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Saint Helena, Ascension and Tristan da Cunha

Retail_Trading_Status

Gray-Zone Unknown
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Status Changed

Previous status: Unclear

The change in status from "Unclear" in the Previous Analysis (PA) to "Gray-Zone" in the New Analysis (NA) reflects a more nuanced understanding of the retail cryptocurrency trading environment in Saint Helena, Ascension and Tristan da Cunha (SHATdC), supported by additional and more recent information. Justification for Differences: 1. Refinement of Status Terminology: "Unclear" (PA) suggests a significant lack of information or clarity, potentially implying that it's unknown if trading is even occurring or what the general stance might be. "Gray-Zone" (NA) is a more precise term. It acknowledges that while there isn't an explicit legal framework formally permitting or prohibiting retail crypto trading, the activity is likely happening, albeit in an unregulated and unsupervised manner. It implies that trading exists in a space not covered by specific laws, rather than the legality itself being completely unknown. Both analyses agree on the absence of specific legislation, but "Gray-Zone" better captures the reality of activity occurring in this vacuum. 2. Incorporation of More Recent Governmental Signals: The NA incorporates more recent or specific indicators of the government's thinking that were not as prominent or available in the PA. * Budget Speech 2022: The NA specifically cites the "St Helena Government - BUDGET SPEECH 2022," which mentions exploring legal frameworks for DAOs and NFTs. While the PA mentioned the "Sustainable Economic Development Strategy 2023–2033" which also noted gaps and exploration of DAOs, the Budget Speech reference in NA is more direct about exploring "legal certainty for otherwise unclassified crypto-assets." This signals a more concrete, albeit still exploratory, engagement with aspects of the digital asset space. * Legal Nodes Consultation (January 2024): The NA includes a new source: "Legal Nodes - Legal Nodes Gives Consultations to St Helena Government on a DAO Project (January 26, 2024)." This is a significant addition as it indicates very recent, active consultation between the St Helena Government and external experts on innovative digital economy projects, including DAOs. This demonstrates a proactive, albeit initial, step by the government to understand and potentially engage with the digital asset ecosystem, moving beyond just issuing warnings. This active exploration supports the "Gray-Zone" status more strongly than "Unclear," as it shows the government is aware and investigating, rather than the situation being entirely undefined. 3. Emphasis on Ongoing Activity and Government Awareness: Both reports note the practical availability of trading through international platforms and the issuance of warnings by the FSRA and Bank of St Helena. The NA, however, frames this within the "Gray-Zone" context, implying that authorities are aware of the activity (hence the warnings and exploratory work) but have not yet established a formal regulatory regime. The PA's "Unclear" status could be interpreted as uncertainty about the government's awareness or stance, whereas the NA, with its newer sources, suggests a clearer picture of awareness coupled with ongoing, albeit slow, consideration of the broader digital finance landscape. 4. Slightly Different Source Focus: While many sources overlap (FSRA warnings, Bank of St Helena warnings, Company Registry Policy), the NA introduces the Budget Speech 2022 and the Legal Nodes consultation as key pieces of evidence. The PA mentioned the "Sustainable Economic Development Strategy 2023–2033," which is more recent than the 2022 Budget Speech, but the Budget Speech and Legal Nodes consultation provide more specific insight into the government's direct engagement with digital asset concepts. The NA also provides more direct links to some government documents. In summary, the shift from "Unclear" to "Gray-Zone" is justified by a more refined interpretation of the existing lack of specific regulation, bolstered by newer evidence (especially the Legal Nodes consultation and the specific mention of the 2022 Budget Speech) indicating that the government is not entirely passive or the situation entirely undefined. Instead, there's an awareness of crypto activities and an early-stage exploration of related digital finance areas, even if retail trading itself remains unregulated. This creates a "Gray-Zone" where individuals can likely trade at their own risk, without explicit prohibition but also without local regulatory safeguards or endorsement, a situation the government is beginning to acknowledge and explore more actively. The core facts about the lack of direct regulation remain, but the understanding of the government's engagement and the nature of the regulatory ambiguity has evolved.

Analysis ID
#478
Version
Latest
Created
2025-06-26 13:12
Workflow Stage
Live

Executive Summary

As of June 2025, cryptocurrency in Saint Helena, Ascension and Tristan da Cunha operates within a "Gray-Zone" regulatory environment. While there are no explicit laws banning cryptocurrency activities, there is a distinct absence of clear and comprehensive rules or regulations specifically governing retail crypto trading. This means that individuals engaging in crypto transactions do so at their own risk, without the formal protections or defined legal frameworks that would typically be provided by a dedicated regulatory regime. The territory's government is actively working on modernizing its broader financial services framework, which may eventually extend to digital assets, but as of the specified date, specific crypto legislation remains un-enacted.

