Saint Lucia
Retail_Trading_Status
- Analysis ID
- #772
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- 2025-12-12 05:10
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- eedd8589...
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Executive Summary
Retail cryptocurrency trading is legal and regulated in Saint Lucia under the Virtual Asset Business Act, No. 24 of 2022, and its operational framework, the Virtual Asset Business Regulations, enacted in March 2025. The Financial Services Regulatory Authority (FSRA) serves as the primary regulator, requiring all Virtual Asset Service Providers (VASPs) to obtain a license and adhere to strict AML/KYC standards. While the regulatory regime is fully established, it is relatively new, with the licensing process formally opening to stakeholders following the 2025 regulations.
Key Pillars
Financial Services Regulatory Authority (FSRA) as the primary supervisor for VASPs
Mandatory licensing for all crypto-asset businesses (exchanges, custodians, wallet providers)
Compliance with the Money Laundering (Prevention) Act, updated in 2023 to cover virtual assets
Requirements for client asset segregation and cybersecurity standards
Eastern Caribbean Central Bank (ECCB) oversight for monetary stability and digital currency pilots
Landmark Laws
Virtual Asset Business Act, No. 24 of 2022 (Act No. 24 of 2022) - Enacted: 2022-12-28
- The primary legislation establishing the legal framework for virtual asset businesses. It defines virtual assets, mandates licensing for service providers, and outlines powers for the FSRA to supervise the sector.
- Source
Virtual Asset Business Regulations, 2025 (S.I. No. 37 of 2025) - Enacted: 2025-03-03
- Operational regulations detailing the licensing process, capital requirements, client protection safeguards, and reporting obligations for VASPs. Enacted to fully operationalize the 2022 Act.
- Source
Money Laundering (Prevention) (Amendment) Act (Act No. 5 of 2023) - Enacted: 2023-03-09
- Amends the principal AML act to explicitly include 'virtual asset business' as a regulated activity, enforcing FATF Travel Rule compliance and suspicious transaction reporting.
- Source
Considerations
Taxation: Saint Lucia generally does not levy capital gains tax on individuals, but professional trading income may be subject to income tax.
Banking Access: While regulated, VASPs may still face practical challenges securing local banking services due to de-risking by correspondent banks.
Regional Context: Saint Lucia is part of the Eastern Caribbean Currency Union (ECCU), and its regulations align with the ECCB's harmonized framework.
Licensing Status: The regulations are recent (March 2025); while the regime is 'active', the list of licensed entities may be short or in the processing stage.
Notes
The regulatory environment is current as of late 2025. The enactment of regulations in March 2025 marks the transition from a legislative framework to an operational licensing regime. Saint Lucia is harmonized with the wider Eastern Caribbean Currency Union (ECCU) approach.
Remaining Uncertainties
- The exact number of licenses issued since the March 2025 regulations were enacted is not publicly detailed in the search snippets.
- Specific tax guidance for retail crypto trading (beyond general income tax principles) remains absent.
Detailed Explanation
Detailed Explanation
Retail cryptocurrency trading is legal and regulated in Saint Lucia. The comprehensive regulatory framework is established under the Virtual Asset Business Act, No. 24 of 2022, which was enacted on December 28, 2022, and its operational counterpart, the Virtual Asset Business Regulations, which came into force on March 3, 2025. This framework mandates that all Virtual Asset Service Providers (VASPs), including exchanges, custodians, and wallet providers, must obtain a license from the primary supervisor, the Financial Services Regulatory Authority (FSRA). The regime is fully established but relatively new, with the formal licensing process for stakeholders opening following the 2025 regulations. The regulatory pillars are further reinforced by the Money Laundering (Prevention) (Amendment) Act of March 9, 2023, which explicitly brings virtual asset businesses under anti-money laundering (AML) oversight, enforcing compliance with standards like the FATF Travel Rule and suspicious transaction reporting. The Eastern Caribbean Central Bank (ECCB) also plays a role in overseeing monetary stability and digital currency pilots within the regional context of the Eastern Caribbean Currency Union (ECCU), with which Saint Lucia's regulations are aligned. Key requirements for licensed entities include strict adherence to AML and know-your-customer (KYC) standards, client asset segregation, and robust cybersecurity measures. While the regulatory environment is active and clear, regulated VASPs may still encounter practical challenges, such as difficulties in securing local banking services due to de-risking by correspondent banks. From a taxation perspective, Saint Lucia generally does not impose capital gains tax on individuals, though income from professional trading may be subject to income tax. The regulatory environment is current as of late 2025, marking a transition from a legislative framework to an operational licensing regime.
