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Grenada

Retail_Trading_Status

Allowed-Regulated Unknown
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#429
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Created
2025-06-26 13:06
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Executive Summary

Retail cryptocurrency trading is legally permitted in Grenada and is now regulated under the Virtual Asset Business Act of 2021 (VABA). The Grenada Authority for the Regulation of Financial Institutions (GARFIN) oversees virtual asset businesses, ensuring compliance with AML/CFT regulations. Cryptocurrencies are not legal tender; the Eastern Caribbean Dollar remains the sole legal tender.

Key Pillars

  • Primary regulator: The Grenada Authority for the Regulation of Financial Institutions (GARFIN) oversees the registration and supervision of virtual asset businesses, ensuring compliance with the Virtual Asset Business Act (VABA) of 2021.
  • Core compliance requirements: VASPs must adhere to Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) regulations, including KYC/CDD, record-keeping, ongoing monitoring, and reporting suspicious transactions.
  • Licensing/Registration: Businesses offering virtual asset services within or from Grenada are subject to a specific licensing and regulatory regime under the VABA.

Landmark Laws

  • Virtual Asset Business Act, 2021 (VABA): Establishes a legal framework for virtual asset businesses operating in or from Grenada, defines terms, sets licensing and registration requirements, and addresses AML/CFT.

Considerations

  • Cryptocurrencies are not recognized as legal tender in Grenada; the Eastern Caribbean Dollar (XCD) remains the sole legal tender.
  • The Eastern Caribbean Central Bank (ECCB) has issued advisories urging the public to exercise caution when dealing with cryptocurrencies due to their volatility and associated risks.
  • The VABA defines "virtual asset" as a digital representation of value that can be digitally traded or transferred and used for payment or investment purposes, excluding digital representations of fiat currency or securities.

Notes

  • The Eastern Caribbean Central Bank (ECCB) is actively exploring blockchain technology through its digital currency initiative, DCash, a digital version of the EC Dollar, distinct from decentralized cryptocurrencies.
  • Grenada's regulatory approach aims to align with international standards, such as those set by the Financial Action Task Force (FATF).
  • Grenadian citizens can generally access international cryptocurrency exchanges, subject to those platforms' own KYC/AML procedures.

Detailed Explanation

Retail cryptocurrency trading is legally permitted for individuals in Grenada. The regulatory environment has evolved with the enactment of the Virtual Asset Business Act, 2021 (VABA), which establishes a legal framework for virtual asset businesses operating in or from Grenada. The Grenada Authority for the Regulation of Financial Institutions (GARFIN) is the primary regulatory body, responsible for the registration and supervision of virtual asset businesses and ensuring compliance with the VABA, including enforcing penalties for non-compliance. GARFIN's role is also to ensure compliance with Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) regulations, mandating customer due diligence (KYC), record-keeping, ongoing monitoring, and reporting suspicious transactions. The VABA defines 'virtual asset' as a digital representation of value that can be digitally traded or transferred and used for payment or investment purposes, excluding digital representations of fiat currency or securities. It covers exchange between virtual assets and fiat currencies, exchange between different virtual assets, transfer of virtual assets, and the safekeeping or administration of virtual assets. While individuals are permitted to engage with cryptocurrencies, they are not recognized as legal tender; the Eastern Caribbean Dollar (XCD) remains the sole legal tender. The Eastern Caribbean Central Bank (ECCB), the monetary authority for Grenada and other ECCU member states, has issued advisories urging caution when dealing with cryptocurrencies due to their volatility and associated risks. It is also exploring blockchain technology through its own digital currency initiative, DCash, a digital version of the EC Dollar. Grenada's regulatory approach aims to align with international standards set by the Financial Action Task Force (FATF). The country is not on any FATF 'grey list' or 'blacklist' for AML deficiencies, allowing Grenadian citizens access to international cryptocurrency exchanges, subject to those platforms' KYC/AML procedures. As Charltons Quantum states, the Virtual Asset Business Act of 2021 establishes a legal framework including defining terms, licensing and registration requirements, and addressing AML/CFT. Businesses offering virtual asset services within or from Grenada are subject to a specific licensing and regulatory regime under the VABA, with a strong emphasis on AML/CFT compliance. The UPay Blog quotes Larry Lawrence, President, Grenada Bankers Association as previously noting the absence of a finalized regulatory framework, which predates the VABA 2021.

Summary Points

Retail Trading of Cryptocurrencies in Grenada: Regulatory Overview

1. Regulatory Status:

  • Allowed-Regulated: Retail cryptocurrency trading (buying, selling, and holding) is legally permitted for individuals.
  • Not Legal Tender: Cryptocurrencies are not legal tender. The Eastern Caribbean Dollar (XCD) is the sole legal tender.

