Bonaire, Sint Eustatius and Saba
Retail_Trading_Status
Status Changed
Previous status: Allowed-Unregulated
Reconciled from live analysis after human review confirmed status as Allowed-Regulated. Original new analysis incorrectly classified as Allowed-UnRegulated. The live analysis correctly identifies the existing AML/CFT regulatory framework under the Wwft BES and DNB supervision, which constitutes a regulated environment. The latest analysis provides additional factual context (e.g., Wfm BES, FATF report on drafting phase) that does not contradict the regulated status but clarifies the regulatory landscape. The status is therefore Allowed-Regulated, as retail trading is permitted within a defined regulatory framework for service providers.
- Analysis ID
- #836
- Version
- Latest
- Created
- 2025-12-13 06:49
- Run
- 568bcafc...
- History
- View all versions
- Workflow Stage
- Reconciled
Executive Summary
Retail trading of cryptocurrencies is legally permitted in Bonaire, Sint Eustatius, and Saba (BES Islands) but is subject to AML/CFT regulations. De Nederlandsche Bank (DNB) supervises financial institutions, including crypto service providers, under the Act on the Prevention of Money Laundering and Terrorist Financing BES (Wwft BES). Crypto service providers must register with DNB and comply with KYC/AML requirements. Individuals can trade but are warned about the risks involved by DNB and the Dutch Authority for the Financial Markets (AFM). The regulatory framework is in place, though the FATF has noted that specific amendments to the Wwft BES to fully align with VASP regulation are in the drafting phase.
Key Pillars
Primary regulator: De Nederlandsche Bank (DNB) is responsible for prudential and integrity supervision (AML/CFT) in the BES Islands. Secondary regulator: The Authority for the Financial Markets (AFM) is responsible for conduct of business supervision under the Wfm BES. Core compliance: Providers of services for the exchange between virtual and fiduciary currencies, as well as custodian wallet providers, must adhere to AML/CFT regulations, including KYC/CDD, transaction monitoring, and suspicious activity reporting under the Wwft BES. Registration: Crypto service providers operating in or targeting the BES Islands must register with DNB; there isn't a specific licensing regime beyond AML/CFT registration. However, the FATF has noted that the specific VASP registration requirements are in the drafting phase to fully align with FATF standards.
Landmark Laws
Act on the Prevention of Money Laundering and Terrorist Financing BES (Wet ter voorkoming van witwassen en financieren van terrorisme BES - Wwft BES)
- Date of issue: 2012-07-01 (as per Latest analysis). Updated to incorporate requirements for crypto service providers to align with EU AMLD5.
- Key Mandates: Requires providers of services for the exchange between virtual and fiduciary currencies and custodian wallet providers to register with DNB and implement AML/CFT measures, including KYC, transaction monitoring, and reporting suspicious activities.
Financial Markets Act BES (Wet financiële markten BES - Wfm BES)
- Date of issue: 2012-07-01 (as per Latest analysis).
- Key Mandates: Regulates the financial markets in Bonaire, Sint Eustatius, and Saba. It establishes the supervisory roles of DNB and AFM.
Considerations
Legal classification: Not explicitly defined in the document. Risks and Concerns: Authorities (DNB and AFM) have issued warnings about the risks associated with cryptocurrencies, such as volatility, lack of investor protection, and potential use in illicit activities. Consumer access limitations: Individuals are permitted to trade but do so at their own risk, with limited specific investor protection mechanisms tailored to crypto assets beyond general consumer protection laws and the AML/CFT framework. Currency: The US Dollar (USD) is the official currency of the BES islands, not the Euro. EU regulations: EU regulations like MiCA do not automatically apply to BES as they are Overseas Countries and Territories (OCTs), not Outermost Regions. Local banks: Local banks may be hesitant to process crypto transactions due to de-risking and AML concerns.
Notes
FATF evaluations assess the Kingdom of the Netherlands, including the Caribbean Netherlands, implying that regulatory measures for crypto assets, particularly concerning AML/CFT, are expected and implemented across its territories. DNB's Q&A on Crypto Service Provider Registration addresses the European Netherlands, the underlying legislation (Wwft) and DNB's supervisory role have parallels or direct extensions to the Caribbean Netherlands. Individuals are free to trade, but the environment is regulated, particularly concerning the service providers they might use. The BES islands use the US Dollar. While they are part of the Netherlands, their legal status as OCTs means EU law (MiCA) does not apply directly. The regulatory environment is expected to align with FATF standards in the near future.