Summary Points
I. Regulatory Status
* Retail cryptocurrency trading is Allowed-Regulated in Saint Lucia.
* The legal framework is fully established and operational as of March 2025.
* All Virtual Asset Service Providers (VASPs) must be licensed.
II. Key Regulatory Bodies
* Financial Services Regulatory Authority (FSRA): The primary supervisor and licensing authority for VASPs.
* Eastern Caribbean Central Bank (ECCB): Provides oversight for monetary stability and digital currency pilots within the regional Eastern Caribbean Currency Union (ECCU).
III. Important Legislation
* Virtual Asset Business Act, No. 24 of 2022 (Act No. 24 of 2022):
* Enacted: December 28, 2022.
* The primary law establishing the legal framework; defines virtual assets, mandates licensing, and outlines FSRA supervisory powers.
* Virtual Asset Business Regulations, 2025 (S.I. No. 37 of 2025):
* Enacted: March 3, 2025.
* Operational regulations detailing the licensing process, capital requirements, client protection, and reporting obligations.
* Money Laundering (Prevention) (Amendment) Act (Act No. 5 of 2023):
* Enacted: March 9, 2023.
* Amends the principal AML act to explicitly include 'virtual asset business' as a regulated activity, enforcing FATF Travel Rule compliance.
IV. Compliance Requirements
* Mandatory licensing for all crypto-asset businesses (exchanges, custodians, wallet providers).
* Strict adherence to AML/KYC standards under the updated Money Laundering (Prevention) Act.
* Requirements for client asset segregation and robust cybersecurity standards.
* Compliance with reporting obligations, including suspicious transaction reporting.
V. Notable Restrictions or Limitations
* Banking Access: Licensed VASPs may face practical challenges securing local banking services due to de-risking by correspondent banks.
* Taxation: While capital gains tax is generally not levied on individuals, income from professional trading may be subject to income tax.
VI. Recent Developments or Notes
* The regulatory regime transitioned to fully operational with the enactment of the Virtual Asset Business Regulations in March 2025.
* The licensing process is formally open, but the list of licensed entities may be short or in processing due to the recent implementation.
* Saint Lucia's framework is harmonized with the wider Eastern Caribbean Currency Union (ECCU) approach.
* The analysis reflects the regulatory environment as of late 2025.
Full Analysis Report
Full Analysis Report
Saint Lucia has established a comprehensive and clear regulatory framework for cryptocurrency activities, transitioning from a general oversight model to a specific statutory regime. The cornerstone of this framework is the Virtual Asset Business Act, No. 24 of 2022, which was passed in December 2022. This Act mandates that any entity offering services related to the exchange, transfer, or custody of virtual assets must be licensed by the Financial Services Regulatory Authority (FSRA). The Act was designed to align Saint Lucia with international standards set by the Financial Action Task Force (FATF), specifically Recommendation 15 regarding new technologies.
The regulatory framework was fully operationalized with the enactment of the Virtual Asset Business Regulations (Statutory Instrument No. 37 of 2025) on March 3, 2025. These regulations provide the necessary procedural details for licensing, including application fees, capital adequacy requirements, and specific consumer protection mandates. Following the enactment, the FSRA launched consultation sessions to guide prospective licensees through the application process, signaling a 'open for business' approach to the sector.
From a retail perspective, individual residents are permitted to buy, sell, and hold cryptocurrencies. There are no prohibitions on retail trading, and the licensing of local intermediaries provides a layer of consumer protection that was previously absent. However, retail users should be aware that while the sector is regulated, the FSRA emphasizes that crypto assets are not legal tender (unlike the Eastern Caribbean Dollar) and carry market risks.
Compliance with anti-money laundering (AML) protocols is strictly enforced. The Money Laundering (Prevention) Act was amended in 2023 to explicitly cover virtual asset businesses, requiring them to conduct Customer Due Diligence (CDD), monitor transactions, and report suspicious activities to the Financial Intelligence Authority (FIA). This places Saint Lucia's crypto sector under the same rigorous AML/CFT scrutiny as its traditional banking and insurance sectors.
