Sint Maarten (Dutch part)
Retail_Trading_Status
- Analysis ID
- #787
- Version
- Latest
- Created
- 2025-12-12 05:14
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- 757dfa40...
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- Workflow Stage
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Executive Summary
Retail cryptocurrency trading in Sint Maarten currently operates in a regulatory Gray-Zone. While the shared Central Bank of Curaçao and Sint Maarten (CBCS) has successfully implemented a licensing regime in Curaçao as of March 2025, the corresponding legislative framework for Sint Maarten remains in a pending or transitional phase. Consequently, while the CBCS requests VASP registration and enforces AML compliance, the specific 'National Ordinance on Virtual Asset Service Providers' for Sint Maarten has not been definitively enacted, creating a discrepancy where supervision is active but the legal basis is lagging.
Key Pillars
Centrale Bank van Curaçao en Sint Maarten (CBCS) - Primary Financial Regulator
Financial Intelligence Unit (FIU) Sint Maarten - AML/CFT Reporting Authority
National Ordinance on the Reporting of Unusual Transactions (NORUT) - Existing AML Framework
Pending National Ordinance on Virtual Asset Service Providers - Draft Crypto-Specific Law
Landmark Laws
Draft National Ordinance on Virtual Asset Service Providers (Pending Enactment)
- A proposed law designed to align Sint Maarten with FATF Recommendation 15, requiring VASP registration and compliance. Its counterpart in Curaçao was enacted in March 2025.
National Ordinance on the Reporting of Unusual Transactions (NORUT) (AB 2013, GT no. 479) - Enacted: 2013-01-01
- General AML/CFT legislation requiring financial service providers to report suspicious transactions to the FIU. Applies to crypto transactions under 'value transfer' interpretations.
- Source
Initiative Law on Tron Legal Tender (Proposal) (Draft Initiative)
- A 2023 proposal by MP Rolando Brison to designate Tron (TRX) as legal tender. The proposal faced opposition from the Central Bank and did not pass into law.
Considerations
Tax Treatment: Capital gains on cryptocurrency for individuals are currently untaxed (0%) as Sint Maarten lacks a specific capital gains tax regime for personal assets.
Banking Restrictions: Local banks (e.g., Windward Islands Bank) are highly risk-averse regarding crypto due to de-risking policies.
Foreign Exchange Control: A 1% license fee applies to foreign exchange transactions (outgoing transfers), which impacts crypto arbitrage and funding of international exchange accounts.
Regulatory Lag: Sint Maarten shares a Central Bank with Curaçao but has a separate parliament, causing delays in enacting parallel legislation.
Notes
The analysis assumes the current date is December 12, 2025. The divergence between Curaçao (regulated) and Sint Maarten (pending) is the critical factor. While the Central Bank treats them as a single monetary union, the legislative process is separate, causing the 'Gray-Zone' classification for Sint Maarten specifically.
Remaining Uncertainties
- The exact date when the Sint Maarten parliament will enact the 'National Ordinance on Virtual Asset Service Providers' to match Curaçao's framework.
- Whether the CBCS is currently imposing fines or sanctions on Sint Maarten-based VASPs for non-registration despite the law being pending.
Detailed Explanation
Detailed Explanation
Retail cryptocurrency trading in Sint Maarten operates in a regulatory Gray-Zone as of December 2025. The primary financial regulator, the Centrale Bank van Curaçao en Sint Maarten (CBCS), actively supervises the sector and requests Virtual Asset Service Provider (VASP) registration, yet the specific legal framework for this supervision in Sint Maarten remains pending. This critical discrepancy arises because the CBCS's counterpart in Curaçao successfully enacted its 'National Ordinance on Virtual Asset Service Providers' in March 2025, but the parallel ordinance for Sint Maarten has not been definitively enacted. Consequently, while the CBCS enforces Anti-Money Laundering (AML) compliance, the formal legal basis for a comprehensive crypto licensing regime is lagging, creating an environment of active but not fully codified oversight. The existing AML framework is anchored by the National Ordinance on the Reporting of Unusual Transactions (NORUT), enacted on January 1, 2013. This law requires all financial service providers, which includes VASPs under a 'value transfer' interpretation, to report suspicious transactions to the Financial Intelligence Unit (FIU) Sint Maarten. The pending Draft National Ordinance on Virtual Asset Service Providers is designed to align Sint Maarten with FATF Recommendation 15 and would formalize the CBCS's supervisory role. Other notable legislative activity includes the failed 2023 Initiative Law on Tron Legal Tender, a proposal by MP Rolando Brison that faced opposition from the Central Bank and did not pass. Practically, this Gray-Zone status is compounded by several market constraints. Local banks, such as the Windward Islands Bank, are highly risk-averse and engage in de-risking, creating significant banking restrictions for crypto businesses. Furthermore, a foreign exchange control imposing a 1% license fee on outgoing transfers impacts crypto arbitrage and the funding of international exchange accounts. For individual traders, a notable consideration is the tax treatment of capital gains, which are currently untaxed (0%) due to the absence of a specific capital gains tax regime for personal assets. The regulatory lag is fundamentally a structural issue, as Sint Maarten shares a central bank with Curaçao but maintains a separate parliament, causing delays in enacting parallel legislation.
