Saint Helena, Ascension and Tristan da Cunha
Retail_Trading_Status
- Analysis ID
- #771
- Version
- Latest
- Created
- 2025-12-12 05:10
- Run
- 843a750b...
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- Workflow Stage
- Step 1
Executive Summary
Retail cryptocurrency trading is legally permitted in Saint Helena, Ascension, and Tristan da Cunha, as there are no laws explicitly banning the activity. The territory currently lacks a specific regulatory framework for virtual assets, a gap acknowledged in the 'Financial Services Regulation Policy 2025' which aims to modernize the financial sector. The sole commercial bank, Bank of St Helena, does not explicitly prohibit crypto-related transactions but exercises high caution regarding fraud and scams. Consequently, residents may trade on international platforms that accept them, though they face practical challenges due to limited banking infrastructure and strict anti-fraud monitoring.
Key Pillars
Financial Services Regulatory Authority (FSRA)
Bank of St Helena (Sole commercial bank and gatekeeper)
Financial Services Ordinance 2008 (General financial law, currently under review)
UK Sanctions Regime (Applied to Overseas Territories)
Landmark Laws
Financial Services Regulation Policy 2025 (Policy 2025) - Enacted: 2025-01-21
- A strategic policy document approved by the Executive Council to modernize the financial services framework. It explicitly identifies 'substantial gaps' in current legislation (Financial Services Ordinance 2008) and sets a target for comprehensive reform by March 2026 to align with international best practices, likely paving the way for future crypto regulation.
- Source
Financial Services Ordinance 2008 (Ordinance 11 of 2008) - Enacted: 2008-11-03
- The primary legislation governing financial services. It requires licenses for 'relevant business' (banking, insurance, investment) but does not explicitly define or regulate virtual assets, leaving them currently outside the specific licensing regime.
- Source
Considerations
Banking Monopoly: The Bank of St Helena is the only retail bank; while it supports SWIFT, it warns heavily against investment scams and may scrutinize crypto transfers.
Internet Latency: Historical connectivity issues have improved with the Equiano cable, but latency remains a practical consideration for high-frequency trading.
No Local Exchanges: There are no locally licensed crypto exchanges; residents must use offshore platforms.
Future Regulation: The 2025 Policy indicates that a new regulatory framework is imminent (target 2026), which may introduce licensing requirements for VASPs.
Legal Tender Distinction: Tristan da Cunha mints commemorative coins that are technically legal tender, but these are physical collector items, not digital currency.
Notes
The 'Digital Ascension Group' appearing in search results is a US-based entity and is unrelated to the governance of Ascension Island. The territory is currently in a 'pre-regulation' phase, with significant legislative updates expected by 2026.
Remaining Uncertainties
- Will the upcoming 2026 financial reforms introduce a specific VASP licensing regime similar to Bermuda or Gibraltar?
- Does the Bank of St Helena maintain an internal 'blocklist' of specific high-risk crypto exchanges?
- How will the FSRA enforce future regulations given the territory's limited resources?
Detailed Explanation
Detailed Explanation
Retail cryptocurrency trading is legally permitted and currently unregulated in Saint Helena, Ascension, and Tristan da Cunha. The territory lacks specific laws explicitly banning the activity, placing it in an 'Allowed-Unregulated' status. The primary legislation governing financial services is the Financial Services Ordinance 2008 (Ordinance 11 of 2008), enacted on November 3, 2008. This ordinance requires licenses for 'relevant business' such as banking, insurance, and investment, but it does not explicitly define or regulate virtual assets, leaving them outside the specific licensing regime. Consequently, there is no formal regulatory framework for cryptocurrency activities, and residents may trade on international platforms that accept them. The territory is currently in a 'pre-regulation' phase, with significant legislative updates expected by 2026.
The regulatory landscape is overseen by the Financial Services Regulatory Authority (FSRA), while the Bank of St Helena serves as the sole commercial bank and gatekeeper for financial transactions. The bank does not explicitly prohibit crypto-related transactions but exercises high caution regarding fraud and scams, warning heavily against investment scams and scrutinizing crypto transfers. The UK Sanctions Regime is also applied to the Overseas Territories, adding an external layer of financial control. The key development pointing toward future regulation is the Financial Services Regulation Policy 2025, enacted on January 21, 2025. This strategic policy document, approved by the Executive Council, aims to modernize the financial services framework. It explicitly identifies 'substantial gaps' in the current legislation and sets a target for comprehensive reform by March 2026 to align with international best practices, likely paving the way for future crypto regulation.
