Anguilla
Retail_Trading_Status
- Analysis ID
- #588
- Version
- Latest
- Created
- 2025-12-12 03:09
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- 88771566...
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- Workflow Stage
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Executive Summary
Retail cryptocurrency trading is legal and regulated in Anguilla under a comprehensive legislative framework that includes the Anguilla Utility Token Offering (AUTO) Act, the Utility Tokens Exchange Act, and the recently enacted Digital Assets Business Act (2023). The Anguilla Financial Services Commission (AFSC) serves as the primary regulator, overseeing the licensing of issuers, exchanges, and other service providers. Retail investors can freely buy, sell, and hold digital assets, provided they use platforms that comply with local AML/KYC requirements.
Key Pillars
Anguilla Financial Services Commission (AFSC) as the primary regulator for digital assets
Dual regulatory track: Utility Token specific regime (AUTO Act) and broader Digital Asset Business Act (DABA)
Mandatory licensing for exchanges, custodians, and issuers operating in or from Anguilla
Strict AML/CFT compliance required under the Proceeds of Crime Act and sector-specific regulations
Investor protection measures including white paper registration and disclosure requirements
Landmark Laws
Digital Assets Business Act, 2023 (Act No. 16/2023) - Enacted: 2023-05-01
- A comprehensive framework regulating 'digital asset businesses' including exchanges, custodians, and payment providers. It establishes licensing classes (A, B, C) based on activity and capital requirements.
- Source
Anguilla Utility Tokens Exchange Act, 2020 (Act No. 10/2020) - Enacted: 2020-05-01
- Specifically regulates the operation of exchanges that trade utility tokens, requiring them to be licensed and ensuring they maintain adequate systems for market fairness and user protection.
- Source
Anguilla Utility Token Offering Act (AUTO Act) (Act No. 4/2018) - Enacted: 2018-05-08
- Pioneering legislation that created a registration regime for Initial Utility Token Offerings (IUTOs), distinguishing them from securities and imposing disclosure and levy requirements.
- Source
Considerations
Anguilla distinguishes between 'Utility Tokens' (regulated under AUTO Act) and broader 'Digital Assets' (regulated under DABA 2023), creating a nuanced compliance landscape.
The Eastern Caribbean Central Bank (ECCB) has launched a CBDC (DCash) and advises caution with private crypto but does not ban it.
Unlicensed entities falsely claiming Anguilla registration are a known issue; the AFSC regularly publishes investor alerts naming these scams.
Tax neutrality: Anguilla is a zero-tax jurisdiction for income and capital gains, which extends to crypto profits for individuals.
Notes
Anguilla's 'Anguilla ZONE' (Special Economic Zone) may have specific provisions or streamlined processes for virtual asset businesses, separate from the general domestic regime.
Remaining Uncertainties
- The exact number of entities currently licensed under the new Digital Assets Business Act (2023) versus the older AUTO Act is not publicly aggregated in a single list.
- How the transition for entities previously registered under the AUTO Act to the new DABA framework is being managed in practice.
Detailed Explanation
Detailed Explanation
Retail cryptocurrency trading is legal and regulated in Anguilla. The jurisdiction operates under a comprehensive and evolving legislative framework designed to provide clarity and consumer protection. The primary regulator is the Anguilla Financial Services Commission (AFSC), which oversees the licensing and supervision of digital asset businesses. The regulatory structure features a dual track: one for utility tokens and another for broader digital asset activities. The pioneering Anguilla Utility Token Offering Act (AUTO Act) of 2018 created a specific registration regime for Initial Utility Token Offerings (IUTOs), distinguishing utility tokens from securities. This was followed by the Anguilla Utility Tokens Exchange Act in 2020, which regulates exchanges trading these specific tokens. The most recent and comprehensive law is the Digital Assets Business Act (DABA) of 2023, which establishes a licensing framework for a wide range of 'digital asset businesses' including exchanges, custodians, and payment providers, categorizing them into classes (A, B, C) based on activity and capital requirements. All licensed entities are subject to strict Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) compliance under the Proceeds of Crime Act and sector-specific regulations. Investor protection measures are embedded in the laws, including white paper registration and disclosure requirements for token issuers. Retail investors are free to buy, sell, and hold digital assets, but must use platforms that are properly licensed and comply with local AML/KYC rules. It is important to note that Anguilla maintains tax neutrality, meaning there is no income or capital gains tax, which extends to profits from cryptocurrency activities for individuals. A significant consideration is the distinction the regulatory framework makes between 'Utility Tokens' and broader 'Digital Assets', creating a nuanced compliance landscape for service providers. Furthermore, the Eastern Caribbean Central Bank (ECCB) has launched its own central bank digital currency (DCash) and advises caution with private cryptocurrencies but does not prohibit them. The AFSC actively monitors the market and regularly publishes investor alerts to warn the public about unlicensed entities falsely claiming Anguilla registration, which is a known issue.