Key Pillars

  • The current regulatory landscape for retail crypto trading in Saint Helena, Ascension and Tristan da Cunha is characterized by the lack of specific regulatory pillars for digital assets. Instead, crypto activities exist in an unregulated space where general financial principles and existing legislation might implicitly apply, but without explicit guidance. This results in: * Absence of Specific Crypto Legislation: There are no dedicated laws or ordinances tailored to the unique nature of cryptocurrencies, their trading, or associated services. * Implied Legality: The absence of a ban means cryptocurrency is "allowed," but without formal recognition or oversight, its status is ambiguous. * Reliance on General Financial Frameworks: Traditional financial regulations, such as those related to anti-money laundering (AML) and combating the financing of terrorism (CFT), may be broadly expected to apply, but their specific application to crypto remains largely undefined in local law. The Financial Services Regulatory Authority (FSRA) is responsible for licensing and regulating financial services businesses in the territory, established by the Financial Services Ordinance 2008. While the FSRA aims to maintain confidence in the financial system and reduce financial crime, its explicit purview over cryptocurrency is not detailed in current public information.

Landmark Laws

Financial Services Ordinance 2008
- Authority: Financial Services Regulatory Authority (FSRA)
- Date: 2008
- Summary: This ordinance established the Financial Services Regulatory Authority (FSRA) and provides the primary legal framework for traditional financial services in the territory. It does not specifically address cryptocurrencies or digital assets.

Financial Services Regulations 2017
- Authority: Financial Services Regulatory Authority (FSRA)
- Date: 2017
- Summary: These regulations supplement the Financial Services Ordinance 2008, detailing rules for financial services businesses. They focus on traditional financial services and do not explicitly mention cryptocurrencies or digital assets.

Considerations

  • Asset Classification: As there is no specific crypto legislation, there is no formal classification of cryptocurrencies (e.g., as securities, commodities, or currencies) within Saint Helena, Ascension and Tristan da Cunha. This lack of classification contributes to the "gray-zone" status, leaving ambiguities regarding legal treatment and regulatory oversight.

  • Taxation: The taxation of cryptocurrencies in Saint Helena, Ascension and Tristan da Cunha is not explicitly defined. While there are general income tax laws that apply to "income from property" and "capital gains," it is unclear how these specifically apply to profits derived from crypto trading or other crypto-related activities. Generally, the territory's income tax legislation outlines rates for individuals and companies, including capital gains. However, specific guidance on crypto is absent. Global discussions indicate that policymakers worldwide are struggling to accommodate cryptocurrencies within existing tax systems.

  • Consumer Protection: Given the absence of specific crypto regulations, consumers engaging in retail crypto trading lack dedicated regulatory protections. Transactions are undertaken at the individual's own risk, with limited recourse in case of fraud, theft, or exchange failures. The FSRA's general objective to "secure an appropriate degree of protection for consumers and depositors" is in the context of regulated financial services businesses, which, as of June 2025, do not explicitly include crypto exchanges or service providers.

  • Anti-Money Laundering (AML) / Counter-Financing of Terrorism (CFT): While the territory has general provisions against money laundering, the specific application of AML/CFT frameworks to cryptocurrency activities is not clearly articulated in local law. International standards, such as those from the Financial Action Task Force (FATF), recommend regulating Virtual Asset Service Providers (VASPs), but local implementation specifically for crypto remains underdeveloped.

Notes

  • The Saint Helena Government is aware of the need to modernize its financial services regulatory framework. On January 21, 2025, the Executive Council approved the Financial Services Regulation Policy 2025. This policy aims to modernize selected parts of the financial services regulatory framework, driven by the Sustainable Economic Development Strategy (SEDS) 2023-2033. The SEDS explicitly states that "St Helena's financial services laws and regulations require reform and modernisation in order to encourage competition within the sector and support economic growth," and notes "substantial gaps in current legislation". The policy's objectives include enhancing the attractiveness of Saint Helena for business, strengthening consumer protection, reinforcing governance standards, and improving the effectiveness of the regulatory framework. A consultation paper on "Measures to Modernise Financial Services Regulation in St Helena" was issued in April 2024 to licensed firms and stakeholders. While these initiatives signal a move towards a more robust and modern financial regulatory environment, they do not specifically address or enact regulations for retail crypto trading as of June 2025. The focus appears to be on general financial services and attracting new firms, with a target of March 2026 for a full review of the Financial Services Ordinance. It is plausible that future legislative developments stemming from this policy may eventually encompass digital assets and crypto activities, but this is not yet concrete. Separately, a new Communications Bill was approved by the Legislative Council on June 18, 2025, aiming for digital modernization, though it directly addresses telecommunications rather than financial digital assets.

