Anguilla

**Report on the Current Status of Retail Cryptocurrency Trading in Anguilla**

**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. Identified Status**

Allowed-Regulated

**2. Detailed Narrative Explanation**

Retail cryptocurrency trading by individual citizens and residents in Anguilla is legally permitted and is subject to a developing regulatory framework. Anguilla has taken a proactive approach to digital assets, particularly with a focus on utility tokens. While the regulations are more explicitly defined for issuers and exchanges of utility tokens, the general environment indicates that individuals can participate in cryptocurrency activities. Platforms facilitating these activities are expected to adhere to Know Your Customer (KYC) and Anti-Money Laundering (AML) requirements.

Historically, Anguilla has positioned itself as a jurisdiction open to financial innovation. This is evidenced by the enactment of specific legislation aimed at the digital asset space. The **Anguilla Utility Token Offering (AUTO) Act of 2018** was a significant step, establishing a framework for the issuance of utility tokens. This act was later complemented by the **Anguilla Utility Tokens Exchange Act 2020**, which provides for the licensing and regulation of utility token exchanges operating in or from within Anguilla. These pieces of legislation indicate a clear intent to regulate, rather than ban, cryptocurrency-related activities.

The Anguilla Financial Services Commission (AFSC) is the primary regulatory body overseeing financial services, including those related to digital assets. While much of the explicit regulation focuses on issuers and exchanges, the existence of a licensing regime for exchanges implies that individuals can use these platforms for trading. These licensed entities are expected to comply with AML/CFT (Combating the Financing of Terrorism) obligations, which inherently include KYC procedures for their customers.

In 2022, the AFSC issued a consultation paper for a new Securities and Investment Funds Act (SIFA) Bill, which included provisions for regulating Digital Payment Token Services. This bill noted that only approved professional funds could be established to invest in cryptocurrencies or carry on digital payment token services, with a distinction made for public (retail) funds, suggesting a developing framework that could further clarify retail participation. More recently, the "Digital Assets Business Act, 2023" was introduced, further defining "digital asset" to include cryptocurrencies and digital payment tokens, and outlining a registration and licensing regime for digital asset business service providers, which would include exchanges accessible to retail users.

While there isn't specific legislation that explicitly details the rights and obligations of individual retail crypto traders in the same way it details regulations for issuers or exchanges, the overall legal and regulatory direction supports the conclusion that retail trading is permitted within a regulated environment. The emphasis on AML/KYC for service providers directly impacts retail users, as they will need to comply with these identity verification measures to access regulated platforms.

The Anguilla Financial Intelligence Unit (FIU) has also issued advisories regarding scams involving cryptocurrencies, urging caution and due diligence, which further implies that legitimate cryptocurrency investment and trading are activities that residents might engage in.

There is no indication of an outright ban on individuals buying, selling, or holding cryptocurrencies. Instead, the focus has been on creating a regulatory environment for service providers to ensure market integrity and prevent illicit activities. The tax implications for individuals are currently not explicitly defined in legislation, with cryptocurrencies likely to be treated as intangible assets, though capital gains tax in Anguilla is 0%.

