Bonaire, Sint Eustatius and Saba

{
  "analysis_text": "The regulatory status of cryptocurrency in Bonaire, Sint Eustatius, and Saba (the BES islands) is currently best classified as **Allowed-UnRegulated**. As special municipalities of the Netherlands, the islands fall under the supervision of the Dutch Central Bank (DNB) and the Dutch Authority for the Financial Markets (AFM). However, the legal framework in the BES islands is distinct from that of the European Netherlands. While the European Netherlands has implemented strict VASP registration requirements under the Wwft (implementing AMLD5) and is adopting MiCA, these regimes do not automatically extend to the BES islands, which hold Overseas Country and Territory (OCT) status.\n\nThe primary financial regulations in force are the *Wet financi\u00eble markten BES* (Wfm BES) and the *Wet ter voorkoming van witwassen en financieren van terrorisme BES* (Wwft BES). Current assessments, including those by the FATF and the Dutch government, indicate that while traditional financial institutions in BES are subject to AML/CFT rules, the specific legal provisions designating crypto service providers (VASPs) as \u0027obliged entities\u0027 requiring registration are still in the drafting phase. Consequently, there is no active public register of licensed BES-based crypto exchanges comparable to the DNB register for the European Netherlands.\n\nDespite the lack of a formal licensing regime, the DNB and AFM actively monitor the sector. The DNB\u0027s website for the Caribbean Netherlands includes a section for \u0027Crypto service providers,\u0027 suggesting that supervision is a priority and that the regulatory gap is likely to be closed soon. Financial institutions operating in BES are already required to treat crypto assets as high-risk factors in their customer due diligence processes under the general Wwft BES obligations.\n\nRetail traders in the BES islands can legally buy, sell, and hold cryptocurrencies. However, they typically rely on international platforms or those registered in the European Netherlands, as there are no local regulated exchanges. The official currency of the islands is the US Dollar, and DNB is working to ensure the stability of the payment system (including cash access), but crypto is not considered legal tender. Investors should be aware that they do not enjoy the same consumer protections (e.g., under MiCA) that apply within the European Union.",
  "confidence_level": "High",
  "executive_summary": "Retail crypto trading is legal in Bonaire, Sint Eustatius, and Saba (BES), but the specific regulatory framework for crypto service providers is not yet fully in force. While the Dutch Central Bank (DNB) and the Authority for the Financial Markets (AFM) supervise the financial sector under the Wfm BES and Wwft BES, the specific registration requirements for Virtual Asset Service Providers (VASPs) applicable in the European Netherlands have not yet been fully extended to the BES islands. Legislation to bring BES crypto regulation in line with FATF standards is currently in the drafting phase.",
  "grounding_urls": [
    {
      "resolved_url": "https://www.fatf-gafi.org/content/dam/fatf-gafi/fur/Netherlands-Follow-Up-Report-2025.pdf.coredownload.inline.pdf",
      "title": "fatf-gafi.org",
      "url": "https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQHSVKQ6rcQawLNgPqRMca_JoHA3LzmFskKsKasZ7U2DtedO1A2gWiFuzhYx3tehvAk-QofCxRHHB0Zk_NxXFpF7-bIaWrlx9RJ06rnEZK_2ScnVoY5PauqmTOPwmqqTJCZ63A9lIoYL4Z9QyTiRWBTsqSexFnyLRQxEh4Hbt1vhS6Ex0TmlHqNKZ3uCWBvxFiNG53cgzfTqYi6yictgyiank4fLPNSxko_veXGU"
    },
    {
      "resolved_url": "https://www.afm.nl/en/sector/caribisch-nederland/overzicht-wet--en-regelgeving-caribisch-nederland",
      "title": "afm.nl",
      "url": "https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQERzrg7hVK0_K2Jx9RLqIo95LOBP9rliWXZ6-BH6SLKn7bYjBmcfRdN1IX0pEcwvMZB1TZLENZ59WMJv866uFWwwKvVs9C8fWU35jYblfg008cMj8ydwUVhqfPdXcbXEKFVD8pvqIPetVIXc4P7VDhO1xLSBG-1LvjRp47MrJWVZwXazLKXtAG9rBMPG5go3DMp0nkWZsXhn4L1RHx4"
    },
    {
      "resolved_url": "https://coinmarketcap.com/legal-tender-countries/",
      "title": "coinmarketcap.com",
      "url": "https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQHIk4h4opzVBOBd_DyIgU121d6smaLM1Po20xjs4ovpBOzRZ-1LaNjgzOqP3D4BEnBRndN9BAQ1QqU8MJoNBVD2Xjkcpi_5XTQqUi0qU-tFN6O0p6eeFjZovbQPXuQFT4DY6m4I5dmitG6QC9Y="
    },
    {
      "resolved_url": "https://www.eerstekamer.nl/overig/20220824/anti_money_laundering_and_counter/document3/f=/vlw4gfe1ldkg_opgemaakt.pdf",
      "title": "eerstekamer.nl",
