Jamaica
Retail_Trading_Status
- Analysis ID
- #697
- Version
- Archived
- Created
- 2025-12-12 04:41
- Run
- 5684c132...
- History
- View all versions
- Workflow Stage
- Step 1
Executive Summary
Retail cryptocurrency trading is legal in Jamaica but currently lacks a specific regulatory framework for non-security virtual assets. The Bank of Jamaica (BOJ) has repeatedly issued warnings that cryptocurrencies are not legal tender and are not supervised by the central bank, distinguishing them from its own CBDC, Jam-Dex. While the Financial Services Commission (FSC) has asserted jurisdiction over virtual assets that qualify as securities, a comprehensive 'Virtual Assets Service Provider (VASP) Bill' is currently programmed for passage in the 2025/26 fiscal year to establish a licensing regime. Until this legislation is enacted, crypto-asset operations exist in a 'light regime' or gray area where general AML/CFT laws apply, but specific VASP licenses are not yet mandatory or available.
Key Pillars
Bank of Jamaica (BOJ): Issues warnings on volatility and clarifies non-legal tender status; manages the 'Jam-Dex' CBDC.
Financial Services Commission (FSC): Regulates virtual assets deemed to be securities; expected to oversee the upcoming VASP licensing regime.
Anti-Money Laundering (AML): The Proceeds of Crime Act (POCA) applies to financial transactions, requiring due diligence, though specific VASP reporting structures are being formalized.
Fintech Regulatory Sandbox: A mechanism managed by the BOJ allowing tested implementation of financial innovations, including digital assets.
Landmark Laws
Virtual Assets Service Provider (VASP) Bill (Pending (Programmed for 2025/26))
- Proposed legislation aimed at establishing a licensing and supervisory framework for virtual asset service providers to comply with FATF Recommendation 15. It is programmed for passage in the 2025/26 fiscal year.
Bank of Jamaica (Amendment) Act, 2022 (Act 5 of 2022) - Enacted: 2022-06-14
- Amended the BOJ Act to recognize 'Central Bank Digital Currency' (Jam-Dex) as legal tender, explicitly distinguishing it from private cryptocurrencies.
- Source
Proceeds of Crime Act (POCA) (POCA) - Enacted: 2007-05-30
- The primary AML/CFT legislation. While not originally specific to crypto, its general provisions on 'property' and 'criminal property' cover illicit crypto transactions.
- Source
Securities Act (Securities Act)
- Governs the issuance and trading of securities. The FSC applies this act to any virtual asset that exhibits the characteristics of a security.
- Source
Considerations
Legal Tender Distinction: Only the CBDC 'Jam-Dex' is legal tender; private crypto (Bitcoin, etc.) is not.
Banking Access: Jamaican banks are risk-averse regarding crypto transactions due to de-risking concerns, often making it difficult to convert fiat to crypto directly via local bank transfers.
Pending Regulation: The regulatory environment is in transition. The upcoming VASP Bill (2025/26) will likely move the status from 'Allowed-UnRegulated' to 'Allowed-Regulated'.
Taxation: Capital gains tax applies to profits from cryptocurrency trading, treated as digital assets.
FSC Advisories: The FSC has previously issued (and pulled) advisories requiring registration for digital asset issuers, creating some ambiguity about current enforcement.
Notes
The distinction between the 'Jam-Dex' CBDC and private crypto is critical in Jamaica. The government promotes Jam-Dex heavily while warning against Bitcoin. The regulatory landscape is poised for a major shift in 2025/26 with the VASP Bill.
Remaining Uncertainties
- The exact enactment date of the VASP Bill within the 2025/26 fiscal year.
- Whether the FSC is currently enforcing any registration requirements for non-security tokens under general powers before the VASP Bill passes.
- The extent of local banking support for crypto transactions (de-risking severity).
Full Analysis Report
Full Analysis Report
As of late 2025, the regulatory status of retail cryptocurrency trading in Jamaica is best classified as 'Allowed-UnRegulated'. There is no explicit ban on the buying, selling, or holding of cryptocurrencies by individuals. However, the sector operates without a dedicated, enacted legislative framework for Virtual Asset Service Providers (VASPs), although such legislation is imminent. The government's primary focus has been on the successful rollout of its Central Bank Digital Currency (CBDC), Jam-Dex, which is legal tender and distinct from private cryptocurrencies like Bitcoin.
The Bank of Jamaica (BOJ) maintains a hands-off approach to private cryptocurrencies, repeatedly stating that it does not regulate or supervise them. The BOJ has issued multiple cautions advising the public that private digital currencies are not legal tender and carry significant risks regarding volatility and lack of consumer protection. Consequently, retail investors trade at their own risk, with no recourse to the central bank in the event of loss or fraud.