2. Key Regulatory Bodies:

  • Grenada Authority for the Regulation of Financial Institutions (GARFIN):
    • Primary regulatory body overseeing the Virtual Asset Business Act (VABA).
    • Responsible for registration and supervision of Virtual Asset Service Providers (VASPs).
    • Ensures compliance with the VABA and enforces penalties for non-compliance.
  • Eastern Caribbean Central Bank (ECCB):
    • Monetary authority for Grenada and other ECCU member states.
    • Issues advisories urging caution when dealing with cryptocurrencies due to volatility and risks.
    • Exploring blockchain technology through its own digital currency initiative, DCash (a digital version of the EC Dollar, distinct from decentralized cryptocurrencies).

3. Key Legislation and Regulations:

  • Virtual Asset Business Act, 2021 (VABA):
    • Establishes a legal framework for virtual asset businesses operating in or from Grenada.
    • Defines "virtual asset" as a digital representation of value that can be digitally traded or transferred and used for payment or investment purposes (excluding digital representations of fiat currency or securities).
    • Covers activities including:
      • Exchange between virtual assets and fiat currencies.
      • Exchange between different virtual assets.
      • Transfer of virtual assets.
      • Safekeeping or administration of virtual assets.

4. Requirements for Compliance (for VASPs):

  • Licensing and Registration: Businesses offering virtual asset services within or from Grenada require specific licensing and registration under the VABA.
  • Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) Regulations:
    • Mandatory adherence to AML/CFT regulations.
    • Implementation of Customer Due Diligence (KYC).
    • Record-keeping.
    • Ongoing monitoring.
    • Reporting suspicious transactions.

5. Notable Restrictions or Limitations:

  • Cryptocurrencies are not legal tender.
  • ECCB warnings: The ECCB advises the public to be mindful of the risks associated with cryptocurrencies.
  • VASP Regulation: Businesses offering virtual asset services are subject to specific licensing and regulatory requirements.

6. Recent Developments or Changes:

  • Enactment of the Virtual Asset Business Act, 2021 (VABA): This is the key recent development, moving Grenada from a position of no specific legislation to a regulated environment.
  • ECCB's DCash Initiative: The ECCB is actively exploring blockchain technology through its own digital currency initiative, DCash.
  • Alignment with International Standards: Grenada's regulatory approach aims to align with international standards, such as those set by the Financial Action Task Force (FATF).
  • No FATF Listing: Grenada is not on any FATF "grey list" or "blacklist" for AML deficiencies.

Full Analysis Report

Report on the Current Status of Retail Trading of Cryptocurrencies in Grenada

Date: 2025-06-26

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:

Retail cryptocurrency trading, including buying, selling, and holding, is legally permitted for individual citizens and residents in Grenada. The country has moved from a position of no specific legislation to a regulated environment with the enactment of the Virtual Asset Business Act, 2021 (VABA). This Act establishes a legal framework for virtual asset businesses operating in or from Grenada.

The Grenada Authority for the Regulation of Financial Institutions (GARFIN) is the primary regulatory body responsible for overseeing the VABA. GARFIN's role includes the registration and supervision of virtual asset businesses, ensuring their compliance with the Act, and enforcing penalties for non-compliance. The VABA mandates that virtual asset service providers (VASPs) adhere to Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) regulations. This includes implementing customer due diligence (KYC), record-keeping, ongoing monitoring, and reporting suspicious transactions.

While individuals are permitted to engage with cryptocurrencies, it's important to note that cryptocurrencies like Bitcoin are not recognized as legal tender in Grenada; the Eastern Caribbean Dollar (XCD) remains the sole legal tender. The Eastern Caribbean Central Bank (ECCB), which serves as the monetary authority for Grenada and other Eastern Caribbean Currency Union (ECCU) member states, has issued advisories urging the public to exercise caution when dealing with cryptocurrencies due to their volatility and associated risks. The ECCB has also been actively exploring blockchain technology through its own digital currency initiative, DCash, which is a digital version of the EC Dollar and distinct from decentralized cryptocurrencies.

The VABA defines "virtual asset" as a digital representation of value that can be digitally traded or transferred and used for payment or investment purposes, excluding digital representations of fiat currency or securities. The Act covers a broad range of activities, including exchange between virtual assets and fiat currencies, exchange between different virtual assets, transfer of virtual assets, and the safekeeping or administration of virtual assets.

Grenada's regulatory approach aims to align with international standards, such as those set by the Financial Action Task Force (FATF). The country is not on any FATF "grey list" or "blacklist" for AML deficiencies. This regulatory clarity and compliance focus means that Grenadian citizens can generally access international cryptocurrency exchanges, subject to those platforms' own KYC/AML procedures.