Summary Points
Regulatory Analysis: Sint Maarten (Dutch part)
I. Regulatory Status
* Gray-Zone as of December 2025.
* Active supervision by the Centrale Bank van Curaçao en Sint Maarten (CBCS) exists, but the specific legal framework for Sint Maarten is pending.
* Critical divergence from Curaçao, which enacted its parallel VASP law in March 2025.
II. Key Regulatory Bodies
* Centrale Bank van Curaçao en Sint Maarten (CBCS)
* Primary financial regulator; requests VASP registration and enforces AML compliance.
* Financial Intelligence Unit (FIU) Sint Maarten
* AML/CFT reporting authority for suspicious transactions.
III. Important Legislation
* Draft National Ordinance on Virtual Asset Service Providers
* Status: Pending enactment.
* Purpose: To align with FATF Recommendation 15 and formalize VASP licensing.
* National Ordinance on the Reporting of Unusual Transactions (NORUT) (AB 2013, GT no. 479)
* Status: Enacted January 1, 2013.
* Applies to crypto transactions under a 'value transfer' interpretation.
* Initiative Law on Tron Legal Tender (Proposal)
* Status: Draft initiative from 2023 that did not pass.
* Proposed by MP Rolando Brison and faced Central Bank opposition.
IV. Compliance Requirements
* VASPs are expected to register with the CBCS.
* Mandatory AML/CFT compliance under the existing NORUT framework, including reporting suspicious transactions to the FIU Sint Maarten.
V. Notable Restrictions or Limitations
* Banking Restrictions: Local banks (e.g., Windward Islands Bank) are highly risk-averse due to de-risking policies.
* Foreign Exchange Control: A 1% license fee applies to outgoing foreign exchange transactions, impacting crypto arbitrage and international exchange funding.
* Regulatory Lag: Separate parliament from Curaçao causes delays in enacting parallel legislation, despite shared central bank.
VI. Recent Developments or Notes
* Tax Treatment: Capital gains on cryptocurrency for individuals are untaxed (0%) due to the lack of a specific capital gains tax regime.
* The analysis assumes the current date is December 12, 2025.
* The Gray-Zone classification is specific to Sint Maarten, contrasting with Curaçao's regulated status.
Full Analysis Report
Full Analysis Report
As of December 2025, the regulatory status of cryptocurrency in Sint Maarten is best classified as a 'Gray-Zone' due to the legislative lag between the country and its monetary union partner, Curaçao. The two countries share the Central Bank of Curaçao and Sint Maarten (CBCS), which has been aggressively pushing for a regulated VASP environment. While Curaçao successfully enacted the 'Landsverordening toezicht virtuele activa dienstverleners' (National Ordinance on the Supervision of Virtual Asset Service Providers) in March 2025, Sint Maarten's parliament has been slower to pass the corresponding legislation. This creates a complex environment where the regulator (CBCS) expects compliance and registration based on regional standards, but the specific statutory authority in Sint Maarten is pending or incomplete.
The CBCS has issued mandates requiring Virtual Asset Service Providers (VASPs) to register, citing AML/CFT concerns and FATF compliance. In June 2024, the CBCS explicitly noted that while the legal framework was being finalized in Curaçao, similar legislation was 'still in progress' for Sint Maarten, yet urged entities to register voluntarily. This 'enforcement without full law' is a hallmark of a Gray-Zone status. Entities operating in Sint Maarten face uncertainty: they are subject to FIU reporting under general AML laws (NORUT) but lack a clear, enacted licensing regime specific to their industry.
