Grenada

{
  "analysis_text": "Grenada has established a formal regulatory environment for cryptocurrencies through the enactment of the **Virtual Asset Business Act, 2021**. This legislation, which aligns with the Eastern Caribbean Currency Union\u0027s (ECCU) regional harmonization efforts, designates the **Grenada Authority for the Regulation of Financial Institutions (GARFIN)** as the competent authority for supervising Virtual Asset Service Providers (VASPs). The Act mandates that any entity offering virtual asset services\u2014such as exchanges, transfer services, or custody providers\u2014must register with GARFIN. Operating without registration is a criminal offense punishable by fines and imprisonment.\n\nAlthough the primary legislation was passed in 2021, the operational framework was only fully actualized with the gazetting of the **Virtual Asset Business Regulations 2024** on May 24, 2024. These regulations clarified the fee structure (EC$2,500 for application, EC$10,000 for registration) and the review process. Following this, GARFIN issued public notices inviting VASPs to register. As of mid-2024, the registry was open, though reports indicated that the issuance of the first batch of licenses was still pending the processing of these new applications. This places Grenada in an \u0027Allowed-Regulated\u0027 status, distinct from a \u0027Gray-Zone\u0027 because the laws are permanent and the regulator is actively soliciting compliance.\n\nFrom a retail perspective, individuals are free to buy, sell, and hold cryptocurrencies. There are no prohibitions on retail trading. However, the **Eastern Caribbean Central Bank (ECCB)**, the monetary authority for the region, frequently issues warnings regarding the high risks, volatility, and lack of consumer protection associated with unregulated crypto assets. The ECCB distinguishes clearly between private cryptocurrencies and its own Central Bank Digital Currency (CBDC) project, **DCash**, which is legal tender.\n\nTaxation of cryptocurrency in Grenada is based on existing property and income tax laws rather than specific crypto-tax legislation. Capital gains are generally taxed at **15%** for residents, particularly on short-term trading profits. However, Grenada is often marketed as a tax-friendly jurisdiction for non-residents and digital nomads, who may be exempt from taxes on foreign-sourced income and capital gains. Additionally, the use of crypto to purchase goods and services attracts the standard **15% VAT**.",
  "confidence_level": "High",
  "executive_summary": "Retail cryptocurrency trading is legal and regulated in Grenada under the Virtual Asset Business Act, 2021. The Grenada Authority for the Regulation of Financial Institutions (GARFIN) serves as the primary regulator, overseeing the registration and supervision of Virtual Asset Service Providers (VASPs). While the legislative framework is fully enacted with regulations gazetted in May 2024, the licensing regime is in its early operational stages, with applications being accepted but few, if any, licenses issued as of mid-2024.",
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    {
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      "title": "cryptonomadhub.io",
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      "resolved_url": "https://charltonsquantum.com/wp-content/uploads/docs/grenada-crypto-guide.pdf",
      "title": "charltonsquantum.com",
      "url": "https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQHAovfJ1T1OT5bq8JCIHRrGJJiUQ6BN7Zz0_pucgM88tvm30_bCcwhFz3klyL43bB_IXUFdvCKJj0TzQUKhtEfyboPPnvr4B8a8pmmJIVQ6Urag8msAONmZlBmQtSiw0aeJWOK-g4Z25jWzd6xrsnaOEi2h32RvMGqt0TfigTxgr7pRGhKm-CE="
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      "resolved_url": "https://charltonsquantum.com/grenada-virtual-assets-regulation/",
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    {
      "resolved_url": "https://blog.upay.best/crypto-adoption/grenada/",
      "title": "upay.best",
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    {
      "resolved_url": "https://www.theblock.co/post/224319/justin-sun-grenada-wto-ambassador",
      "title": "theblock.co",
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  ],
  "status": "Allowed-Regulated",
  "structured_data": {
    "confidence_level": "High",
    "detailed_analysis": "Grenada has established a formal regulatory environment for cryptocurrencies through the enactment of the **Virtual Asset Business Act, 2021**. This legislation, which aligns with the Eastern Caribbean Currency Union\u0027s (ECCU) regional harmonization efforts, designates the **Grenada Authority for the Regulation of Financial Institutions (GARFIN)** as the competent authority for supervising Virtual Asset Service Providers (VASPs). The Act mandates that any entity offering virtual asset services\u2014such as exchanges, transfer services, or custody providers\u2014must register with GARFIN. Operating without registration is a criminal offense punishable by fines and imprisonment.\n\nAlthough the primary legislation was passed in 2021, the operational framework was only fully actualized with the gazetting of the **Virtual Asset Business Regulations 2024** on May 24, 2024. These regulations clarified the fee structure (EC$2,500 for application, EC$10,000 for registration) and the review process. Following this, GARFIN issued public notices inviting VASPs to register. As of mid-2024, the registry was open, though reports indicated that the issuance of the first batch of licenses was still pending the processing of these new applications. This places Grenada in an \u0027Allowed-Regulated\u0027 status, distinct from a \u0027Gray-Zone\u0027 because the laws are permanent and the regulator is actively soliciting compliance.\n\nFrom a retail perspective, individuals are free to buy, sell, and hold cryptocurrencies. There are no prohibitions on retail trading. However, the **Eastern Caribbean Central Bank (ECCB)**, the monetary authority for the region, frequently issues warnings regarding the high risks, volatility, and lack of consumer protection associated with unregulated crypto assets. The ECCB distinguishes clearly between private cryptocurrencies and its own Central Bank Digital Currency (CBDC) project, **DCash**, which is legal tender.\n\nTaxation of cryptocurrency in Grenada is based on existing property and income tax laws rather than specific crypto-tax legislation. Capital gains are generally taxed at **15%** for residents, particularly on short-term trading profits. However, Grenada is often marketed as a tax-friendly jurisdiction for non-residents and digital nomads, who may be exempt from taxes on foreign-sourced income and capital gains. Additionally, the use of crypto to purchase goods and services attracts the standard **15% VAT**.",
    "executive_summary": "Retail cryptocurrency trading is legal and regulated in Grenada under the Virtual Asset Business Act, 2021. The Grenada Authority for the Regulation of Financial Institutions (GARFIN) serves as the primary regulator, overseeing the registration and supervision of Virtual Asset Service Providers (VASPs). While the legislative framework is fully enacted with regulations gazetted in May 2024, the licensing regime is in its early operational stages, with applications being accepted but few, if any, licenses issued as of mid-2024.",
    "important_considerations": [
      "Taxation: Crypto is generally treated as property/intangible asset. Residents are subject to a 15% Capital Gains Tax (often cited for short-term gains).",
      "VAT: A 15% Value Added Tax applies to goods and services purchased with cryptocurrency.",
      "Non-Resident Benefits: Non-residents (e.g., digital nomads) may benefit from 0% tax on foreign-sourced income/capital gains.",
      "Licensing Lag: While the law is from 2021, regulations were only gazetted in May 2024, meaning the licensing regime is effectively very new.",
      "Regional Context: Grenada is part of the ECCU; the ECCB launched the DCash CBDC pilot, indicating a regional openness to digital assets."