Practical challenges exist for residents due to limited banking infrastructure and strict anti-fraud monitoring by the Bank of St Helena. There are no locally licensed crypto exchanges, forcing residents to rely on offshore platforms. Internet latency, while improved with the Equiano cable, remains a consideration for high-frequency trading. It is important to distinguish that Tristan da Cunha mints commemorative coins that are technically legal tender, but these are physical collector items, not digital currency. The territory's status is expected to evolve as the Financial Services Regulation Policy 2025 implementation progresses toward its March 2026 target for comprehensive reform.
Summary Points
I. Regulatory Status
- Retail cryptocurrency trading is Allowed-Unregulated.
- No laws explicitly ban the activity.
- There is no specific regulatory framework for virtual assets.
- The territory is in a 'pre-regulation' phase.
II. Key Regulatory Bodies
- Financial Services Regulatory Authority (FSRA)
- Bank of St Helena
- The sole commercial bank and gatekeeper for financial transactions.
- Does not explicitly prohibit crypto-related transactions.
- Exercises high caution regarding fraud and scams and may scrutinize transfers.
- UK Sanctions Regime (Applied to Overseas Territories)
III. Important Legislation
- Financial Services Regulation Policy 2025 (Policy 2025)
- Enacted: 2025-01-21.
- A strategic policy document to modernize the financial services framework.
- Explicitly identifies 'substantial gaps' in current legislation.
- Sets a target for comprehensive reform by March 2026 to align with international best practices.
- Likely paves the way for future crypto regulation.
- Financial Services Ordinance 2008 (Ordinance 11 of 2008)
- Enacted: 2008-11-03.
- The primary legislation governing financial services.
- Requires licenses for 'relevant business' (banking, insurance, investment).
- Does not explicitly define or regulate virtual assets, leaving them outside the specific licensing regime.
IV. Compliance Requirements
- There are currently no specific licensing requirements for Virtual Asset Service Providers (VASPs) or cryptocurrency activities.
- General financial services licensing under the Financial Services Ordinance 2008 does not apply to crypto.
V. Notable Restrictions or Limitations
- Banking Monopoly: The Bank of St Helena is the only retail bank; it supports SWIFT but warns heavily against investment scams.
- No Local Exchanges: Residents must use offshore platforms.
- Internet Latency: Historical connectivity issues have improved with the Equiano cable, but latency remains a practical consideration for high-frequency trading.
- Legal Tender Distinction: Tristan da Cunha mints commemorative coins that are technically legal tender, but these are physical collector items, not digital currency.
VI. Recent Developments or Notes
- The Financial Services Regulation Policy 2025 indicates that a new regulatory framework is imminent (target 2026), which may introduce licensing requirements for VASPs.
- The 'Digital Ascension Group' appearing in search results is a US-based entity and is unrelated to the governance of Ascension Island.
- The territory's sole commercial bank exercises strict anti-fraud monitoring on transactions.
Full Analysis Report
Full Analysis Report
Saint Helena, Ascension, and Tristan da Cunha (St Helena) maintains an 'Allowed-UnRegulated' stance toward retail cryptocurrency trading. As a British Overseas Territory, its legal system is based on English Common Law, but it enacts its own local ordinances. Currently, the primary financial legislation, the Financial Services Ordinance 2008, does not contain specific provisions for virtual assets or Virtual Asset Service Providers (VASPs). This absence of prohibition means that buying, selling, and holding cryptocurrencies is legal for residents, provided they do not engage in illicit activities such as money laundering.
The regulatory environment is in a transition phase. In January 2025, the Executive Council approved the 'Financial Services Regulation Policy 2025', which explicitly acknowledges that the 2008 Ordinance has 'substantial gaps' and is out of step with modern financial products. The policy outlines a roadmap for comprehensive reform by March 2026. Until these new laws are enacted, crypto assets remain largely unregulated, with the Financial Services Regulatory Authority (FSRA) focusing on traditional financial sectors like banking and insurance.
