Aruba

{
  "analysis_text": "Aruba has established a formal regulatory environment for cryptocurrencies, transitioning from a \u0027buyer beware\u0027 approach to a supervised regime. Effective September 8, 2021, the Centrale Bank van Aruba (CBA) brought Virtual Asset Service Providers (VASPs) under its supervisory umbrella by amending the \u0027State Ordinance for the Prevention and Combating of Money Laundering and Terrorist Financing\u0027 (AML/CFT State Ordinance). This amendment classifies VASPs as Designated Non-Financial Service Providers (DNFBPs), requiring them to register with the CBA and implement robust AML/KYC protocols.\n\nThe regulatory framework explicitly prohibits any natural or legal person from professionally engaging in the exchange of virtual currencies (fiat-to-crypto or crypto-to-crypto), providing custodian wallets, or facilitating transfers in or from Aruba without registration. A grace period was provided until December 8, 2021, after which unregistered operation became a violation of Article 50 of the State Ordinance, subject to enforcement actions. This move aligns Aruba with FATF Recommendation 15 regarding new technologies.\n\nDespite the existence of this registration regime, the practical environment for retail traders remains challenging. The CBA continues to issue strong public warnings, such as the June 2023 notice, highlighting that crypto assets themselves are \u0027largely unregulated\u0027 (referring to the lack of prudential and consumer protection standards compared to traditional banking products) and highly volatile. The CBA has specifically warned about fraudulent schemes on social media that misuse the logos of reputable Aruban banks to feign legitimacy.\n\nFurthermore, the integration of crypto with the local banking sector is poor. Reports and anecdotal evidence indicate that major Aruban banks, driven by strict compliance obligations and de-risking strategies, often refuse to process transactions related to cryptocurrency exchanges. Consequently, while it is legally permissible for residents to trade, they often must rely on international payment processors or foreign accounts to facilitate funding, as local infrastructure remains hostile to the asset class.",
  "confidence_level": "High",
  "executive_summary": "Retail cryptocurrency trading is legally permitted in Aruba, and the sector is subject to a specific regulatory framework for anti-money laundering (AML) compliance. Since September 2021, the Centrale Bank van Aruba (CBA) has supervised Virtual Asset Service Providers (VASPs), requiring them to register as \u0027designated non-financial service providers.\u0027 Despite this legal framework, the CBA frequently issues warnings regarding the risks of crypto assets, and local commercial banks remain highly risk-averse, often blocking crypto-related transactions.",
  "grounding_urls": [
    {
      "resolved_url": "https://www.cbaruba.org/readBlob.do?id=11062",
      "title": "cbaruba.org",
      "url": "https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQGg5KeDx4BBJF44Thm7olZxG1HZJmEh2-SEWt_FFxZ0U_f2ugV28p3HNVkg4erT2hF1V5zRkKBabvswqjrUpZBKrA7cYCwpiprATQfs1MVgKNRYQ0-Wz2I14y4pWaYP44UFJ8KflqTN"
    },
    {
      "resolved_url": "https://freemanlaw.com/cryptocurrency/aruba/",
      "title": "freemanlaw.com",
      "url": "https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQFjFM8yoiLcfyCuFKiMwGuMGRXsv6KHCdgfQB0ZgoCbIUJFFsqKKSRXCftNsOUET5u8fCQ95PhhgxWhT1Z8B00qcxXyJ9PXNwUH9xhVX9gWy1vgofDX-tN-g61zj3fhcdCw8UrHKjdH"
    },
    {
      "resolved_url": "https://www.bydfi.com/en/questions/what-are-the-regulations-and-legalities-surrounding-cryptocurrency-in-aruba",
      "title": "bydfi.com",
      "url": "https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQHBxcj0r-zJxlX5-jED4f4zgY1crzTDR53knQJpJ-H0UX8ErC8Dh5Sa0R3gclyIyamrSOvS1cf2xyZOauR8NSj-_WlT-GFW6JjqaZXDZ8bqTqCKPbcit5kfCdoDZqnOGAH7N-UGLddLTU6OwvWQvo8d6K-EEAeRrrzrTFd6iOGi1RvCzpUmxjS4sb9KatE4hKOIJ3TTLW2zFCeryvoKmY_z7OiH0B83GrZO"
    }
  ],
  "status": "Allowed-Regulated",
  "structured_data": {
    "confidence_level": "High",
    "detailed_analysis": "Aruba has established a formal regulatory environment for cryptocurrencies, transitioning from a \u0027buyer beware\u0027 approach to a supervised regime. Effective September 8, 2021, the Centrale Bank van Aruba (CBA) brought Virtual Asset Service Providers (VASPs) under its supervisory umbrella by amending the \u0027State Ordinance for the Prevention and Combating of Money Laundering and Terrorist Financing\u0027 (AML/CFT State Ordinance). This amendment classifies VASPs as Designated Non-Financial Service Providers (DNFBPs), requiring them to register with the CBA and implement robust AML/KYC protocols.\n\nThe regulatory framework explicitly prohibits any natural or legal person from professionally engaging in the exchange of virtual currencies (fiat-to-crypto or crypto-to-crypto), providing custodian wallets, or facilitating transfers in or from Aruba without registration. A grace period was provided until December 8, 2021, after which unregistered operation became a violation of Article 50 of the State Ordinance, subject to enforcement actions. This move aligns Aruba with FATF Recommendation 15 regarding new technologies.\n\nDespite the existence of this registration regime, the practical environment for retail traders remains challenging. The CBA continues to issue strong public warnings, such as the June 2023 notice, highlighting that crypto assets themselves are \u0027largely unregulated\u0027 (referring to the lack of prudential and consumer protection standards compared to traditional banking products) and highly volatile. The CBA has specifically warned about fraudulent schemes on social media that misuse the logos of reputable Aruban banks to feign legitimacy.\n\nFurthermore, the integration of crypto with the local banking sector is poor. Reports and anecdotal evidence indicate that major Aruban banks, driven by strict compliance obligations and de-risking strategies, often refuse to process transactions related to cryptocurrency exchanges. Consequently, while it is legally permissible for residents to trade, they often must rely on international payment processors or foreign accounts to facilitate funding, as local infrastructure remains hostile to the asset class.",