    ],
    "key_regulatory_pillars": [
      "Primary Regulator: Grenada Authority for the Regulation of Financial Institutions (GARFIN)",
      "Regional Monetary Authority: Eastern Caribbean Central Bank (ECCB)",
      "Core Legislation: Virtual Asset Business Act, 2021 (Act No. 7 of 2021)",
      "Operational Regulations: Virtual Asset Business Regulations 2024 (S.R.O. 9 of 2024)",
      "Compliance: Mandatory VASP registration, AML/CFT compliance, and client asset segregation (40% escrow requirement)"
    ],
    "landmark_legislation": [
      {
        "date_enacted": "2021-07-23",
        "identifier": "Act No. 7 of 2021",
        "name": "Virtual Asset Business Act, 2021",
        "summary": "Establishes the legal framework for the registration and supervision of virtual asset businesses. Defines virtual assets, mandates registration for VASPs, and sets penalties for non-compliance (fines up to EC$10,000 and imprisonment).",
        "url": "https://www.garfin.gd"
      },
      {
        "date_enacted": "2024-05-24",
        "identifier": "S.R.O. 9 of 2024",
        "name": "Virtual Asset Business Regulations 2024",
        "summary": "Provides operational details for the 2021 Act, including application fees (EC$2,500), registration fees (EC$10,000), and specific timelines for application review (90 days).",
        "url": "https://www.garfin.gd"
      }
    ],
    "notes_and_comments": "Grenada\u0027s regulatory environment was heavily publicized during the tenure of Justin Sun (founder of Tron) as its WTO Ambassador, though his diplomatic status ended around 2023. The country is moving from a \u0027paper\u0027 regulatory state to an operational one with the 2024 regulations.",
    "primary_sources": [
      {
        "date": "2021-07-23",
        "key_quote": "An Act to provide for the registration and supervision of virtual asset business from Grenada and with persons in Grenada.",
        "source_type": "law_text",
        "title": "Virtual Asset Business Act, 2021 (Act No. 7 of 2021)",
        "url": "https://www.finance.gd/index.php/laws-legislation/finish/140-2021-laws/1004-act-7-of-2021-virtual-asset-business"
      },
      {
        "date": "2024-05-24",
        "key_quote": "Virtual assets service providers are regulated in accordance with the Virtual Asset Business Act, Act No. 7 of 2021.",
        "source_type": "regulator",
        "title": "GARFIN Virtual Asset Service Providers Overview",
        "url": "https://garfin.gd/virtual-asset-service-providers/"
      },
      {
        "date": "2024-05-27",
        "key_quote": "Regulations have been gazetted to guide the registration and operation of virtual businesses in Grenada... S.R.O. 9 of 2024.",
        "source_type": "news",
        "title": "Virtual Assets Business regulation published 3 years after law approved",
        "url": "https://nowgrenada.com/2024/05/virtual-assets-business-regulation-published-3-years-after-law-approved/"
      }
    ],
    "remaining_uncertainties": [
      "Confirmation of the first batch of licenses actually issued under the 2024 regulations.",
      "Specifics on the \u0027short-term\u0027 vs \u0027long-term\u0027 holding period for capital gains tax applicability.",
      "Whether any specific \u0027travel rule\u0027 implementation guidelines have been released by GARFIN."
    ],
    "secondary_sources": [
      {
        "date": "2025-10-22",
        "key_quote": "Grenada applies a 15.0% capital gains tax rate on short-term cryptocurrency gains.",
        "source_type": "analysis",
        "title": "Grenada Crypto Tax Guide",
        "url": "https://cryptonomadhub.io/grenada-crypto-tax/"
      },
      {
        "date": "2022-11-20",
        "key_quote": "The ECCB encourages the public to exercise due diligence and to be mindful of the high level of risk crypto-assets present.",
        "source_type": "regulator",
        "title": "ECCB Advisory on Crypto Assets",
        "url": "https://www.eccb-centralbank.org/news-view/advisory-eccb-encourages-public-to-exercise-due-diligence-before-investing-in-crypto-assets"
      }
    ],
    "status": "Allowed-Regulated"
  }
}