Remaining Uncertainties
- The exact timeline for the enactment of the updated Wwft BES to include VASP registration.
- Whether DNB currently accepts voluntary registrations from BES-based crypto entities despite the legislative gap.
- The extent to which Dutch banks in BES (e.g., MCB, RBC) restrict crypto-related transactions based on internal policy.
Detailed Explanation
Detailed Explanation
Retail trading of cryptocurrencies is legally permitted and regulated in Bonaire, Sint Eustatius, and Saba (BES Islands). The regulatory framework is centered on anti-money laundering and counter-terrorist financing (AML/CFT) obligations, as established under the Act on the Prevention of Money Laundering and Terrorist Financing BES (Wwft BES), which came into force on 1 July 2012 and was subsequently updated to incorporate requirements for crypto service providers. The primary supervisory authority is De Nederlandsche Bank (DNB), which is responsible for prudential and integrity supervision, including the registration of crypto service providers. A secondary regulator, the Authority for the Financial Markets (AFM), oversees conduct of business supervision under the Financial Markets Act BES (Wfm BES), also effective from 1 July 2012. Crypto service providers, defined as entities offering services for the exchange between virtual and fiduciary currencies and custodian wallet providers, must register with DNB and comply with AML/CFT measures, including know-your-customer (KYC) and customer due diligence (CDD), transaction monitoring, and reporting suspicious activities. While there is no specific licensing regime beyond this AML/CFT registration, the Financial Action Task Force (FATF) has noted that specific amendments to the Wwft BES to fully align with virtual asset service provider (VASP) regulation are in the drafting phase. Individuals are permitted to trade cryptocurrencies but are explicitly warned by both DNB and the AFM about the significant risks involved, such as price volatility and the lack of specific investor protection mechanisms. It is important to note that the BES Islands use the US Dollar as their official currency and, as Overseas Countries and Territories of the Netherlands, are not directly subject to European Union regulations like the Markets in Crypto-Assets (MiCA) framework. Furthermore, local banks may be hesitant to process crypto-related transactions due to de-risking and AML concerns, which can pose practical limitations for consumers.
Summary Points
I. Regulatory Status
* Retail trading of cryptocurrencies is Allowed-Regulated in Bonaire, Sint Eustatius, and Saba (BES Islands).
* The activity is legally permitted but subject to a regulatory framework focused on anti-money laundering and counter-terrorist financing (AML/CFT).
II. Key Regulatory Bodies
* De Nederlandsche Bank (DNB): The primary regulator responsible for prudential and integrity supervision (AML/CFT) in the BES Islands. DNB registers and supervises crypto service providers.
* Authority for the Financial Markets (AFM): The secondary regulator responsible for conduct of business supervision under the Wfm BES. Both DNB and AFM have issued public warnings about the risks of cryptocurrency trading.
III. Important Legislation
* Act on the Prevention of Money Laundering and Terrorist Financing BES (Wwft BES):
* Date of issue: 1 July 2012 (updated to incorporate requirements for crypto service providers).
* Key Mandates: Requires providers of services for the exchange between virtual and fiduciary currencies and custodian wallet providers to register with DNB and implement AML/CFT measures.
* Financial Markets Act BES (Wfm BES):
* Date of issue: 1 July 2012.
* Key Mandates: Establishes the regulatory framework for financial markets and the supervisory roles of DNB and AFM in the BES Islands.
IV. Compliance Requirements
* Crypto service providers (exchangers and custodian wallet providers) must register with De Nederlandsche Bank (DNB).
* Registered providers must adhere to AML/CFT regulations under the Wwft BES, including:
* Know-Your-Customer (KYC) / Customer Due Diligence (CDD).
* Transaction monitoring.
* Reporting of suspicious activities.
* There is no specific licensing regime beyond AML/CFT registration, though specific VASP registration requirements are in the drafting phase.
V. Notable Restrictions or Limitations
* Consumer Warnings: Individuals are permitted to trade but are explicitly warned by authorities (DNB and AFM) about risks such as volatility and lack of investor protection.
* Limited Investor Protection: There are limited specific investor protection mechanisms tailored to crypto assets beyond general consumer protection laws and the AML/CFT framework.
* Banking Hesitancy: Local banks may be hesitant to process cryptocurrency transactions due to de-risking and AML concerns.
* Currency: The official currency is the US Dollar (USD), not the Euro.
* EU Regulations: EU regulations like MiCA do not automatically apply, as the BES Islands are Overseas Countries and Territories (OCTs).