      "url": "https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQGzr9UF_i_GVSZFchz7xy837TCpexJ79p5lGg3vtAnBZIkx6ehm-e0F_ypGJVuvQcWE8OESH_jshZCwzSnuHniQ322Wnj5qrhogj65wvei-5FArTdQg8_T_y2NzxrQ6-pn3g0Vra664AAz6HDdNY-tImKrstc3M2hhRxALta9p7p30-qXRjELurgP51tkdrqXNmcFVAbF_Ykc8OnD1ZXQ2iMkB2W5rhKjBupGAUlsKP"
    },
    {
      "resolved_url": "https://www.unodc.org/cld/uploads/res//treaties/strategies/netherlands/nld0004s_html/ML_Action_Plan_2019.pdf",
      "title": "unodc.org",
      "url": "https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQGF3tAZb2Usdn4bnmaMie9sp0bUJOS9mNMlQvCzaejncYRZnFxC_efdvl5BT7pIK5Mawy1TNpx4V_YCw4nXEM4D0muB6rloDyXpF2Nmj0dapsghNrE6Tr2pX1lJ3G4hKZWRqTGNjZ6XAqVOwWVSNAjgPEMiYT9zFE05u79XUsueGeikgQtFtyB5a7qY6L9TqavbjJ19umxYYBMxu_q42l1MWOHolG3UEQ=="
    }
  ],
  "status": "Allowed-UnRegulated",
  "structured_data": {
    "confidence_level": "High",
    "detailed_analysis": "The regulatory status of cryptocurrency in Bonaire, Sint Eustatius, and Saba (the BES islands) is currently best classified as **Allowed-UnRegulated**. As special municipalities of the Netherlands, the islands fall under the supervision of the Dutch Central Bank (DNB) and the Dutch Authority for the Financial Markets (AFM). However, the legal framework in the BES islands is distinct from that of the European Netherlands. While the European Netherlands has implemented strict VASP registration requirements under the Wwft (implementing AMLD5) and is adopting MiCA, these regimes do not automatically extend to the BES islands, which hold Overseas Country and Territory (OCT) status.\n\nThe primary financial regulations in force are the *Wet financi\u00eble markten BES* (Wfm BES) and the *Wet ter voorkoming van witwassen en financieren van terrorisme BES* (Wwft BES). Current assessments, including those by the FATF and the Dutch government, indicate that while traditional financial institutions in BES are subject to AML/CFT rules, the specific legal provisions designating crypto service providers (VASPs) as \u0027obliged entities\u0027 requiring registration are still in the drafting phase. Consequently, there is no active public register of licensed BES-based crypto exchanges comparable to the DNB register for the European Netherlands.\n\nDespite the lack of a formal licensing regime, the DNB and AFM actively monitor the sector. The DNB\u0027s website for the Caribbean Netherlands includes a section for \u0027Crypto service providers,\u0027 suggesting that supervision is a priority and that the regulatory gap is likely to be closed soon. Financial institutions operating in BES are already required to treat crypto assets as high-risk factors in their customer due diligence processes under the general Wwft BES obligations.\n\nRetail traders in the BES islands can legally buy, sell, and hold cryptocurrencies. However, they typically rely on international platforms or those registered in the European Netherlands, as there are no local regulated exchanges. The official currency of the islands is the US Dollar, and DNB is working to ensure the stability of the payment system (including cash access), but crypto is not considered legal tender. Investors should be aware that they do not enjoy the same consumer protections (e.g., under MiCA) that apply within the European Union.",
    "executive_summary": "Retail crypto trading is legal in Bonaire, Sint Eustatius, and Saba (BES), but the specific regulatory framework for crypto service providers is not yet fully in force. While the Dutch Central Bank (DNB) and the Authority for the Financial Markets (AFM) supervise the financial sector under the Wfm BES and Wwft BES, the specific registration requirements for Virtual Asset Service Providers (VASPs) applicable in the European Netherlands have not yet been fully extended to the BES islands. Legislation to bring BES crypto regulation in line with FATF standards is currently in the drafting phase.",
    "important_considerations": [
      "The US Dollar (USD) is the official currency of the BES islands, not the Euro.",
      "EU regulations like MiCA do not automatically apply to BES as they are Overseas Countries and Territories (OCTs), not Outermost Regions.",
      "The FATF has identified gaps in VASP regulation for BES compared to the European Netherlands, noting that legislation is in the drafting phase.",
      "DNB lists \u0027Crypto service providers\u0027 as a sector on its Caribbean Netherlands website, indicating intent to supervise or pending implementation.",
      "Local banks may be hesitant to process crypto transactions due to de-risking and AML concerns."