The Financial Services Commission (FSC) has asserted jurisdiction over virtual assets that qualify as securities under the Securities Act. In the past, the FSC released advisories outlining registration requirements for issuers of digital assets, but reports indicate these were later retracted or not fully enforced as a general VASP regime. The 'Virtual Assets Service Provider (VASP) Bill' is the anticipated comprehensive law, programmed for passage in the 2025/26 fiscal year. This bill is expected to introduce mandatory licensing, fit-and-proper tests for operators, and strict AML/CFT compliance aligned with FATF standards.
Until the VASP Bill is passed and implemented, exchanges and wallet providers operate in a 'gray area' or light regulatory regime. While they are subject to general laws regarding fraud and money laundering (under the Proceeds of Crime Act), there is no public register of licensed crypto-exchanges. Local banks remain cautious, often restricting transactions related to crypto exchanges to avoid de-risking challenges with correspondent banks. This creates practical hurdles for retail traders wishing to onboard fiat currency, despite the activity being legally permitted.
As of late 2025, the regulatory status of retail cryptocurrency trading in Jamaica is best classified as 'Allowed-UnRegulated'. There is no explicit ban on the buying, selling, or holding of cryptocurrencies by individuals. However, the sector operates without a dedicated, enacted legislative framework for Virtual Asset Service Providers (VASPs), although such legislation is imminent. The government's primary focus has been on the successful rollout of its Central Bank Digital Currency (CBDC), Jam-Dex, which is legal tender and distinct from private cryptocurrencies like Bitcoin. The Bank of Jamaica (BOJ) maintains a hands-off approach to private cryptocurrencies, repeatedly stating that it does not regulate or supervise them. The BOJ has issued multiple cautions advising the public that private digital currencies are not legal tender and carry significant risks regarding volatility and lack of consumer protection. Consequently, retail investors trade at their own risk, with no recourse to the central bank in the event of loss or fraud. The Financial Services Commission (FSC) has asserted jurisdiction over virtual assets that qualify as securities under the Securities Act. In the past, the FSC released advisories outlining registration requirements for issuers of digital assets, but reports indicate these were later retracted or not fully enforced as a general VASP regime. The 'Virtual Assets Service Provider (VASP) Bill' is the anticipated comprehensive law, programmed for passage in the 2025/26 fiscal year. This bill is expected to introduce mandatory licensing, fit-and-proper tests for operators, and strict AML/CFT compliance aligned with FATF standards. Until the VASP Bill is passed and implemented, exchanges and wallet providers operate in a 'gray area' or light regulatory regime. While they are subject to general laws regarding fraud and money laundering (under the Proceeds of Crime Act), there is no public register of licensed crypto-exchanges. Local banks remain cautious, often restricting transactions related to crypto exchanges to avoid de-risking challenges with correspondent banks. This creates practical hurdles for retail traders wishing to onboard fiat currency, despite the activity being legally permitted.
Source Evidence
Primary and secondary sources cited in this analysis
"The Virtual Assets Service Provider (VASP) Bill is being programmed for passage in Parliament during fiscal year 2025/26, signalling Jamaica's commitment to financial integrity."
"Cryptocurrencies are digital currencies that are not issued or guaranteed by a central bank... Bank of Jamaica does not regulate or supervise these forms of digital currencies."
"Insertion of new section 45B... 'central bank digital currency' means a digital form of currency... that is legal tender"
"All Issuers of Digital Assets are required to register with the FSC pursuant to the requirements as described in the Guidelines for Issuers of Securities."
"Jamaica still has a light regime, but the Government has now programmed the Virtual Assets Service Provider (VASP) Bill for passage in 2025/26"
"As of 2025, cryptocurrencies are not officially recognized as legal tender in Jamaica. However, their use in transactions and trading is not prohibited"
Web Sources (2)
Sources discovered via web search grounding
Search queries used (8)
- Bank of Jamaica caution on cryptocurrencies
- Is buying bitcoin legal in Jamaica
- Jamaica VASP legislation status
- Financial Services Commission Jamaica virtual assets guidelines
- Bank of Jamaica cryptocurrency regulation status 2024 2025
- Are crypto exchanges licensed in Jamaica
- "Bank of Jamaica" "virtual asset" regulation
- Jamaica Proceeds of Crime Act virtual assets amendment
https://coincub.com/countries/jamaica/
https://blog.mexc.com/wiki/are-there-any-taxes-for-crypto-in-jamaica/