Saint Lucia has established a comprehensive and clear regulatory framework for cryptocurrency activities, transitioning from a general oversight model to a specific statutory regime. The cornerstone of this framework is the Virtual Asset Business Act, No. 24 of 2022, which was passed in December 2022. This Act mandates that any entity offering services related to the exchange, transfer, or custody of virtual assets must be licensed by the Financial Services Regulatory Authority (FSRA). The Act was designed to align Saint Lucia with international standards set by the Financial Action Task Force (FATF), specifically Recommendation 15 regarding new technologies. The regulatory framework was fully operationalized with the enactment of the Virtual Asset Business Regulations (Statutory Instrument No. 37 of 2025) on March 3, 2025. These regulations provide the necessary procedural details for licensing, including application fees, capital adequacy requirements, and specific consumer protection mandates. Following the enactment, the FSRA launched consultation sessions to guide prospective licensees through the application process, signaling a 'open for business' approach to the sector. From a retail perspective, individual residents are permitted to buy, sell, and hold cryptocurrencies. There are no prohibitions on retail trading, and the licensing of local intermediaries provides a layer of consumer protection that was previously absent. However, retail users should be aware that while the sector is regulated, the FSRA emphasizes that crypto assets are not legal tender (unlike the Eastern Caribbean Dollar) and carry market risks. Compliance with anti-money laundering (AML) protocols is strictly enforced. The Money Laundering (Prevention) Act was amended in 2023 to explicitly cover virtual asset businesses, requiring them to conduct Customer Due Diligence (CDD), monitor transactions, and report suspicious activities to the Financial Intelligence Authority (FIA). This places Saint Lucia's crypto sector under the same rigorous AML/CFT scrutiny as its traditional banking and insurance sectors.
Source Evidence
Primary and secondary sources cited in this analysis
"The Financial Services Regulatory Authority (FSRA) is pleased to announce that the Virtual Asset Business Regulations have been enacted on March 3, 2025, providing a comprehensive framework..."
"No. 37 of 2025 — Virtual Asset Business Regulations."
"AN ACT to provide for the regulation and supervision of a virtual asset business in or from Saint Lucia and for related matters."
"“virtual asset business” has the meaning assigned under the Virtual Asset Business Act, No. 24 of 2022;"
"The Regulations have been issued in four member countries namely the Commonwealth of Dominica, Grenada, Montserrat, and Saint Lucia."
Web Sources (8)
Sources discovered via web search grounding
Search queries used (9)
- Saint Lucia Virtual Asset Business Act
- Saint Lucia cryptocurrency regulation 2024
- Saint Lucia Money Laundering Prevention Act virtual assets
- ECCB cryptocurrency regulation Saint Lucia
- Financial Services Regulatory Authority Saint Lucia virtual assets
- "Saint Lucia" crypto tax residents
- "Saint Lucia" "Virtual Asset Business Regulations" 2025
- "Saint Lucia" "Virtual Asset Business Act" license issued
- "Virtual Asset Business" "Regulated Entities"
https://legalbison.com/crypto-license/saint-lucia/
https://npc.govt.lc/files/documents/gazettes/2025/3/Gazette%20%20March%203,%202025.pdf
https://fsrastlucia.org/images/VASP012025.pdf
https://npc.govt.lc/laws/download/T1dVbFFjRVYzMVhYdC9lTHNlZ2RreTNwSVN3VXJLYllBdEhXc2cwdW16K002Zm12NklVT0JObzFjandnWEFoczBxUTdMb3hqeGFNaDdwMXluQVFYbHRKNk1Gc0wraHd4QWhPSng2UUFBUFk9
https://gofaizen-sherle.com/crypto-license/saint-lucia
https://prifinance.com/en/cryptocurrency-license/st-lucia/
https://npc.govt.lc/laws/download/UjVlcXRvZTd3RG93ODVaQ0tsbWNwY1Ezc2JGNTg2NGZWVlp2czFZamNHc09tL1h0c011dnlJNzNRWktkMXBLbjVTemphOTJXcEUwblhvalVMZ2ZCRHZ1Um1TS2tOelFDdG5qZnc3WmNKSzBpMW5Pc1JGOFZnWlhHRUprVWxTeCs=
https://cdn.eccb-centralbank.org/documents/2025-07-02-13-05-37-ECCB-2024-2025-Annual-ReportR.pdf