Previously, in 2023, there was a high-profile political push by Member of Parliament Rolando Brison to designate the Tron (TRX) blockchain as the country's national blockchain and legal tender. This proposal generated significant media attention but ultimately failed to gain legislative traction or Central Bank support. The CBCS has consistently warned against the risks of unregulated crypto assets and opposed the adoption of crypto as legal tender, further muddying the waters with conflicting signals between political initiatives and regulatory prudence.
From a tax perspective, Sint Maarten remains attractive for individual retail traders. The jurisdiction does not levy a capital gains tax on personal assets, meaning profits from crypto trading are generally tax-free for individuals. However, practical barriers remain high. Local banks, such as the Windward Islands Bank, maintain strict compliance policies that often result in the blocking of crypto-related transactions. Additionally, a 1% foreign exchange license fee on outgoing transfers adds a friction cost to funding international crypto exchange accounts.
As of December 2025, the regulatory status of cryptocurrency in Sint Maarten is best classified as a 'Gray-Zone' due to the legislative lag between the country and its monetary union partner, Curaçao. The two countries share the Central Bank of Curaçao and Sint Maarten (CBCS), which has been aggressively pushing for a regulated VASP environment. While Curaçao successfully enacted the 'Landsverordening toezicht virtuele activa dienstverleners' (National Ordinance on the Supervision of Virtual Asset Service Providers) in March 2025, Sint Maarten's parliament has been slower to pass the corresponding legislation. This creates a complex environment where the regulator (CBCS) expects compliance and registration based on regional standards, but the specific statutory authority in Sint Maarten is pending or incomplete. The CBCS has issued mandates requiring Virtual Asset Service Providers (VASPs) to register, citing AML/CFT concerns and FATF compliance. In June 2024, the CBCS explicitly noted that while the legal framework was being finalized in Curaçao, similar legislation was 'still in progress' for Sint Maarten, yet urged entities to register voluntarily. This 'enforcement without full law' is a hallmark of a Gray-Zone status. Entities operating in Sint Maarten face uncertainty: they are subject to FIU reporting under general AML laws (NORUT) but lack a clear, enacted licensing regime specific to their industry. Previously, in 2023, there was a high-profile political push by Member of Parliament Rolando Brison to designate the Tron (TRX) blockchain as the country's national blockchain and legal tender. This proposal generated significant media attention but ultimately failed to gain legislative traction or Central Bank support. The CBCS has consistently warned against the risks of unregulated crypto assets and opposed the adoption of crypto as legal tender, further muddying the waters with conflicting signals between political initiatives and regulatory prudence. From a tax perspective, Sint Maarten remains attractive for individual retail traders. The jurisdiction does not levy a capital gains tax on personal assets, meaning profits from crypto trading are generally tax-free for individuals. However, practical barriers remain high. Local banks, such as the Windward Islands Bank, maintain strict compliance policies that often result in the blocking of crypto-related transactions. Additionally, a 1% foreign exchange license fee on outgoing transfers adds a friction cost to funding international crypto exchange accounts.
Source Evidence
Primary and secondary sources cited in this analysis
"PB 2025 nr. 18 Landsverordening toezicht virtuele activa dienstverleners (Curaçao)"
"In anticipation of corresponding legislation in Sint Maarten, similar institutions offering their services in or from Sint Maarten are also requested to register with the CBCS."
"Consumers should be aware that providers of virtual currencies are not regulated."
"The taxation in Sint Maarten on cryptocurrencies held by private individuals is nil."
"It would behoove the Central Bank... to inform the public... on its present stance."
Web Sources (3)
Sources discovered via web search grounding
Search queries used (9)
- Sint Maarten crypto tax laws
- Centrale Bank van Curaçao en Sint Maarten crypto warning
- Sint Maarten Tron legal tender status passed
- Sint Maarten cryptocurrency regulation CBCS
- FIU Sint Maarten virtual assets regulation
- "Landsverordening toezicht virtuele activa dienstverleners" Sint Maarten
- Sint Maarten crypto capital gains tax individual
- Sint Maarten National Ordinance on Virtual Asset Service Providers status
- Windward Islands Bank Sint Maarten cryptocurrency policy
https://smn-news.com/index.php/st-maarten-st-martin-news/45496-mandatory-registration-for-virtual-asset-service-providers-payment-service-providers-and-electronic-money-institutions.html
https://www.globalcitizensolutions.com/crypto-tax-haven/
https://summ.com/at/blog/top-crypto-tax-countries