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Run: 4177e092... | Saint Vincent and the Grenadines - Retail Trading Status

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Allowed-Regulated Unknown
Created: 2025-06-26 13:21
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Allowed-Regulated Unknown
Created: 2025-06-26 13:21
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Executive Summary

As of June 2025, Saint Vincent and the Grenadines has transitioned to an "Allowed-Regulated" environment for retail crypto trading. This shift from its previous "Allowed-Unregulated" status (pre-April 2025) is primarily driven by the activation and enforcement of the Virtual Asset Business Act (VABA). The VABA actively regulates Virtual Asset Service Providers (VASPs), and through this oversight, it indirectly regulates retail crypto trading activities within the jurisdiction. The regulatory framework, established by VABA, came into effect on May 31, 2025, with the formal commencement of the VASP registration process on June 2, 2025. Existing entities have until July 31, 2025, to comply with the new regulations.

As of June 2025, Saint Vincent and the Grenadines has transitioned to an "Allowed-Regulated" environment for retail crypto trading. This shift from its previous "Allowed-Unregulated" status (pre-April 2025) is primarily driven by the activation and enforcement of the Virtual Asset Business Act (VABA). The VABA actively regulates Virtual Asset Service Providers (VASPs), and through this oversight, it indirectly regulates retail crypto trading activities within the jurisdiction. The regulatory framework, established by VABA, came into effect on May 31, 2025, with the formal commencement of the VASP registration process on June 2, 2025. Existing entities have until July 31, 2025, to comply with the new regulations.

Key Pillars

  • The cornerstone of Saint Vincent and the Grenadines' retail crypto trading regulation is the Virtual Asset Business Act (VABA).

  • This legislation introduces a comprehensive framework for virtual asset business activities conducted within or from Saint Vincent and the Grenadines.

  • The VABA primarily focuses on regulating Virtual Asset Service Providers (VASPs), which include entities engaged in: Exchange between virtual assets and fiat currencies; Exchange between different types of virtual assets; Transfer of virtual assets, whether or not for value; Safekeeping and administration of virtual assets or instruments enabling control over virtual assets; Participation in or provision of financial services related to an issue or sale of virtual assets.

  • The Financial Services Authority (FSA) is the primary regulatory body responsible for overseeing compliance with the VABA.

  • The FSA, in conjunction with the Financial Intelligence Unit (FIU), monitors compliance with Anti-Money Laundering (AML) and Counter-Terrorist Financing (CFT) requirements, aligning with international standards set by the Financial Action Task Force (FATF).

  • The cornerstone of Saint Vincent and the Grenadines' retail crypto trading regulation is the Virtual Asset Business Act (VABA).

  • This legislation introduces a comprehensive framework for virtual asset business activities conducted within or from Saint Vincent and the Grenadines.

  • The VABA primarily focuses on regulating Virtual Asset Service Providers (VASPs), which include entities engaged in: Exchange between virtual assets and fiat currencies; Exchange between different types of virtual assets; Transfer of virtual assets, whether or not for value; Safekeeping and administration of virtual assets or instruments enabling control over virtual assets; Participation in or provision of financial services related to an issue or sale of virtual assets.

  • The Financial Services Authority (FSA) is the primary regulatory body responsible for overseeing compliance with the VABA.

  • The FSA, in conjunction with the Financial Intelligence Unit (FIU), monitors compliance with Anti-Money Laundering (AML) and Counter-Terrorist Financing (CFT) requirements, aligning with international standards set by the Financial Action Task Force (FATF).

