Crypto license in Saint Vincent
and Grenadines

Cryptocurrency operations are lawful in St. Vincent and the Grenadines (SVG). Currently, the SVG government has not tailored its regulations regarding cryptocurrency. Plans are underway to formulate legislation encompassing foreign exchange (forex) and cryptocurrency dealings within the nation. Until these new regulations are enacted, your cryptocurrency venture is regulated under the Virtual Assets Act 2022.

Advantages of obtaining a crypto license in SVG

• No taxes;
• Low running fees;
• No minimum authorized capital;
• No reporting;

Regulatory Clarity

The country’s regulatory authority is the Financial Services Authority (FSA). The powers of this organization are defined by the relevant FSA Law, as well as other legislative acts:

• The Money Laundering and Financing of Crime Act outlines the main ways to control financial transactions, including those related to cryptocurrencies. The regulator is responsible for ensuring that businesses operating in the crypto sector comply with this law.
• On Business with Virtual Assets – defines which categories of activities are subject to licensing. According to this law, adopted in 2022, a particular state register was created, where data on all registered crypto companies on SVG is entered.

Available types of cryptocurrency activities after successful licensing

Obtaining a crypto license in St. Vincent and the Grenadines gives entrepreneurs the right to operate:

• Exchange cryptocurrencies among themselves, as well as for fiat and vice versa.
• Providing crypto exchange services.
• Placement of ICOs.
• Providing wallet services.
• DeFi projects.
• Work in the form of trading platforms of any kind.

Conditions for obtaining a crypto license in Saint Vincent and the Grenadines

There exist several crucial licensing criteria to bear in mind: 

• The company must be registered in the territory of this jurisdiction.
• A well-thought-out, clear business plan based on realistic estimates of the cryptocurrency market is mandatory.
• A deposit of USD 100,000 in favor of the FSA.
• Payment of an annual license fee of USD 12,000.
• A local authorized representative is required.
• Submission of quarterly reports to the FSA, which, among other things, must contain information on the number of client accounts and their value in US dollars.
• Conducting regular due diligence on clients, monitoring transactions, and verifying persons engaged in political activities is necessary.
• A clear definition of the primary services to be provided by the legal entity at the first stages of operation (the list of services may be expanded later).
• The founder and shareholders have no criminal record. A certificate confirming this fact must be no older than three months.
• The ability to ensure a high level of security of the online platform. Having all the necessary technical solutions for the crypto company’s online services is also essential.

The regional regulatory body lacks a dedicated surveillance strategy for cryptocurrency firms as it’s not obligatory per existing laws. However, adhering to FATF anti-money laundering guidelines by instituting thorough KYC and AML protocols is imperative to foster trust among your customers, partners, and investors. 

Steps for obtaining a crypto license in Saint Vincent and the Grenadines

• Company registration – it’s vital to have a local legal address. Registration fees depend on the chosen legal form.
• Creation of a detailed business plan outlining planned services and financial projections.
• Preparation of AML/KYC policy to comply with international anti-fraud requirements.
• Opening a local bank account with a mandatory deposit.
• Preparation and submission of necessary documents, including passports, founding documents, financial reports, and background checks.
• The Financial Services Authority (FSA) reviews applications and assesses competency, which may include testing and interviews.

How long is the licensing process?

In this jurisdiction, obtaining a license typically takes three months or more. The term depends on the specifics of each individual project.

Saint Vincent and the Grenadines offer a favorable regulatory environment for obtaining crypto licenses, providing clarity, credibility, and investor confidence for licensed entities. By understanding the regulatory framework, advantages, procedures, and cost considerations, businesses can capitalize on the opportunities presented by the burgeoning crypto sector in Saint Vincent and the Grenadines to establish and expand their operations successfully. 

Why You Should Address SBSB Experts For Obtaining crypto license in Saint Vincent and the Grenadines

The SBSB Fintech Lawyers team has extensive experience in successfully launching crypto projects in different jurisdictions. Since 2013, we have specialized in fintech and crypto business, helping clients bring their ideas to life in strict compliance with the requirements of the legislation of the chosen jurisdiction.

If you need a crypto license in the SVG, contact the lawyers at SBSB Fintech Lawyers.