Bonaire, Sint Eustatius and Saba

## Report on Retail Cryptocurrency Trading Status in Bonaire, Sint Eustatius, and Saba

**Date:** 2025-06-26

**Topic:** Retail_Trading_Status

**Description:** Assess whether individual citizens and residents in Bonaire, Sint Eustatius, and Saba (the BES Islands) 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).
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### Retail_Trading_Status

**Identified Status:** Allowed-Regulated

**Detailed Narrative Explanation:**

Retail trading of cryptocurrencies (buying, selling, and holding) by individual citizens and residents in Bonaire, Sint Eustatius, and Saba (collectively known as the Caribbean Netherlands or BES Islands) is legally permitted but subject to specific regulations, primarily concerning Anti-Money Laundering (AML) and Counter-Terrorist Financing (CFT). The regulatory framework in the BES Islands is closely aligned with that of the European Netherlands, including the implementation of EU AML Directives.

The key legislative instrument governing AML/CFT in the BES Islands is the Act on the Prevention of Money Laundering and Terrorist Financing BES (Wet ter voorkoming van witwassen en financieren van terrorisme BES - Wwft BES). This act has been updated to incorporate requirements for providers of services for the exchange between virtual and fiduciary currencies, as well as custodian wallet providers, aligning with the EU's Fifth Anti-Money Laundering Directive (AMLD5).

De Nederlandsche Bank (DNB), the central bank of the Netherlands, is responsible for the prudential supervision of financial institutions and the integrity supervision (AML/CFT) of a range of entities, including those offering crypto services, in both the European Netherlands and the Caribbean Netherlands. Crypto service providers operating in or targeting the BES Islands must register with DNB and comply with the Wwft BES. This includes implementing Know Your Customer (KYC) procedures, monitoring transactions, and reporting suspicious activities.

While there isn't a specific licensing regime for cryptocurrency trading platforms beyond the AML/CFT registration, the act of trading itself is not prohibited for individuals. However, authorities, including DNB and the Dutch Authority for the Financial Markets (AFM), have issued warnings about the risks associated with cryptocurrencies, such as volatility, an lack of investor protection, and the potential for use in illicit activities. These warnings apply to consumers in the entire Kingdom of the Netherlands, including the BES Islands.

The AFM, which is responsible for conduct supervision in the financial markets, also plays a role in consumer protection and has cautioned investors about the risks of crypto assets. While the Wwft BES and DNB's oversight provide a regulatory framework for service providers, individuals engaging in crypto trading do so at their own risk, with limited specific investor protection mechanisms tailored to crypto assets beyond the general consumer protection laws and the AML/CFT framework aimed at ensuring the integrity of the financial system.

The implementation of AMLD5, and subsequently AMLD6, into Dutch law, including its application to the BES Islands, means that firms offering crypto exchange services or custodian wallets must:
1.  Register with De Nederlandsche Bank (DNB).
2.  Conduct customer due diligence (CDD/KYC).
3.  Monitor transactions.
4.  Report unusual transactions to the Financial Intelligence Unit (FIU).

Therefore, while individuals are free to trade, the environment is regulated, particularly concerning the service providers they might use.

**Specific, Relevant Text Excerpts and URL Links:**

1.  **De Nederlandsche Bank (DNB) - Supervision in the Caribbean Netherlands:**
    *   **Excerpt/Summary:** DNB is responsible for supervising financial institutions in the Caribbean Netherlands (Bonaire, St Eustatius, and Saba). This includes integrity supervision (combating money laundering and terrorist financing) for various types of institutions, including those that may deal with crypto assets under the Wwft BES.
    *   **Source:** De Nederlandsche Bank (DNB) website.
    *   **URL:** [https://www.dnb.nl/en/about-dnb/caribbean-netherlands/](https://www.dnb.nl/en/about-dnb/caribbean-netherlands/) (Note: This link provides general information about DNB's role in the Caribbean Netherlands. Specific crypto-related documents often fall under the broader AML/CFT framework.)