Landmark Laws

Virtual Asset Business Act, 2022 (Act No. 9 of 2022)
- Authority: Enacted by the House of Assembly of Saint Vincent and the Grenadines. The Financial Services Authority (FSA) is the designated regulatory and supervisory body.
- Date: Passed on May 10, 2022. While enacted in 2022, the regulatory framework formally came into effect on May 31, 2025, with the application process for VASP registration commencing on June 2, 2025. Existing entities have until July 31, 2025, to submit their applications for registration.
- Summary: The VABA mandates the registration and supervision of virtual asset businesses, thereby legalizing and regulating cryptocurrency activities. It introduces requirements for capital adequacy, statutory deposits (minimum XCD 100,000 or 25% of client financial obligations, whichever is greater, and USD 1 million in professional indemnity insurance), and the appointment of a Principal Representative for foreign companies. The Act also imposes obligations for registered businesses, including annual audited accounts and adherence to AML/CFT protocols. Non-compliance can lead to significant penalties, including fines, activity restrictions, and license revocation.

Virtual Asset Business Act, 2022 (Act No. 9 of 2022)
- Authority: Enacted by the House of Assembly of Saint Vincent and the Grenadines. The Financial Services Authority (FSA) is the designated regulatory and supervisory body.
- Date: Passed on May 10, 2022. While enacted in 2022, the regulatory framework formally came into effect on May 31, 2025, with the application process for VASP registration commencing on June 2, 2025. Existing entities have until July 31, 2025, to submit their applications for registration.
- Summary: The VABA mandates the registration and supervision of virtual asset businesses, thereby legalizing and regulating cryptocurrency activities. It introduces requirements for capital adequacy, statutory deposits (minimum XCD 100,000 or 25% of client financial obligations, whichever is greater, and USD 1 million in professional indemnity insurance), and the appointment of a Principal Representative for foreign companies. The Act also imposes obligations for registered businesses, including annual audited accounts and adherence to AML/CFT protocols. Non-compliance can lead to significant penalties, including fines, activity restrictions, and license revocation.

Considerations

  • Asset Classification: Based on current interpretations, cryptocurrencies are generally treated as "property" rather than currency in Saint Vincent and the Grenadines. The VABA defines various categories of virtual asset businesses subject to regulation, implicitly classifying the types of virtual assets they handle.

  • Taxation: Saint Vincent and the Grenadines operates a territorial taxation system. Companies are primarily taxed on income generated within the country (corporate income tax of 28-30%), while income earned outside the country is often exempt. Notably, there are no direct income tax, capital gains tax, or value-added tax on cryptocurrency transactions, making it an attractive jurisdiction for crypto investors and blockchain businesses. Capital gains from cryptocurrency trading are generally not taxed. However, if cryptocurrency activities are conducted as a commercial business, the income may be subject to corporate income tax.

  • AML/KYC Requirements: Compliance with Anti-Money Laundering (AML) and Know Your Customer (KYC) policies is mandatory for virtual asset businesses in Saint Vincent and the Grenadines. These policies align with FATF guidelines and require businesses to verify customer identities, monitor for suspicious activity, and report such activities to law enforcement.

  • Asset Classification: Based on current interpretations, cryptocurrencies are generally treated as "property" rather than currency in Saint Vincent and the Grenadines. The VABA defines various categories of virtual asset businesses subject to regulation, implicitly classifying the types of virtual assets they handle.

  • Taxation: Saint Vincent and the Grenadines operates a territorial taxation system. Companies are primarily taxed on income generated within the country (corporate income tax of 28-30%), while income earned outside the country is often exempt. Notably, there are no direct income tax, capital gains tax, or value-added tax on cryptocurrency transactions, making it an attractive jurisdiction for crypto investors and blockchain businesses. Capital gains from cryptocurrency trading are generally not taxed. However, if cryptocurrency activities are conducted as a commercial business, the income may be subject to corporate income tax.

  • AML/KYC Requirements: Compliance with Anti-Money Laundering (AML) and Know Your Customer (KYC) policies is mandatory for virtual asset businesses in Saint Vincent and the Grenadines. These policies align with FATF guidelines and require businesses to verify customer identities, monitor for suspicious activity, and report such activities to law enforcement.

Notes

  • Saint Vincent and the Grenadines is actively working to foster a favorable environment for the development of cryptocurrency projects, aiming to become a fully digital transaction platform.