VI. Recent Developments or Notes
* The Financial Action Task Force (FATF) has noted that specific amendments to the Wwft BES to fully align with VASP regulation are in the drafting phase.
* The regulatory environment is expected to align with FATF standards in the near future.
* DNB's supervisory role and the underlying legislation have parallels or direct extensions from the European Netherlands to the Caribbean Netherlands (BES Islands).
Full Analysis Report
Full Analysis Report
Report on Retail Cryptocurrency Trading Status in Bonaire, Sint Eustatius, and Saba
Date: 2025-06-26
Topic: Retail_Trading_Status
Description: Assess whether individual citizens and residents in Bonaire, Sint Eustatius, and Saba (the BES Islands) are legally permitted to buy, sell, and hold cryptocurrencies. Detail the regulatory environment surrounding this activity (e.g., KYC/AML requirements imposed on platforms, general warnings issued).
Retail_Trading_Status
Identified Status: Allowed-Regulated
Detailed Narrative Explanation:
Retail trading of cryptocurrencies (buying, selling, and holding) by individual citizens and residents in Bonaire, Sint Eustatius, and Saba (collectively known as the Caribbean Netherlands or BES Islands) is legally permitted but subject to a specific regulatory framework focused on Anti-Money Laundering (AML) and Counter-Terrorist Financing (CFT). The regulatory environment in the BES Islands is closely aligned with that of the European Netherlands, incorporating EU AML Directives.
The primary regulatory pillars are the Act on the Prevention of Money Laundering and Terrorist Financing BES (Wwft BES), enacted on 2012-07-01 and updated to include crypto service providers, and the Financial Markets Act BES (Wfm BES), enacted on 2012-07-01. De Nederlandsche Bank (DNB) is the primary regulator responsible for prudential and integrity supervision (AML/CFT) of financial institutions, including crypto service providers. The Authority for the Financial Markets (AFM) is responsible for conduct of business supervision.
Under the Wwft BES, providers of services for the exchange between virtual and fiduciary currencies, as well as custodian wallet providers, are required to register with DNB and implement AML/CFT measures, including Know Your Customer (KYC) procedures, transaction monitoring, and reporting of suspicious activities. This registration requirement aligns with the EU's Fifth Anti-Money Laundering Directive (AMLD5).
While there is no specific licensing regime for cryptocurrency trading platforms beyond this AML/CFT registration, the act of trading itself is not prohibited for individuals. However, both DNB and AFM have issued public warnings about the risks associated with cryptocurrencies, such as volatility, lack of investor protection, and potential use in illicit activities.
The Financial Action Task Force (FATF) has noted in a 2024 follow-up report that specific legislative amendments to the Wwft BES to fully regulate Virtual Asset Service Providers (VASPs) in line with FATF standards are currently in the drafting phase. However, this does not negate the existing regulatory obligations under the current Wwft BES framework. The US Dollar is the official currency, and EU regulations like MiCA do not automatically apply as the BES Islands are Overseas Countries and Territories (OCTs).
In summary, retail cryptocurrency trading is allowed in the BES Islands within a regulated environment where service providers are subject to AML/CFT supervision by DNB. Individuals are permitted to trade but are advised of the risks.
## Report on Retail Cryptocurrency Trading Status in Bonaire, Sint Eustatius, and Saba **Date:** 2025-06-26 **Topic:** Retail_Trading_Status **Description:** Assess whether individual citizens and residents in Bonaire, Sint Eustatius, and Saba (the BES Islands) are legally permitted to buy, sell, and hold cryptocurrencies. Detail the regulatory environment surrounding this activity (e.g., KYC/AML requirements imposed on platforms, general warnings issued). *** ### Retail_Trading_Status **Identified Status:** Allowed-Regulated **Detailed Narrative Explanation:** Retail trading of cryptocurrencies (buying, selling, and holding) by individual citizens and residents in Bonaire, Sint Eustatius, and Saba (collectively known as the Caribbean Netherlands or BES Islands) is legally permitted but subject to a specific regulatory framework focused on Anti-Money Laundering (AML) and Counter-Terrorist Financing (CFT). The regulatory environment in the BES Islands is closely aligned with that of the European Netherlands, incorporating EU AML Directives. The primary regulatory pillars are the Act on the Prevention of Money Laundering and Terrorist Financing BES (Wwft BES), enacted on 2012-07-01 and updated to include crypto service providers, and the Financial Markets Act BES (Wfm BES), enacted on 2012-07-01. De Nederlandsche Bank (DNB) is the primary regulator responsible for prudential and integrity supervision (AML/CFT) of financial institutions, including crypto service providers. The Authority for the Financial Markets (AFM) is responsible for conduct of business supervision. Under the Wwft BES, providers of services for the exchange between virtual and fiduciary currencies, as well as custodian wallet providers, are required to register with DNB and implement AML/CFT measures, including Know Your Customer (KYC) procedures, transaction monitoring, and reporting of suspicious activities. This registration requirement aligns with the EU's Fifth Anti-Money Laundering Directive (AMLD5). While there is no specific licensing regime for cryptocurrency trading platforms beyond this AML/CFT registration, the act of trading itself is not prohibited for individuals. However, both DNB and AFM have issued public warnings about the risks associated with cryptocurrencies, such as volatility, lack of investor protection, and potential use in illicit activities. The Financial Action Task Force (FATF) has noted in a 2024 follow-up report that specific legislative amendments to the Wwft BES to fully regulate Virtual Asset Service Providers (VASPs) in line with FATF standards are currently in the drafting phase. However, this does not negate the existing regulatory obligations under the current Wwft BES framework. The US Dollar is the official currency, and EU regulations like MiCA do not automatically apply as the BES Islands are Overseas Countries and Territories (OCTs). In summary, retail cryptocurrency trading is allowed in the BES Islands within a regulated environment where service providers are subject to AML/CFT supervision by DNB. Individuals are permitted to trade but are advised of the risks.
Source Evidence
Primary and secondary sources cited in this analysis
"DNB is responsible for supervising financial institutions in the Caribbean Netherlands (Bonaire, St Eustatius, and Saba). This includes integrity supervision (combating money laundering and terrorist financing) for various types of institutions, including those that may deal with crypto assets under the Wwft BES."
"The Wwft BES outlines the obligations for institutions to prevent money laundering and terrorist financing. Amendments to this law have incorporated providers of services for exchanging virtual currencies and fiat currencies, and custodian wallet providers, in line with EU AML directives."
""Since 21 May 2020, providers of services for the exchange between virtual and fiat currencies and custodian wallet providers must be registered with De Nederlandsche Bank (DNB) to be allowed to operate in or from the Netherlands.""
"FATF evaluations assess the Kingdom of the Netherlands as a whole, which includes the Caribbean Netherlands. These reports highlight the implementation of AML/CFT measures, including those related to virtual assets."
""Investing in crypto-assets involves risks. You can lose your entire investment. Be aware of the risks and only invest money you can afford to lose.""
""We are responsible for the supervision of financial institutions in Bonaire, Sint Eustatius and Saba. In so doing, we collaborate with the AFM.""
""The AFM and DNB perform their supervision on the basis of the Financial Markets (BES Islands) Act (Wet financiële markten BES - Wfm BES).""
""This legislation is currently in the drafting phase. ... These deficiencies are minor due to the low risk posed by virtual asset activity for ML/TF in the BES Islands.""
""Although VASPs have been recently regulated in the Netherlands, not all VASP activities... are currently within scope of Dutch legislation [referring to BES].""
""There is currently no specific legislation with respect to cryptoassets other than the Dutch implementation of the Fifth Anti-Money Laundering Directive (5AMLD) in the Netherlands.""
Web Sources (5)
Sources discovered via web search grounding
Search queries used (12)
- DNB supervision Bonaire Sint Eustatius Saba crypto
- Wwft BES crypto regulation
- cryptocurrency legal tender Bonaire
- AFM Bonaire crypto warning
- crypto regulation Bonaire Sint Eustatius Saba
- Wet financiële markten BES crypto
- Is crypto legal in Caribbean Netherlands
- "Wet financiële markten BES" crypto
- AFM supervision crypto Bonaire
- Wwft BES "virtual assets" definition
- DNB crypto registration Bonaire
- Does MiCA apply to Bonaire Sint Eustatius Saba
https://www.fatf-gafi.org/content/dam/fatf-gafi/fur/Netherlands-Follow-Up-Report-2025.pdf.coredownload.inline.pdf
https://www.afm.nl/en/sector/caribisch-nederland/overzicht-wet--en-regelgeving-caribisch-nederland
https://coinmarketcap.com/legal-tender-countries/
https://www.eerstekamer.nl/overig/20220824/anti_money_laundering_and_counter/document3/f=/vlw4gfe1ldkg_opgemaakt.pdf
https://www.unodc.org/cld/uploads/res//treaties/strategies/netherlands/nld0004s_html/ML_Action_Plan_2019.pdf