Practically, the biggest constraint for retail traders is the banking infrastructure. The Bank of St Helena holds a monopoly on banking services for the islands. While the bank does not have a blanket ban on crypto transactions, it issues frequent warnings regarding 'investment scams' often linked to cryptocurrency. Users have reported that while SWIFT transfers to international exchanges are possible, they are subject to strict due diligence and potential delays if the bank suspects fraud. The bank's caution is driven by consumer protection concerns rather than a statutory ban.
Residents primarily access the crypto market through international exchanges that accept clients from the territory (e.g., SpectroCoin and others serving the region). There are no domestic exchanges. It is important to distinguish the territory's actual regulatory status from unrelated entities such as the US-based 'Digital Ascension Group', which has no regulatory authority on the islands. Furthermore, while Tristan da Cunha issues 'legal tender' commemorative coins, these are numismatic items and do not constitute a state-backed digital currency.
Saint Helena, Ascension, and Tristan da Cunha (St Helena) maintains an 'Allowed-UnRegulated' stance toward retail cryptocurrency trading. As a British Overseas Territory, its legal system is based on English Common Law, but it enacts its own local ordinances. Currently, the primary financial legislation, the Financial Services Ordinance 2008, does not contain specific provisions for virtual assets or Virtual Asset Service Providers (VASPs). This absence of prohibition means that buying, selling, and holding cryptocurrencies is legal for residents, provided they do not engage in illicit activities such as money laundering. The regulatory environment is in a transition phase. In January 2025, the Executive Council approved the 'Financial Services Regulation Policy 2025', which explicitly acknowledges that the 2008 Ordinance has 'substantial gaps' and is out of step with modern financial products. The policy outlines a roadmap for comprehensive reform by March 2026. Until these new laws are enacted, crypto assets remain largely unregulated, with the Financial Services Regulatory Authority (FSRA) focusing on traditional financial sectors like banking and insurance. Practically, the biggest constraint for retail traders is the banking infrastructure. The Bank of St Helena holds a monopoly on banking services for the islands. While the bank does not have a blanket ban on crypto transactions, it issues frequent warnings regarding 'investment scams' often linked to cryptocurrency. Users have reported that while SWIFT transfers to international exchanges are possible, they are subject to strict due diligence and potential delays if the bank suspects fraud. The bank's caution is driven by consumer protection concerns rather than a statutory ban. Residents primarily access the crypto market through international exchanges that accept clients from the territory (e.g., SpectroCoin and others serving the region). There are no domestic exchanges. It is important to distinguish the territory's actual regulatory status from unrelated entities such as the US-based 'Digital Ascension Group', which has no regulatory authority on the islands. Furthermore, while Tristan da Cunha issues 'legal tender' commemorative coins, these are numismatic items and do not constitute a state-backed digital currency.
Source Evidence
Primary and secondary sources cited in this analysis
"SHG has identified that St Helena's financial services laws and regulations require reform and modernisation... There are substantial gaps in current legislation."
"AN ORDINANCE TO REGULATE BANKING AND FINANCIAL SERVICES PROVIDED IN OR FROM ST. HELENA"
"Scammers may advertise or post on social media offering great returns from cryptocurrency trading... The scammer will encourage you to buy cryptocurrency through an exchange."
"The FSRA is responsible for the licensing and regulation of financial services businesses in the British Overseas Territory of St Helena, Ascension and Tristan da Cunha."
"Mark Brooks' final communication in the Independent before the general election was in support of cryptocurrency... It operates completely outside the traditional banking system and is unregulated."
"SWIFT transfers are supported by Bank of St Helena. The bank is cautious about crypto-related transactions, but usually won't block transfers."
Web Sources (2)
Sources discovered via web search grounding
Search queries used (12)
- Saint Helena Financial Services Ordinance crypto
- Saint Helena Ascension Tristan da Cunha cryptocurrency regulation
- Bank of St Helena cryptocurrency policy
- Tristan da Cunha crypto laws
- Saint Helena government crypto warnings
- Ascension Island financial services cryptocurrency
- Tristan da Cunha coin legal tender
- "Bank of St Helena" cryptocurrency transactions blocked
- Ascension Island Administrator crypto
- "Bank of St Helena" crypto policy
- Saint Helena Financial Services Regulatory Authority crypto guidance
- Saint Helena Financial Services Ordinance "virtual assets"
https://www.sainthelenabank.com/cybercrime-and-fraud-information/investment-scams/
https://cexfinder.com/country/st-helena/