  • The country has been participating in the Eastern Caribbean Central Bank (ECCB) pilot program to implement a digital version of the Eastern Caribbean dollar, "DCash," as a legal tender, allowing for mobile transfers, withdrawals, and purchases within ECCB member countries.

  • This indicates a broader governmental interest in digital currency adoption and innovation.

  • While the VABA represents a significant step towards regulation, the government continues to support blockchain initiatives.

  • Saint Vincent and the Grenadines is actively working to foster a favorable environment for the development of cryptocurrency projects, aiming to become a fully digital transaction platform.

  • The country has been participating in the Eastern Caribbean Central Bank (ECCB) pilot program to implement a digital version of the Eastern Caribbean dollar, "DCash," as a legal tender, allowing for mobile transfers, withdrawals, and purchases within ECCB member countries.

  • This indicates a broader governmental interest in digital currency adoption and innovation.

  • While the VABA represents a significant step towards regulation, the government continues to support blockchain initiatives.

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Full Analysis Report

Report on Retail_Trading_Status in Saint Vincent and the Grenadines

Date: 2025-06-26

Topic: Retail_Trading_Status

Description: Assess whether individual citizens and residents in the country 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:

Historically, Saint Vincent and the Grenadines (SVG) was known for a relatively hands-off approach to cryptocurrency regulation, making it an attractive location for crypto-related businesses. For individual citizens and residents, this meant that buying, selling, and holding cryptocurrencies was generally permitted without specific crypto-focused laws explicitly governing these activities.

However, the regulatory landscape has been evolving. While previously unregulated, the "Virtual Asset Business Act" (VABA) was reportedly passed in 2022 and further amended or saw significant enforcement changes in 2025. This Act has introduced a registration and licensing regime for Virtual Asset Service Providers (VASPs). This signifies a shift from an unregulated environment to a regulated one, primarily targeting businesses operating in the virtual asset space.

For retail traders, the direct implication is that while their right to trade cryptocurrencies is not prohibited, the platforms they might use, especially those registered or operating in SVG, are now subject to regulatory scrutiny. This includes compliance with Anti-Money Laundering (AML) and Counter-Financing of Terrorism (CFT) laws, as well as Know Your Customer (KYC) requirements. The Financial Services Authority (FSA) of Saint Vincent and the Grenadines and the Financial Intelligence Unit (FIU) are the key regulatory bodies overseeing these aspects.

The government of SVG has generally shown a "cryptocurrency-friendly atmosphere" and is part of the Eastern Caribbean Central Bank (ECCB) initiative piloting a digital version of the Eastern Caribbean dollar called DCash. This project, launched in SVG in 2021, allows residents to use a government-backed digital currency for transactions, indicating an openness to digital financial technologies.

Despite the introduction of the VABA for businesses, direct regulations specifically targeting individual retail crypto trading (beyond the general AML/KYC obligations that would be imposed by regulated VASPs) are not as explicitly detailed in the available information. However, the overall legal framework now acknowledges and seeks to regulate virtual assets. The FSA and FIU have also issued warnings to the public about the risks associated with cryptocurrency investments, urging caution.

Therefore, individual citizens and residents are legally permitted to buy, sell, and hold cryptocurrencies, but this activity is increasingly occurring within a regulated environment due to the VABA's impact on service providers. These providers are mandated to implement KYC/AML procedures, which indirectly affect retail users.

Specific, Relevant Text Excerpts:

  • LegalBison (referring to changes in 2025): "Yes, cryptocurrency activity is legal in Saint Vincent and the Grenadines. Until 2025, crypto business was unregulated in SVG, but the Virtual Asset Business Act that was passed in 2025 has introduced the obligation to apply for a crypto license."
  • LegalBison on VABA's scope: "The cryptocurrency regulation in Saint Vincent and the Grenadines is set in the amended Virtual Asset Business Act of 2025 for the major part. Passed in May 2025 in the House of Assembly of SVG, this Act defines in straightforward terms what is a virtual asset business and what are the requirements to register as one. Among other things, the Act requires crypto projects to comply with the AML-CFT legislation of Saint Vincent and the Grenadines."
  • LegalBison on AML/KYC: "The SVGFIU enforces, for all crypto companies in Saint Vincent and the Grenadines, AML-CFT laws and KYC / due diligence rules that are entirely based on the FATF guidelines."
  • Gofaizen & Sherle (referring to the Virtual Asset Business Act, 2022): "In 2022, SVG passed the Virtual Asset Business Act (VABA), which introduced mandatory registration and supervision of cryptocurrency companies. This makes cryptocurrency fully legal in the country, but virtual asset businesses must comply with strict security, data protection, and financial crime regulations."
  • Gofaizen & Sherle on legality for businesses (implying permissibility for individuals using these businesses): "Is crypto business legal in Saint Vincent and the Grenadines? Yes, cryptocurrency business is legal in Saint Vincent and the Grenadines, but only after obtaining the appropriate license from the Financial Services Commission. Companies must comply with local laws, including AML and KYC requirements, as well as international standards."
  • FastOffshoreLicenses (undated, but contextually recent): "First of all, you can be sure that cryptocurrency is completely legal in SVG." And, "Yes, AML (“anti-money laundering”) and KYC (“know your customer”) policies are mandatory in SVG for businesses that deal with cryptocurrency."
  • SVG FIU Advisory (undated but relevant for general stance): "The Authorities in St. Vincent and the Grenadines are aware of the recent growing international trend of Forex Trading and Cryptocurrency. It is advised however, that there is no regulation in place for Foreign Exchange (Forex) Trading and Cryptocurrency offerings in St. Vincent and the Grenadines. Furthermore, no Forex Trading or Cryptocurrency licenses are issued in St. Vincent and the Grenadines. These are speculative investments with considerable risks to the investor. Members of the public are urged to exercise caution before engaging in any Forex Trading activities or accepting Cryptocurrency offerings." Note: While this advisory states "no regulation" and "no licenses issued", other sources indicate the VABA was subsequently introduced, changing this landscape for businesses.
  • UEEx Technology (April 15, 2025): "Yes, crypto exchanges are legal in Saint Vincent and the Grenadines. The country does not have strict regulations against cryptocurrency trading, and several exchanges operate there."
  • CryptoPenetration (referring to the Virtual Asset Business Act, May 2022): "SVG has implemented the Virtual Asset Business act in May 2022. The St. Vincent Financial Services Authority is regulator, which registers crypto entities under this new legislation."

Direct, Accessible URL Links to Sources:

Report on Retail_Trading_Status in Saint Vincent and the Grenadines

Date: 2025-06-26

Topic: Retail_Trading_Status

Description: Assess whether individual citizens and residents in the country 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:

Historically, Saint Vincent and the Grenadines (SVG) was known for a relatively hands-off approach to cryptocurrency regulation, making it an attractive location for crypto-related businesses. For individual citizens and residents, this meant that buying, selling, and holding cryptocurrencies was generally permitted without specific crypto-focused laws explicitly governing these activities.

However, the regulatory landscape has been evolving. While previously unregulated, the "Virtual Asset Business Act" (VABA) was reportedly passed in 2022 and further amended or saw significant enforcement changes in 2025. This Act has introduced a registration and licensing regime for Virtual Asset Service Providers (VASPs). This signifies a shift from an unregulated environment to a regulated one, primarily targeting businesses operating in the virtual asset space.

For retail traders, the direct implication is that while their right to trade cryptocurrencies is not prohibited, the platforms they might use, especially those registered or operating in SVG, are now subject to regulatory scrutiny. This includes compliance with Anti-Money Laundering (AML) and Counter-Financing of Terrorism (CFT) laws, as well as Know Your Customer (KYC) requirements. The Financial Services Authority (FSA) of Saint Vincent and the Grenadines and the Financial Intelligence Unit (FIU) are the key regulatory bodies overseeing these aspects.