    ],
    "key_regulatory_pillars": [
      "De Nederlandsche Bank (DNB) - Prudential supervision of financial institutions in BES",
      "Authority for the Financial Markets (AFM) - Conduct of business supervision in BES",
      "Wwft BES (Anti-Money Laundering and Anti-Terrorist Financing Act BES) - Primary AML framework",
      "Wfm BES (Financial Markets Act BES) - General financial supervision framework"
    ],
    "landmark_legislation": [
      {
        "date_enacted": "2012-07-01",
        "identifier": "Wwft BES",
        "name": "Wet ter voorkoming van witwassen en financieren van terrorisme BES (Wwft BES)",
        "summary": "The primary AML/CFT legislation for the BES islands. While it covers traditional financial institutions, specific amendments to explicitly mandate VASP registration (similar to the European Netherlands) are reported to be in the drafting phase.",
        "url": "https://wetten.overheid.nl/BWBR0028070/"
      },
      {
        "date_enacted": "2012-07-01",
        "identifier": "Wfm BES",
        "name": "Wet financi\u00eble markten BES (Wfm BES)",
        "summary": "Regulates the financial markets in Bonaire, Sint Eustatius, and Saba. It establishes the supervisory roles of DNB and AFM but does not currently contain specific provisions for crypto asset licensing.",
        "url": "https://wetten.overheid.nl/BWBR0030883/"
      }
    ],
    "notes_and_comments": "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.",
    "primary_sources": [
      {
        "date": "2024-01-01",
        "key_quote": "We are responsible for the supervision of financial institutions in Bonaire, Sint Eustatius and Saba. In so doing, we collaborate with the AFM.",
        "source_type": "regulator",
        "title": "DNB Supervision in Bonaire, Sint Eustatius and Saba",
        "url": "https://www.dnb.nl/en/sector-information/supervision-sectors/banks/supervision-in-bonaire-sint-eustatius-and-saba/"
      },
      {
        "date": "2024-01-01",
        "key_quote": "The AFM and DNB perform their supervision on the basis of the Financial Markets (BES Islands) Act (Wet financi\u00eble markten BES - Wfm BES).",
        "source_type": "regulator",
        "title": "AFM Laws and regulations overview - Caribbean Netherlands",
        "url": "https://www.afm.nl/en/sector/cn/laws-regulations"
      },
      {
        "date": "2024-05-01",
        "key_quote": "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.",
        "source_type": "official_government",
        "title": "FATF Follow-Up Report The Netherlands 2024",
        "url": "https://www.fatf-gafi.org/content/dam/fatf-gafi/fur/Netherlands-FUR-2024.pdf.coredownload.inline.pdf"
      },
      {
        "date": "2022-08-24",
        "key_quote": "Although VASPs have been recently regulated in the Netherlands, not all VASP activities... are currently within scope of Dutch legislation [referring to BES].",
        "source_type": "official_government",
        "title": "Eerste Kamer - National Risk Assessment BES 2021",
        "url": "https://www.eerstekamer.nl/bijlage/20220824/national_risk_assessment_witwassen/document3/f=/vlwu662w6oz1.pdf"
      }
    ],
    "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."
    ],
    "secondary_sources": [
      {
        "date": "2024-01-01",
        "key_quote": "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.",
        "source_type": "analysis",
        "title": "CMS Expert Guide to Crypto Regulation in The Netherlands",
        "url": "https://cms.law/en/int/expert-guides/cms-expert-guide-to-crypto-regulation/netherlands"
      }
    ],
    "status": "Allowed-UnRegulated"
  }
}