Detailed Explanation

Saint Helena, Ascension and Tristan da Cunha, a British Overseas Territory in the South Atlantic, currently maintains a "Gray-Zone" stance on retail cryptocurrency trading as of June 2025. This classification stems from a fundamental characteristic of its legal and regulatory environment concerning digital assets: the conspicuous absence of explicit prohibitory laws coupled with a significant lack of clear and comprehensive regulatory frameworks. While cryptocurrency is not outright banned, its operation occurs in an undefined legal space, leaving market participants exposed to inherent risks without the safety nets of formal oversight. The core of this "Gray-Zone" status is that no specific laws have been enacted to govern, regulate, or even formally acknowledge retail crypto trading. This means that activities such as buying, selling, or exchanging cryptocurrencies by individuals are permitted by default, simply because there is no legislation prohibiting them. However, this permissive environment comes without the accompanying clarity on consumer protection, asset classification, or specific tax obligations that would typically be found in jurisdictions with developed crypto regulations. Consequently, individuals engaging in these activities bear the full brunt of any risks, including volatility, cyber-attacks, fraud, or the insolvency of unregulated platforms, as there are no established legal avenues for recourse directly related to crypto. The territory's broader financial services sector is overseen by the Financial Services Regulatory Authority (FSRA), which was established by the Financial Services Ordinance 2008. The FSRA's mandate includes maintaining confidence in the financial system, promoting public understanding, protecting consumers and depositors, and combating financial crime. However, the existing ordinances and regulations it enforces, such as the Financial Services Ordinance 2008 and the Financial Services Regulations 2017, do not specifically mention or provide a framework for digital assets like cryptocurrencies. This leaves a regulatory void where crypto is concerned, despite the FSRA's general objectives. Further illustrating the nascent stage of digital asset regulation, discussions within the Saint Helena Government indicate an awareness of the need for financial sector modernization. The approval of the Financial Services Regulation Policy 2025 by the Executive Council in January 2025 signifies a strategic intent to update and reform the existing financial services laws. This policy directly acknowledges "substantial gaps in current legislation" within the financial services landscape and aims to enhance the territory's attractiveness for business, strengthen consumer protection, and improve regulatory effectiveness. While this initiative is forward-looking and may eventually lead to the inclusion of digital assets within a regulated framework, as of June 2025, these remain proposals and policy objectives rather than enacted legislation specifically for crypto. The Sustainable Economic Development Strategy 2023-2033 (SEDS) sets a target of March 2026 for a full review of the Financial Services Ordinance, indicating that any concrete crypto-specific laws are still in the developmental pipeline. Regarding critical considerations like asset classification and taxation, the absence of dedicated crypto laws means there are no formal definitions for how cryptocurrencies are legally categorized. This creates ambiguity regarding their treatment under existing laws, such as those pertaining to property or financial instruments. Similarly, while the territory has income tax laws that cover "income from property" and "capital gains," there is no specific guidance on how these apply to cryptocurrency profits, leaving interpretation to individuals and tax authorities without clear legislative backing. This unstructured approach highlights the "Gray-Zone" status, where the activity exists, but without the precise legal definitions and obligations that would come with a clear regulatory framework.

Summary Points

Here's a clear, well-structured bullet point summary of the retail crypto trading regulations in Saint Helena, Ascension and Tristan da Cunha:

## Retail Crypto Trading Regulations in Saint Helena, Ascension and Tristan da Cunha (as of June 2025)

### 1. Regulatory Status

  • Gray-Zone Environment: Cryptocurrency operates in a "Gray-Zone," meaning:
  • No explicit laws ban cryptocurrency activities.
  • A distinct absence of clear, comprehensive rules or regulations specifically governing retail crypto trading.
  • Individuals engage in crypto transactions at their own risk, without formal protections or defined legal frameworks.
  • Implied Legality: Crypto is "allowed" due to the absence of a ban, but lacks formal recognition or oversight.

