With the continued effort to maintain compliance with global Anti-Money Laundering policies and to advance laws to facilitate new forms of business, the BVI and Eastern Caribbean countries (Antigua and Barbuda, Dominica, Grenada, St. Kitts and Nevis, St Lucia, St. Vincent and the Grenadines) have all implemented or in the process of implementing Virtual/Digital Asset Legislation and Regulations.

As this sector continues to evolve daily, the demand to create robust and attractive legislation has been an uphill battle for these territories who must also balance the standards set by the Organisation for Economic Corporation and Development (OECD) and Financial Action Task Force (FATCA)

At a glance, each jurisdiction covers the following business activities within this virtual assets space:

1. exchange between digital assets and fiat currencies;
2. exchange between one or more forms of digital assets;
3. transfer of digital assets;
4. safekeeping or administration of digital assets or instruments enabling control over digital assets;
5. participation in and provision of financial services related to an issuer’s offer or sale of a digital asset.

Two glaring characterises have been identified following our evaluations of these regimes, the first is a high standard of compliance procedures which legitimize the regime not only for licensees, but international clients and vendors and secondly a low entry cost and ongoing operational requirements.

As a number of companies have been operating without the need to be licensed over the years, they are now required to regularize their status in the respective jurisdictions before grace periods have surpassed. Dentons has been assisting such prospective licensee and third-party vendors to navigate the complexities of these laws and regulations.

Contact us to explore how we can help you or your clients with these new developments in the virtual assets space.

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