In summary, while individual Grenadians can legally trade and hold cryptocurrencies, businesses offering virtual asset services within or from Grenada are subject to a specific licensing and regulatory regime under the VABA, with a strong emphasis on AML/CFT compliance.

3. Specific, Relevant Text Excerpts:

  • Charltons Quantum (referencing the Virtual Asset Business Act, 2021): "The turning point was the introduction of the Virtual Asset Business Act, 2021, establishing a legal framework for virtual asset businesses. It defines terms, sets licensing and registration requirements, and addresses anti-money laundering and counter-terrorism financing. The regulatory body that oversees the Virtual Asset Business Act, 2021 is the Grenada Authority for the Regulation of Financial Institutions (GARFIN)."
  • Charltons Quantum (on AML/CFT): "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."
  • CitizenX (on legality for individuals): "The legal status is clear: cryptocurrency trading and holding are entirely legal in Grenada. There's no ban on owning or using digital assets, though they aren't legal tender (the Eastern Caribbean Dollar remains the official currency)."
  • CitizenX (on regulatory framework): "In 2021, the country passed the Virtual Asset Business Act, creating a comprehensive framework for crypto-related businesses operating in or from Grenada. This legislation was part of a broader Eastern Caribbean Currency Union initiative to standardize regulation across member states."
  • UPay Blog (quoting Larry Lawrence, President, Grenada Bankers Association, though noting the subsequent VABA): “As it relates to the use of cryptocurrencies, there is currently no finalized regulatory framework in either the Eastern Caribbean Currency Union (ECCU) or many other global countries to govern this area.” (Note: This statement predates or does not fully account for the VABA 2021, but highlights earlier sentiments. The same article later clarifies the role of VABA and GARFIN).
  • UPay Blog (on GARFIN and VABA): "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. This Act outlines the legal framework for virtual asset operations in Grenada, including adherence to anti-money laundering (AML) and counter-terrorism financing (CFT) regulations."
  • Eastern Caribbean Central Bank (Advisory): "The Eastern Caribbean Central Bank (ECCB) is aware of the recent increase in the activities of Bitcoin Cash in the Eastern Caribbean Currency Union (ECCU) and 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."

4. Direct, Accessible URL Links to Specific Sources:

  • Charltons Quantum: Grenada Virtual Assets Regulation - https://www.charltonsqc.com/grenada-virtual-assets-regulation/
  • UPay Blog: Crypto Adoption Around the World: Grenada - https://upay.co.uk/blog/crypto-adoption-around-the-world-grenada
  • CitizenX: Guide to KYC on Bybit with a Grenada Passport in 2025 - https://citizenx.com/bybit-kyc-grenada-passport/
  • CitizenX: Is a Grenada Passport good for Binance or other Crypto Exchanges? - https://citizenx.com/grenada-passport-binance-crypto-exchanges/
  • CitizenX: Guide to KYC on Coinbase with a Grenada Passport in 2025 - https://citizenx.com/coinbase-kyc-grenada-passport/
  • CitizenX: Guide to KYC on Binance with a Grenada Passport in 2025 - https://citizenx.com/binance-kyc-grenada-passport/
  • Global Government Fintech: Eastern Caribbean nations roll out blockchain-based DCash - https://www.globalgovernmentfintech.com/eastern-caribbean-nations-roll-out-blockchain-based-digital-currency-dcash/
  • Eastern Caribbean Central Bank: ADVISORY: ECCB Advises Public to be Mindful of Risks Associated with Cryptocurrencies - https://www.eccb-centralbank.org/news/view/advisory-eccb-advises-public-to-be-mindful-of-risks-associated-with-cryptocurrencies (Note: While the specific advisory might be from an earlier date, the ECCB's stance on caution remains relevant as per other search results). A more general page on cryptocurrencies from ECCB is also available:
  • Eastern Caribbean Central Bank: Cryptocurrencies: Risks and Benefits - https://www.eccb-centralbank.org/p/press-release-cryptocurrencies-risks-and-benefits
  • Manimama: Crypto in the Spice Isle: Navigating Grenada's Cryptoregulation Landscape - https://manimama.world/en/blog-en/crypto-in-the-spice-isle-navigating-grenadas-cryptoregulation-landscape/
  • GARFIN (hosting ECCB content): Cryptocurrencies: Risks and Benefits - https://garfin.gd/cryptocurrencies-risks-and-benefits/

Web Sources (11)

Sources discovered via web search grounding

Search queries used (5)
  • Grenada cryptocurrency regulation status 2025
  • Eastern Caribbean Central Bank cryptocurrency policy Grenada
  • Grenada financial services authority cryptocurrency
  • Retail crypto trading laws Grenada
  • AML/KYC cryptocurrency Grenada 2025
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