### 2. Key Regulatory Bodies

  • Financial Services Regulatory Authority (FSRA):
  • Established by the Financial Services Ordinance 2008.
  • Responsible for licensing and regulating traditional financial services businesses.
  • Aims to maintain confidence in the financial system, promote public understanding, protect consumers, and reduce financial crime.
  • Limited Crypto Purview: Its explicit authority over cryptocurrency is not detailed in current public information or legislation.

### 3. Important Legislation and Regulations

  • Absence of Specific Crypto Legislation: As of June 2025, there are no dedicated laws or ordinances tailored to cryptocurrencies, their trading, or associated services.
  • Existing Financial Framework:
  • Financial Services Ordinance 2008 (FSO): Primary legislation for traditional financial services.
  • Financial Services Regulations 2017 (FSR): Supplements the FSO, focusing on traditional financial services.
  • These legislations do not specifically address cryptocurrencies or digital assets.
  • Legal System Basis: Rooted in English common law, supplemented by local statutes and ordinances. Each of the three territories (St Helena, Ascension, Tristan da Cunha) has its own separate legal system, sharing common high-level judicial and governmental roles.

### 4. Requirements for Compliance

  • Undefined Compliance: Due to the lack of specific crypto legislation, there are no explicit compliance requirements for retail crypto trading.
  • Implicit Application of General Principles:
  • General financial principles and existing legislation (e.g., Anti-Money Laundering/Combating the Financing of Terrorism - AML/CFT) might implicitly apply.
  • However, their specific application to crypto remains largely undefined in local law.

### 5. Notable Restrictions or Limitations

  • Asset Classification:
  • No formal classification of cryptocurrencies (e.g., as securities, commodities, or currencies).
  • This lack of classification contributes to the "gray-zone" status and ambiguities regarding legal treatment.
  • Taxation:
  • Taxation of cryptocurrencies is not explicitly defined.
  • Unclear how general income tax laws (e.g., "income from property," "capital gains") specifically apply to profits from crypto trading.
  • Consumer Protection:
  • Consumers lack dedicated regulatory protections for crypto trading.
  • Transactions are undertaken at the individual's own risk, with limited recourse in case of fraud, theft, or exchange failures.
  • The FSRA's consumer protection objectives apply to regulated financial services, which do not explicitly include crypto exchanges.
  • AML/CFT Application:
  • While general provisions against money laundering exist, their specific application to cryptocurrency activities is not clearly articulated in local law.
  • Local implementation of international standards (e.g., FATF recommendations for Virtual Asset Service Providers - VASPs) remains underdeveloped.

### 6. Recent Developments or Changes

  • Financial Services Regulation Policy 2025:
  • Approved by the Executive Council on January 21, 2025.
  • Aims to modernize selected parts of the broader financial services regulatory framework.
  • Driven by the Sustainable Economic Development Strategy (SEDS) 2023-2033, which notes "substantial gaps in current legislation."
  • Objectives include enhancing attractiveness for business, strengthening consumer protection, and improving regulatory effectiveness.
  • A consultation paper was issued in April 2024.
  • Future Outlook:
  • These initiatives signal a move towards a more robust financial regulatory environment.
  • However, they do not specifically address or enact regulations for retail crypto trading as of June 2025.
  • A full review of the Financial Services Ordinance is targeted for March 2026, making it plausible that future legislative developments may eventually encompass digital assets, but this is not yet concrete.
  • Communications Bill (June 2025): A new bill approved for digital modernization, but directly addresses telecommunications, not financial digital assets.

Full Analysis Report

Report on Retail Cryptocurrency Trading Status in Saint Helena, Ascension and Tristan da Cunha

Date of Report: 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).

Retail_Trading_Status

Identified Status: Gray-Zone

Detailed Narrative Explanation:

The legal status of retail cryptocurrency trading in the British Overseas Territory of Saint Helena, Ascension and Tristan da Cunha is best described as a "Gray-Zone." While there is no outright ban on individuals buying, selling, or holding cryptocurrencies, there is also no specific regulatory framework governing these activities. This creates a situation with some ambiguity and potential risks for consumers.

The Financial Services Regulatory Authority (FSRA) of St Helena, Ascension and Tristan da Cunha has not issued specific licenses for cryptocurrency exchanges or detailed regulations for crypto-asset service providers. However, the FSRA is aware of the growing interest and potential risks associated with cryptocurrencies. They have issued warnings to consumers regarding online investment scams, with a particular emphasis on those involving cryptocurrencies. This indicates a cautious approach from the regulatory body, acknowledging the existence of crypto trading without formally endorsing or regulating it.

