🇻🇨 SVG’s New Virtual Asset Regulation: A Turning Point for Global Crypto Operators

📘 What the VABA Means

SVG’s Financial Services Authority (FSA) has brought the Virtual Asset Business Act (VABA) into full effect, requiring all entities conducting virtual-asset services - including exchange, custody, transfer, and token issuance - to register and obtain authorisation.

From 2 June 2025, the FSA opened the registration window, and existing operators must regularise by 31 July 2025 or face enforcement actions. Applicants must submit a detailed package including corporate information, fit-and-proper declarations, AML/CFT policies, and proof of incorporation in SVG.

Registration under the VABA involves an application fee of XCD 4,000 and an annual renewal fee of XCD 12,000. In addition, a statutory deposit of XCD 100,000 or 25 % of client obligations (whichever is greater) must be maintained in cash or other approved securities.

The framework aligns SVG with Financial Action Task Force (FATF) standards, embedding Know-Your-Customer (KYC), AML, and Counter-Terrorism Financing (CFT) obligations into the regulatory structure.

⚖️ Regulation and Compliance Standards

Under the new law, a “Virtual Asset Business” is defined broadly to capture entities offering digital value transfer or storage other than fiat or securities. The regime applies both to domestic operators and those offering services “from within SVG to clients abroad”.

All applicants must:

• Incorporate a local business entity (Business Company or LLC) registered in SVG;

• Appoint an approved Compliance Officer or MLCO;

• Implement AML/CFT programmes consistent with FATF guidance;

• Maintain accounting records and submit annual audited financial statements to the FSA.

While the regulator has not published a fixed approval timeframe, it assesses each case individually and may request supplementary documentation during review.

The FSA’s guidance emphasises transparency, governance, and operational integrity — signalling an end to the “unregulated offshore” perception previously associated with SVG-based crypto projects.

🔍 Legal and Market Implications

The new framework transforms SVG’s global reputation. Previously, firms incorporated there could operate without local oversight; now, only authorised VASPs (Virtual Asset Service Providers) may lawfully engage in crypto business.

For existing entities, compliance is not optional. Those continuing to operate without registration after 31 July 2025 risk enforcement actions, including removal from the register or prosecution under the Act.

SVG’s move mirrors the approach of Cayman Islands, Seychelles, and Mauritius, all of which have recently tightened digital-asset oversight. The reform enhances SVG’s credibility with international banks and payment networks - a key benefit for firms seeking stable correspondent relationships.

However, higher compliance costs and transparency obligations mean smaller operators may relocate to lighter-touch jurisdictions. Larger, well-capitalised exchanges and custodians are more likely to remain, leveraging SVG’s continuing territorial tax system and strategic location within the Eastern Caribbean.

💡 Applicability and Future Outlook

Examples of affected businesses include:

• Crypto exchanges that facilitate trading pairs for tokens;

• Custodial wallet providers holding digital assets for clients;

• Token issuers launching new digital instruments; and

• Cross-border remittance platforms using blockchain technology.

Each must demonstrate full compliance with the VABA and related AML laws. The FSA will maintain a public register of authorised VASPs, improving investor confidence and consumer protection.

Going forward, SVG’s regulatory path may pave the way for a regional harmonisation of virtual-asset frameworks within the Organisation of Eastern Caribbean States (OECS). As international scrutiny of offshore crypto centres increases, SVG’s alignment with FATF standards positions it as a legitimate, transparent, and sustainable jurisdiction for compliant digital-asset businesses.

🧭 Conclusion

Saint Vincent and the Grenadines has taken a major step toward responsible crypto governance through the Virtual Asset Business Act 2025. The law establishes clear obligations, introduces capital and compliance standards, and enhances regulatory credibility.

Businesses operating or planning to establish in SVG must carefully assess their readiness to meet these requirements. For those seeking professional legal advice on registration, restructuring, or comparative jurisdiction analysis, contact NUR Legal - our lawyers specialise in digital-asset regulation and compliance across multiple jurisdictions.

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