18/09/25
As of 31 May 2025, Saint Vincent and the Grenadines (SVG) has implemented the Virtual Asset Business Act (VABA), establishing a comprehensive regulatory framework for virtual asset businesses (VABs) operating in or from SVG. This move aims to enhance regulatory clarity, encourage compliance, and elevate the international credibility of the country’s virtual asset industry.
⚖️ Regulatory Framework & Compliance Obligations
Under the VABA, all entities engaged in virtual asset activities must register with the Financial Services Authority (FSA) and adhere to Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) regulations. These regulations are aligned with the Financial Action Task Force (FATF) guidelines, ensuring strict compliance standards.
📊 Comparative Analysis
Compared to jurisdictions like the European Union, which has stringent regulations under the Markets in Crypto-Assets Regulation (MiCA), SVG’s VABA offers a more flexible approach. While MiCA imposes detailed operational requirements, SVG focuses on core compliance and operational transparency, providing a balanced environment for digital asset businesses.
🌍 Practical Implications
For instance, a digital asset exchange planning to expand into the Caribbean region might consider SVG as a strategic base due to its clear regulatory framework and favourable business environment. Similarly, firms offering wallet services can benefit from SVG’s supportive stance on digital asset operations.
✅ Conclusion
SVG’s implementation of the VABA marks a significant step towards establishing a regulated yet business-friendly environment for virtual asset businesses. This development provides firms with the clarity and structure needed to operate confidently in the digital asset space. For tailored legal advice on licensing, compliance, or structuring your digital asset operations in SVG, contact NUR Legal. Visit us at NUR-Legal.com or contact us directly at info@nur-legal.com
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Emil Korpinen