Edit Analysis - Sint Maarten (Dutch part)

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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.

Bullet 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

Complete markdown report for this analysis

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.

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Edit: Sint Maarten (Dutch part)

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