**3. Specific, Relevant Text Excerpts**

*   **Webster LP (May 05, 2023):** "Anguilla, in a rather progressive move decided to go ahead of their counterparts by enacting the Auto Utility Token Offering [AUTO] Act 2018 and the Anguilla Utility Token Exchange Act 2020 becoming one of very few Caribbean countries to enact regulatory guidelines within the cryptocurrency domain."
*   **Webster LP (May 05, 2023):** "Once registration takes place the Utility Tokens Exchange Act 2020 requires an issuer to obtain a license from the AFSC to operate a utility token exchange in or from within Anguilla."
*   **Anguilla Financial Services Commission (June 13, 2022):** "In addition, the bill outlines the framework for regulated Digital Payment Token Services. Of note, only approved professional funds can be established to invest in cryptocurrencies, digital payment tokens or other digital assets or carrying on any other digital payment token service in or from within Anguilla." (This was part of a consultation and indicates evolving regulation that distinguishes between professional and potentially retail funds).
*   **Freeman Law:** "The Anguillan government enacted the Anguilla Utility Token Offering Act of 2018. The Act establishes the Distributed Ledger Advisory Committee and prohibits any person from undertaking an initial utility token offering or a secondary utility token offering in or from within Anguilla unless registered as an issuer specifically for the purpose of conducting the offering under the Act."
*   **Cointelegraph (referring to legal crypto exchanges in Anguilla):** "Legal crypto exchanges in Anguilla must follow regulations such as Know Your Customer (KYC) and Anti-Money Laundering (AML) protocols. These measures help protect both users and the platform from illegal activities."
*   **Kelman.Law (August 17, 2020):** "The AUTO Act aims to effect a clear regulatory framework by which utility token issuers can be registered and supervised by the Anguilla Financial Services Commission (AFSC). This will help establish a strong structuring of the offering and ensure that potential subscribers are adequately informed and protected."
*   **Kelman.Law (August 17, 2020):** "The Anguilla Utility Tokens Exchange Act complements the AUTO Act and brings Anguilla in line with 2019's “Travel Rule” regulations implemented by the FATF and FinCEN to combat money laundering (ML) and terrorism funding (TF) channeled through virtual asset service providers (VASPs)."
*   **Government of Anguilla (Digital Assets Business Act, 2023 - Bill):** Defines “digital asset” as "cryptocurrencies, digital payment tokens and anything that exists in binary format as a medium of exchange, store of value or unit of account but does not include a digital representation of fiat currency." This act also outlines requirements for registration and licensing of persons conducting digital asset business.
*   **Anguilla Financial Intelligence Unit (September 15, 2020 - Advisory on Investment Fraud):** "Avoid investments that require you to pay by Bitcoin or use Cryptocurrency without proper due diligence." This implies that using cryptocurrency for investment is possible if due diligence is conducted.

**4. Direct, Accessible URL Links**

*   **Webster LP - Digital currency and the Anguillian law (May 05, 2023):** [https://websterlawbwi.com/news-insights/digital-currency-and-the-anguillian-law/](https://websterlawbwi.com/news-insights/digital-currency-and-the-anguillian-law/)
*   **Anguilla Financial Services Commission - Consultation Paper on SIFA Bill (June 13, 2022):** While the direct link to the consultation paper itself might change, the AFSC website is the primary source: [https://www.afsc.ai/](https://www.afsc.ai/) (The specific document was titled: "The Anguilla Financial Services Commission (“AFSC”) has issued the Securities and Investment Funds (“SIFA”) Bill for the second consultation period and the SIFA Regulations for the first consultation period.")
*   **Freeman Law - Anguilla and Cryptocurrency:** [https://freemanlaw.com/anguilla-cryptocurrency-laws/](https://freemanlaw.com/anguilla-cryptocurrency-laws/)
*   **Cointelegraph - Best Crypto Exchanges in Anguilla:** [https://cointelegraph.com/learn/best-crypto-exchanges-in-anguilla](https://cointelegraph.com/learn/best-crypto-exchanges-in-anguilla)
*   **Anguilla Utility Tokens Exchange Act (Revised Statutes of Anguilla):** A direct link to the legislation might be found via the AFSC or Government of Anguilla websites. The search result provided a non-direct link to a PDF viewer. A primary source link would be: [https://www.fsc.ai/document-category/legislation/](https://www.fsc.ai/document-category/legislation/) (navigating to the relevant Act).
*   **Kelman.Law - Anguilla: A Crypto Regulation Haven for Utility Tokens (August 17, 2020):** [https://kelman.law/insights/anguilla-a-crypto-regulation-haven-for-utility-tokens/](https://kelman.law/insights/anguilla-a-crypto-regulation-haven-for-utility-tokens/)
*   **Heavnn University - Cryptocurrency Taxes in Anguilla (April 05, 2024):** [https://heavnn.university/cryptocurrency-taxes-in-anguilla/](https://heavnn.university/cryptocurrency-taxes-in-anguilla/)
*   **Anguilla Financial Intelligence Unit - Advisories:** [https://www.fiu.ai/advisories.php](https://www.fiu.ai/advisories.php)
*   **Government of Anguilla - Digital Assets Business Act, 2023 (Bill):** [https://www.gov.ai/bills/Digital%20Assets%20Business%20Act,%202023.pdf](https://www.gov.ai/bills/Digital%20Assets%20Business%20Act,%202023.pdf)
*   **Legalico - Blockchain, ICOs, and regulation: The Anguilla Approach (February 18, 2019):** [https://legalico.io/blockchain-icos-and-regulation-the-anguilla-approach/](https://legalico.io/blockchain-icos-and-regulation-the-anguilla-approach/)