The St Helena Government, in its 2022 Budget Speech, indicated an exploratory stance towards digital finance, including Decentralised Autonomous Organisations (DAOs) and certain crypto-assets like Non-Fungible Tokens (NFTs). This suggests a potential future development of a legal framework but underscores the current lack of specific regulations for general retail cryptocurrency trading. Furthermore, a Company Registry Policy document for St Helena Government mentions "Involvement in initial coin offerings or crypto exchanges or providing other services relating to cryptocurrencies" as an area that will affect the operation of the Company Registry and send a message about St Helena's appetite for financial services business, implying a level of scrutiny or concern.

The Bank of St Helena has also issued warnings about cryptocurrency scams, highlighting the risks involved for individuals. While these warnings do not prohibit trading, they emphasize the unregulated nature of the space and the potential for financial loss.

Some international cryptocurrency exchanges and service providers may list Saint Helena, Ascension and Tristan da Cunha as jurisdictions where their services are available. However, this availability does not necessarily imply that the activity is formally regulated or endorsed by the local authorities. These platforms often operate under the laws of their own registration and may or may not have specific safeguards or consumer protection measures aligned with St Helena's financial regulations.

The legal system in Saint Helena, Ascension and Tristan da Cunha is based on English common law and local statutes. In the absence of specific local legislation for cryptocurrencies, the general legal principles would apply. However, the novel nature of crypto-assets means that their treatment under existing laws may not always be clear.

Overall, individuals in Saint Helena, Ascension and Tristan da Cunha can likely engage in retail cryptocurrency trading at their own risk. There are no explicit prohibitions, but the lack of a dedicated regulatory framework means there are no specific investor protections, KYC/AML requirements tailored for crypto platforms, or official licensing regimes for such activities within the territory. This places the onus of due diligence squarely on the individual trader. The government and financial authorities have signaled awareness and concern, particularly regarding scams, and are exploring the broader digital finance landscape, which may lead to clearer regulations in the future.

Specific, Relevant Text Excerpts:

  • Financial Services Regulatory Authority (FSRA) - Scams and warnings: "The advent of high speed internet connectivity brings with it increased risks that consumers will be the target of online investment scams. Where we become aware of scams specifically targeting consumers on the islands, we will include an alert on our website. In the meantime, we urge consumers to pay particular attention to potential scams involving cryptocurrencies."
  • St Helena Government - COMPANY REGISTRY POLICY: "While matters considered by this policy will only affect the operation of the Company Registry department... the decisions taken by St Helena Government with regard to its Company Registry policy will obviously send out a message to the wider world with regards to St Helena's appetite for financial services business... There are also international aspects... • Involvement in initial coin offerings or crypto exchanges or providing other services relating to cryptocurrencies."
  • St Helena Government - BUDGET SPEECH 2022: "While we recognise that St Helena does not have a competitive advantage in the more mainstream digital finance sectors, there are opportunities in the niche, underserved, and growing markets. Two such areas we are exploring are Developing a legal framework that recognises... Decentralised Autonomous Organisations (DAOs) and providing legal certainty for otherwise unclassified crypto-assets, such as Non Fungible Tokens or NFTs that are issued through smart contracts running on the block chain or as some now refer to as WEB 3 Infrastructure."
  • Bank of St Helena - Investment Scams (Cryptocurrency Scams): "Cryptocurrencies are digital currencies and cryptocurrency investment scammers are convincing. Bitcoin is the most well-known form of digital currency. Scammers may advertise or post on social media offering great returns from cryptocurrency trading. If you click on the advertisement or post, the scammer will contact you or you will be directed to a fake website."
  • Legal Nodes - Legal Nodes Gives Consultations to St Helena Government on a DAO Project (January 26, 2024): "Legal Nodes was selected by the St Helena Government to provide consultancy for an innovative project in the DAO industry. Nestor and Max spent last week in consultations, meeting with the island's officials to explore opportunities for the island in the digital/programmable economy and the innovative programmable entity (DAO) that is a crucial part of such an economy." This indicates ongoing exploration of digital assets by the government.

Direct, Accessible URL Links to Specific Sources:

Web Sources (10)

Sources discovered via web search grounding

Search queries used (10)
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  • Tristan da Cunha cryptocurrency laws
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  • financial conduct authority Saint Helena cryptocurrency
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  • Tristan da Cunha official stance on cryptocurrency
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