2.  **Wet ter voorkoming van witwassen en financieren van terrorisme BES (Wwft BES):**
    *   **Excerpt/Summary:** The Wwft BES outlines the obligations for institutions to prevent money laundering and terrorist financing. Amendments to this law have incorporated providers of services for exchanging virtual currencies and fiat currencies, and custodian wallet providers, in line with EU AML directives. These entities are required to register with DNB and implement AML/CFT measures. For example, Article 1a, paragraph 1, sub a, under 16° and 17° of the Wwft (Netherlands) which has similar applicability or equivalent provisions in the Wwft BES, defines custodian wallet providers and crypto-to-fiat exchange providers as institutions subject to the act.
    *   **Source:** Official Dutch government legislation websites (e.g., wetten.overheid.nl - searching for "Wwft BES").
    *   **URL:** [https://wetten.overheid.nl/BWBR0028063/2023-07-01](https://wetten.overheid.nl/BWBR0028063/2023-07-01) (This links to the Wwft BES. Specific articles regarding crypto service providers would be found within the text, often reflecting amendments based on EU directives.)

3.  **DNB Q&A on Crypto Service Provider Registration:**
    *   **Excerpt/Summary:** While this Q&A primarily addresses the European Netherlands, the underlying legislation (Wwft) and DNB's supervisory role have parallels or direct extensions to the Caribbean Netherlands. DNB states: "Since 21 May 2020, providers of services for the exchange between virtual and fiat currencies and custodian wallet providers must be registered with De Nederlandsche Bank (DNB) to be allowed to operate in or from the Netherlands. This registration requirement stems from the Fifth European Anti-Money Laundering Directive (AMLD5), which has been implemented in the Prevention of Money Laundering and Terrorist Financing Act (Wwft)." This principle of AML/CFT regulation for crypto service providers extends to the BES Islands through their own Wwft BES, with DNB as the supervisory authority.
    *   **Source:** De Nederlandsche Bank (DNB) website.
    *   **URL:** [https://www.dnb.nl/en/sector-information/integrity-supervision/questions-and-answers-on-registration-for-crypto-service-providers/](https://www.dnb.nl/en/sector-information/integrity-supervision/questions-and-answers-on-registration-for-crypto-service-providers/)

4.  **Financial Action Task Force (FATF) - Mutual Evaluation of the Kingdom of the Netherlands:**
    *   **Excerpt/Summary:** FATF evaluations assess the Kingdom of the Netherlands as a whole, which includes the Caribbean Netherlands. These reports highlight the implementation of AML/CFT measures, including those related to virtual assets. The Kingdom's commitment to FATF standards implies that regulatory measures for crypto assets, particularly concerning AML/CFT, are expected and implemented across its territories, including the BES Islands. The 2022 Mutual Evaluation Report for the Kingdom of the Netherlands discusses the application of AML/CFT measures to virtual asset service providers (VASPs).
    *   **Source:** Financial Action Task Force (FATF) website.
    *   **URL:** [https://www.fatf-gafi.org/en/publications/Mutualevaluations/Mer-kingdom-netherlands-2022.html](https://www.fatf-gafi.org/en/publications/Mutualevaluations/Mer-kingdom-netherlands-2022.html) (The full report would contain details on the scope of VASP regulation within the Kingdom.)

5.  **Dutch Authority for the Financial Markets (AFM) - Warnings on Cryptos:**
    *   **Excerpt/Summary:** The AFM, alongside DNB, has issued numerous warnings to consumers about the risks of investing in cryptocurrencies. These warnings are generally applicable to all residents of the Kingdom of the Netherlands. For example, the AFM states: "Investing in crypto-assets involves risks. You can lose your entire investment. Be aware of the risks and only invest money you can afford to lose."
    *   **Source:** Autoriteit Financiële Markten (AFM) website.
    *   **URL:** [https://www.afm.nl/en/consumenten/onderwerpen/beleggen/risicos/crypto](https://www.afm.nl/en/consumenten/onderwerpen/beleggen/risicos/crypto) (This is an example of AFM's consumer warnings.)

In summary, retail cryptocurrency trading is allowed in the BES Islands. However, it operates within a regulated environment where service providers (exchanges and custodian wallet providers) are subject to AML/CFT registration and supervision by De Nederlandsche Bank under the Wwft BES. Individuals are permitted to trade but are also warned about the inherent risks.