto-Assets Regulation (MiCAR):
    • EU regulation introducing a comprehensive licensing regime for CASPs.
    • Requires CASPs to obtain a license from the AFM to operate legally.

4. Requirements for Compliance:

  • Registration/Licensing:
    • CASPs must be registered with DNB (historically) or licensed by the AFM (currently, under MiCAR).
  • AML/CFT Compliance:
    • CASPs must implement Know Your Customer (KYC) and Anti-Money Laundering (AML) procedures.
  • Consumer Protection:
    • CASPs must adhere to consumer protection regulations, including fair and clear marketing communications with risk warnings.
  • Governance and Operational Resilience:
    • CASPs must meet standards for governance and operational resilience.

5. Notable Restrictions or Limitations:

  • Platform Compliance: Individuals must trade through platforms that comply with Dutch and EU regulations.
  • Risk Warnings: CASPs must provide clear risk warnings to users regarding the volatility and potential for loss associated with crypto-assets.

6. Recent Developments or Changes:

  • Transition to MiCAR:
    • New CASPs must obtain an AFM license since December 30, 2024.
    • CASPs registered with DNB before December 30, 2024, can operate under a transitional arrangement until June 30, 2025 (or July 1, 2025).
    • After the transitional period, all CASPs must possess an AFM license.
  • Shift in Supervisory Focus:
    • The AFM is now the primary licensing authority, expanding the scope of supervision beyond AML/CFT to include consumer protection and market integrity.

Full Analysis Report

Financial Regulatory Report: Retail Cryptocurrency Trading Status in Bonaire, Sint Eustatius and Saba (BES Islands)

Topic: Retail_Trading_Status
Description: Assess whether individual citizens and residents in Bonaire, Sint Eustatius and Saba 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:

Retail trading of cryptocurrencies (buying, selling, holding by individual citizens and residents) is currently allowed in Bonaire, Sint Eustatius, and Saba (collectively known as the BES Islands or the Caribbean Netherlands). However, the environment is regulated, primarily through the supervision of crypto-asset service providers (CASPs), formerly referred to as virtual asset service providers (VASPs).

As special municipalities of the Netherlands, the BES Islands fall under the Dutch financial regulatory framework, overseen by De Nederlandsche Bank (DNB) and the Autoriteit Financiële Markten (AFM).

  • Regulatory Framework (Pre-MiCAR): Since May 2020, following the implementation of the EU's Fifth Anti-Money Laundering Directive (AMLD5) into Dutch law (Wet ter voorkoming van witwassen en financiering van terrorisme - Wwft), companies providing services for exchanging between virtual and fiat currencies, or offering custodian wallets, and operating in or from the Netherlands (including the BES Islands) were required to register with DNB. This registration focused specifically on compliance with AML/CFT (Anti-Money Laundering and Counter-Financing of Terrorism) requirements and the Sanctions Act. DNB has actively enforced this, issuing significant fines to major exchanges like Binance and Coinbase for operating without registration. This framework did not ban retail participation but aimed to mitigate illicit finance risks associated with crypto service providers.
  • Transition to MiCAR: The European Union's Markets in Crypto-Assets Regulation (MiCAR) has introduced a comprehensive licensing regime for CASPs across the EU, including the Netherlands and consequently the BES Islands.
    • Since December 30, 2024, new CASPs must obtain a license from the AFM to operate legally.
    • CASPs that were registered with DNB before December 30, 2024, can continue operating under a transitional arrangement until June 30, 2025 (or July 1, 2025, based on some sources). After this date, they must possess an AFM license to continue providing services.
    • The AFM is now the primary licensing authority, assessing aspects beyond AML/CFT, including governance, consumer protection, market abuse, and operational resilience.
  • Retail User Implications: While individuals are permitted to trade cryptocurrencies, they must do so through platforms that comply with the applicable regulations. This means platforms serving residents of the BES Islands are subject to registration/licensing and must implement Know Your Customer (KYC) and AML procedures. Several international trading platforms explicitly list Bonaire, Sint Eustatius, and Saba as supported jurisdictions, indicating practical accessibility for retail users.
  • Official Warnings: Both DNB and AFM have issued warnings regarding the high risks associated with crypto-assets, including volatility, potential for fraud, and use in illicit activities. The AFM specifically scrutinizes marketing communications by CASPs to ensure they are fair, clear, not misleading, and include appropriate risk warnings.

In summary, individuals in the BES Islands can legally engage with cryptocurrencies, but the service providers they use are subject to increasingly stringent Dutch and EU regulations focused on AML/CFT, consumer protection, and market integrity under the supervision of DNB and AFM.

3. Specific Excerpts and Summaries from Sources:

  • Regulation of Service Providers: "Anyone who is active in the provision of financial products in the Caribbean Netherlands must be recorded in the register of the AFM or of DNB." This establishes the supervisory oversight in the region. (Source: AFM)
  • AMLD5 Implementation & DNB Registration: Based on the Dutch Anti-Money Laundering and Terrorism Financing (Prevention) Act (Wwft), which implemented AMLD5 in May 2020, crypto service providers active "in or from the Netherlands" (which includes the BES Islands) offering exchange services (virtual-fiat) or custodian wallets must register with DNB for AML/CFT supervision. Non-compliance has led to significant fines. (Summary based on: ICLG.com, VIXIO Regulatory Intelligence)
  • Transition to MiCAR and AFM Licensing: "Since 30 December 2024, new European rules apply to crypto companies. You can no longer register your crypto company with De Nederlandsche Bank (DNB). Do you currently have a registration with DNB? If so, it remains valid until 30 June 2025. After this, you must have a licence from the AFM." This highlights the shift from DNB registration to a full AFM licensing requirement under MiCAR. (Source: Business.gov.nl) The AFM confirms its role: "The crypto register lists all crypto-asset service providers (CASPs) that have obtained an authorisation or notification from the AFM or the supervision authority of another EU Member State." (Source: AFM)
  • Supervision in BES Islands: DNB explicitly states its role includes integrity supervision of "crypto service providers...and financial institutions on the BES islands," monitoring compliance with relevant legislation like the Wwft and Sanctions Act. DNB conducted examinations on the BES islands focusing on money laundering risks and sanctions compliance between July 2022 and December 2023. (Source: De Nederlandsche Bank - Integrity Supervision in Focus 2024-2025)
  • Retail Access: Trading platform Alpaca lists "Bonaire, Sint Eustatius and Saba" among the international jurisdictions where cryptocurrency trading is open to its customers (as of April 10, 2025). Other platforms like Transak and SpectroCoin also market services for buying crypto in the BES Islands. (Source: Alpaca, Transak, SpectroCoin)
  • Regulatory Warnings: The AFM emphasizes that under MiCAR, advertisements from CASPs "must be fair, clear, and not misleading" and include clear risk warnings, such as "investing in this crypto-asset involves risks; you could lose your investment." (Source: AKD Law Firm Blog summarizing AFM findings)

4. Source URLs:

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