Summary Points
I. Regulatory Status
* Retail cryptocurrency trading is Allowed-Regulated.
* It is legal for retail investors to buy, sell, and hold digital assets through licensed platforms.
* The jurisdiction operates a dual regulatory track: one for utility tokens and another for broader digital asset businesses.
II. Key Regulatory Bodies
* Anguilla Financial Services Commission (AFSC): The primary regulator overseeing licensing and supervision of digital asset issuers, exchanges, and other service providers.
* Eastern Caribbean Central Bank (ECCB): Has launched the DCash CBDC and issues advisory cautions regarding private cryptocurrencies but does not impose bans.
III. Important Legislation
* Digital Assets Business Act, 2023 (Act No. 16/2023): Enacted on 2023-05-01, this is the comprehensive framework regulating 'digital asset businesses' including exchanges, custodians, and payment providers. It establishes licensing classes (A, B, C) based on activity and capital requirements.
* Anguilla Utility Tokens Exchange Act, 2020 (Act No. 10/2020): Enacted on 2020-05-01, this law specifically regulates exchanges that trade utility tokens, requiring licensing and adequate systems for market fairness and user protection.
* Anguilla Utility Token Offering Act (AUTO Act) (Act No. 4/2018): Enacted on 2018-05-08, this pioneering legislation created a registration regime for Initial Utility Token Offerings (IUTOs), distinguishing them from securities and imposing disclosure and levy requirements.
IV. Compliance Requirements
* Mandatory licensing for exchanges, custodians, and issuers operating in or from Anguilla.
* Strict AML/CFT compliance required under the Proceeds of Crime Act and sector-specific regulations.
* Investor protection measures, including white paper registration and disclosure requirements for token issuers.
* Retail investors must use platforms that comply with local AML/KYC requirements.
V. Notable Restrictions or Limitations
* The regulatory framework creates a nuanced compliance landscape by distinguishing between 'Utility Tokens' (regulated under the AUTO Act) and broader 'Digital Assets' (regulated under the DABA 2023).
* Unlicensed entities falsely claiming Anguilla registration are a known issue; the AFSC regularly publishes investor alerts naming these scams.
VI. Recent Developments or Notes
* The enactment of the Digital Assets Business Act in 2023 represents a significant modernization and expansion of the regulatory framework.
* Anguilla is a zero-tax jurisdiction for income and capital gains, which extends to cryptocurrency profits for individuals.
* The 'Anguilla ZONE' (Special Economic Zone) may have specific provisions or streamlined processes for virtual asset businesses, separate from the general domestic regime.
Full Analysis Report
Full Analysis Report
Anguilla has established itself as a 'Allowed-Regulated' jurisdiction for cryptocurrency, having been an early mover in the Caribbean to enact specific legislation. The regulatory framework is overseen by the Anguilla Financial Services Commission (AFSC) and is characterized by a unique dual-track system. Initially, the territory focused on 'Utility Tokens' to attract non-security ICOs, enacting the Anguilla Utility Token Offering (AUTO) Act in 2018. This was followed by the Utility Tokens Exchange Act in 2020, which created a licensing regime specifically for platforms trading these tokens. These laws allow retail investors to participate in registered offerings and trade on licensed exchanges with clear legal protections.
In 2023, Anguilla modernized its approach by enacting the Digital Assets Business Act (DABA). This broader legislation covers a wider range of activities beyond just utility tokens, including digital asset custodians, payment service providers, and general crypto exchanges. The DABA introduces a tiered licensing structure (Class A, B, and C licenses) and aligns Anguilla's framework with international standards set by the FATF. This move addresses the 'travel rule' and strengthens AML/CFT obligations for all Virtual Asset Service Providers (VASPs).
Retail trading is fully permitted, and there are no prohibitions on individuals holding or transferring digital assets. The AFSC actively enforces these regulations, evidenced by their public 'Investor Alerts' which warn against unlicensed entities falsely claiming to be registered in Anguilla. This active policing confirms that the licensing regime is operational and not merely a 'paper tiger.' However, the specific list of active licensees is not prominently displayed on the main landing page of the regulator's site, often requiring a search through the 'Regulated Entities' database or specific sector guidelines.
While the Eastern Caribbean Central Bank (ECCB)—the monetary authority for the region—maintains a cautious stance on private cryptocurrencies due to volatility and financial stability risks, it has not imposed a ban. Instead, it focuses on its own CBDC project, DCash. Consequently, Anguilla remains a friendly jurisdiction for crypto activities, provided they are conducted through regulated channels. The absence of direct taxes on capital gains further enhances its appeal to retail investors and crypto entrepreneurs.
Anguilla has established itself as a 'Allowed-Regulated' jurisdiction for cryptocurrency, having been an early mover in the Caribbean to enact specific legislation. The regulatory framework is overseen by the Anguilla Financial Services Commission (AFSC) and is characterized by a unique dual-track system. Initially, the territory focused on 'Utility Tokens' to attract non-security ICOs, enacting the Anguilla Utility Token Offering (AUTO) Act in 2018. This was followed by the Utility Tokens Exchange Act in 2020, which created a licensing regime specifically for platforms trading these tokens. These laws allow retail investors to participate in registered offerings and trade on licensed exchanges with clear legal protections. In 2023, Anguilla modernized its approach by enacting the Digital Assets Business Act (DABA). This broader legislation covers a wider range of activities beyond just utility tokens, including digital asset custodians, payment service providers, and general crypto exchanges. The DABA introduces a tiered licensing structure (Class A, B, and C licenses) and aligns Anguilla's framework with international standards set by the FATF. This move addresses the 'travel rule' and strengthens AML/CFT obligations for all Virtual Asset Service Providers (VASPs). Retail trading is fully permitted, and there are no prohibitions on individuals holding or transferring digital assets. The AFSC actively enforces these regulations, evidenced by their public 'Investor Alerts' which warn against unlicensed entities falsely claiming to be registered in Anguilla. This active policing confirms that the licensing regime is operational and not merely a 'paper tiger.' However, the specific list of active licensees is not prominently displayed on the main landing page of the regulator's site, often requiring a search through the 'Regulated Entities' database or specific sector guidelines. While the Eastern Caribbean Central Bank (ECCB)—the monetary authority for the region—maintains a cautious stance on private cryptocurrencies due to volatility and financial stability risks, it has not imposed a ban. Instead, it focuses on its own CBDC project, DCash. Consequently, Anguilla remains a friendly jurisdiction for crypto activities, provided they are conducted through regulated channels. The absence of direct taxes on capital gains further enhances its appeal to retail investors and crypto entrepreneurs.
Source Evidence
Primary and secondary sources cited in this analysis
"The AUTO Act allows for the licensing and registration of two categories of service providers involved in utility token offerings, namely utility token offering administrator and utility token offering issuer."
"An Act to provide for the licensing and regulation of persons carrying on digital asset business, the supervision of digital asset business, and connected matters."
"SeaDex Verse Plc is not licensed... by the Commission to carry on the business of trading securities or commodities of any type, including cryptocurrencies."
"In May 2020, the Revised Statutes of Anguilla enacted the Anguilla Utilities Tokens Exchange Act... establishing a comprehensive framework for the licensing of Utilities Token Exchanges."
"A list of regulated entities can be found on the websites of the national regulators in each of the ECCB member countries."
Web Sources (1)
Sources discovered via web search grounding
Search queries used (12)
- Anguilla Financial Services Commission crypto regulation
- Anguilla Utility Token Offering Act current status
- Anguilla crypto exchange license requirements
- Eastern Caribbean Central Bank crypto stance Anguilla
- Anguilla Virtual Asset Business Act
- Anguilla crypto exchange license holders
- Anguilla regulated entities list utility token exchange
- Anguilla Financial Services Commission list of licensed digital asset businesses
- Anguilla Digital Assets Business Act 2023 repeal Utility Tokens Exchange Act
- Anguilla Financial Services Commission investor alerts crypto
- Anguilla "AUTO Act" registered issuers
- Anguilla Financial Services Commission licensed utility token service providers list
https://websterlp.com/digital-currency-and-the-anguillan-law/