Aruba

Aruba has established a formal regulatory environment for cryptocurrencies, transitioning from a 'buyer beware' approach to a supervised regime. Effective September 8, 2021, the Centrale Bank van Aruba (CBA) brought Virtual Asset Service Providers (VASPs) under its supervisory umbrella by amending the 'State Ordinance for the Prevention and Combating of Money Laundering and Terrorist Financing' (AML/CFT State Ordinance). This amendment classifies VASPs as Designated Non-Financial Service Providers (DNFBPs), requiring them to register with the CBA and implement robust AML/KYC protocols.

The regulatory framework explicitly prohibits any natural or legal person from professionally engaging in the exchange of virtual currencies (fiat-to-crypto or crypto-to-crypto), providing custodian wallets, or facilitating transfers in or from Aruba without registration. A grace period was provided until December 8, 2021, after which unregistered operation became a violation of Article 50 of the State Ordinance, subject to enforcement actions. This move aligns Aruba with FATF Recommendation 15 regarding new technologies.

Despite the existence of this registration regime, the practical environment for retail traders remains challenging. The CBA continues to issue strong public warnings, such as the June 2023 notice, highlighting that crypto assets themselves are 'largely unregulated' (referring to the lack of prudential and consumer protection standards compared to traditional banking products) and highly volatile. The CBA has specifically warned about fraudulent schemes on social media that misuse the logos of reputable Aruban banks to feign legitimacy.

Furthermore, the integration of crypto with the local banking sector is poor. Reports and anecdotal evidence indicate that major Aruban banks, driven by strict compliance obligations and de-risking strategies, often refuse to process transactions related to cryptocurrency exchanges. Consequently, while it is legally permissible for residents to trade, they often must rely on international payment processors or foreign accounts to facilitate funding, as local infrastructure remains hostile to the asset class.