    "executive_summary": "Retail cryptocurrency trading is legally permitted in Aruba, and the sector is subject to a specific regulatory framework for anti-money laundering (AML) compliance. Since September 2021, the Centrale Bank van Aruba (CBA) has supervised Virtual Asset Service Providers (VASPs), requiring them to register as \u0027designated non-financial service providers.\u0027 Despite this legal framework, the CBA frequently issues warnings regarding the risks of crypto assets, and local commercial banks remain highly risk-averse, often blocking crypto-related transactions.",
    "important_considerations": [
      "Banking Access: Local banks (e.g., Aruba Bank, Caribbean Mercantile Bank) are extremely risk-averse and may block transfers to crypto exchanges due to de-risking policies.",
      "Consumer Protection: The CBA emphasizes that while VASPs are supervised for AML, the crypto assets themselves are \u0027largely unregulated\u0027 and offer no consumer protection or deposit insurance.",
      "Taxation: Aruba generally does not tax capital gains for individuals unless the activity is deemed \u0027speculative\u0027 or a \u0027business\u0027 (day trading), in which case it falls under progressive income tax rates.",
      "Scams: The regulator frequently warns against social media investment scams that falsely use the logos of local banks."
    ],
    "key_regulatory_pillars": [
      "Centrale Bank van Aruba (CBA) as the primary supervisor for VASPs",
      "Mandatory registration for all VASPs operating in or from Aruba",
      "Compliance with the State Ordinance for the Prevention and Combating of Money Laundering and Terrorist Financing (AML/CFT State Ordinance)",
      "VASPs classified as \u0027Designated Non-Financial Service Providers\u0027 (DNFBPs)"
    ],
    "landmark_legislation": [
      {
        "date_enacted": "2021-09-08",
        "identifier": "AB 2011 no. 28 (Amended 2021)",
        "name": "State Ordinance for the Prevention and Combating of Money Laundering and Terrorist Financing (AML/CFT State Ordinance)",
        "summary": "Amended to explicitly include Virtual Asset Service Providers (VASPs) under the supervision of the CBA. It mandates that any entity providing exchange, transfer, or custody services for virtual assets must register with the CBA and comply with AML/CFT due diligence requirements.",
        "url": "https://www.cbaruba.org/cba/readBlob.do?id=6484"
      },
      {
        "date_enacted": "2022-02-09",
        "identifier": "CBA Announcement",
        "name": "Public Announcement: Supervision of Virtual Asset Service Providers (VASPs)",
        "summary": "Official notice confirming that as of December 8, 2021, it is prohibited to operate as a VASP in Aruba without registration. It outlines the transition period and enforcement measures for non-compliance.",
        "url": "https://www.cbaruba.org/cba/readBlob.do?id=6868"
      }
    ],
    "notes_and_comments": "The status is \u0027Allowed-Regulated\u0027 due to the mandatory VASP registration regime. However, the CBA\u0027s language (\u0027largely unregulated\u0027) in warnings refers to the lack of consumer protection laws (like insurance) rather than the legality of the service providers themselves.",
    "primary_sources": [
      {
        "date": "2022-02-09",
        "key_quote": "As of December 8, 2021, it is prohibited for a natural person, legal person or corporation to be involved in a professional or commercial capacity in the exchange of virtual currency... without being registered with the CBA.",
        "source_type": "regulator",
        "title": "Public Announcement: Supervision of Virtual Asset Service Providers (VASPs)",
        "url": "https://www.cbaruba.org/cba/readBlob.do?id=6868"
      },
      {
        "date": "2023-06-29",
        "key_quote": "Cryptos are largely unregulated in Aruba, as a result of which utmost caution is advised... The CBA strongly advises not make to use of these financial services, especially since this concerns an unregulated party.",
        "source_type": "regulator",
        "title": "Public Warning: Possible fraudulent investment propositions in cryptos",
        "url": "https://www.cbaruba.org/cba/readBlob.do?id=7585"
      },
      {
        "date": "2021-09-08",
        "key_quote": "Designated non-financial service providers... includes... providers of services related to virtual assets.",
        "source_type": "law_text",
        "title": "AML/CFT State Ordinance (English)",
        "url": "https://www.cbaruba.org/cba/readBlob.do?id=6484"
      }
    ],
    "remaining_uncertainties": [
      "The exact number of currently registered VASPs is not prominently displayed in the search snippets, though a register exists.",
      "Specific tax guidance for retail crypto investors (beyond general income tax principles) is not detailed in public CBA documents."
    ],
    "secondary_sources": [
      {
        "date": "2022-04-01",
        "key_quote": "Aruba lacks a specific comprehensive law providing a concrete regulatory framework for this technology... [but] private-sector digital currencies are allowed.",
        "source_type": "analysis",
        "title": "Freeman Law: Aruba and Cryptocurrency",
        "url": "https://freemanlaw.com/cryptocurrency/aruba/"
      }
    ],
    "status": "Allowed-Regulated"
  }
}