The government of SVG has generally shown a "cryptocurrency-friendly atmosphere" and is part of the Eastern Caribbean Central Bank (ECCB) initiative piloting a digital version of the Eastern Caribbean dollar called DCash. This project, launched in SVG in 2021, allows residents to use a government-backed digital currency for transactions, indicating an openness to digital financial technologies.

Despite the introduction of the VABA for businesses, direct regulations specifically targeting individual retail crypto trading (beyond the general AML/KYC obligations that would be imposed by regulated VASPs) are not as explicitly detailed in the available information. However, the overall legal framework now acknowledges and seeks to regulate virtual assets. The FSA and FIU have also issued warnings to the public about the risks associated with cryptocurrency investments, urging caution.

Therefore, individual citizens and residents are legally permitted to buy, sell, and hold cryptocurrencies, but this activity is increasingly occurring within a regulated environment due to the VABA's impact on service providers. These providers are mandated to implement KYC/AML procedures, which indirectly affect retail users.

Specific, Relevant Text Excerpts:

  • LegalBison (referring to changes in 2025): "Yes, cryptocurrency activity is legal in Saint Vincent and the Grenadines. Until 2025, crypto business was unregulated in SVG, but the Virtual Asset Business Act that was passed in 2025 has introduced the obligation to apply for a crypto license."
  • LegalBison on VABA's scope: "The cryptocurrency regulation in Saint Vincent and the Grenadines is set in the amended Virtual Asset Business Act of 2025 for the major part. Passed in May 2025 in the House of Assembly of SVG, this Act defines in straightforward terms what is a virtual asset business and what are the requirements to register as one. Among other things, the Act requires crypto projects to comply with the AML-CFT legislation of Saint Vincent and the Grenadines."
  • LegalBison on AML/KYC: "The SVGFIU enforces, for all crypto companies in Saint Vincent and the Grenadines, AML-CFT laws and KYC / due diligence rules that are entirely based on the FATF guidelines."
  • Gofaizen & Sherle (referring to the Virtual Asset Business Act, 2022): "In 2022, SVG passed the Virtual Asset Business Act (VABA), which introduced mandatory registration and supervision of cryptocurrency companies. This makes cryptocurrency fully legal in the country, but virtual asset businesses must comply with strict security, data protection, and financial crime regulations."
  • Gofaizen & Sherle on legality for businesses (implying permissibility for individuals using these businesses): "Is crypto business legal in Saint Vincent and the Grenadines? Yes, cryptocurrency business is legal in Saint Vincent and the Grenadines, but only after obtaining the appropriate license from the Financial Services Commission. Companies must comply with local laws, including AML and KYC requirements, as well as international standards."
  • FastOffshoreLicenses (undated, but contextually recent): "First of all, you can be sure that cryptocurrency is completely legal in SVG." And, "Yes, AML (“anti-money laundering”) and KYC (“know your customer”) policies are mandatory in SVG for businesses that deal with cryptocurrency."
  • SVG FIU Advisory (undated but relevant for general stance): "The Authorities in St. Vincent and the Grenadines are aware of the recent growing international trend of Forex Trading and Cryptocurrency. It is advised however, that there is no regulation in place for Foreign Exchange (Forex) Trading and Cryptocurrency offerings in St. Vincent and the Grenadines. Furthermore, no Forex Trading or Cryptocurrency licenses are issued in St. Vincent and the Grenadines. These are speculative investments with considerable risks to the investor. Members of the public are urged to exercise caution before engaging in any Forex Trading activities or accepting Cryptocurrency offerings." Note: While this advisory states "no regulation" and "no licenses issued", other sources indicate the VABA was subsequently introduced, changing this landscape for businesses.
  • UEEx Technology (April 15, 2025): "Yes, crypto exchanges are legal in Saint Vincent and the Grenadines. The country does not have strict regulations against cryptocurrency trading, and several exchanges operate there."
  • CryptoPenetration (referring to the Virtual Asset Business Act, May 2022): "SVG has implemented the Virtual Asset Business act in May 2022. The St. Vincent Financial Services Authority is regulator, which registers crypto entities under this new legislation."

Direct, Accessible URL Links to Sources: