Antigua and Barbuda Regulatory Landscape for Cryptocurrencies Takes Shape

Embracing Digital Innovation

As the global cryptocurrency market continues to grow, countries around the world are developing their regulatory frameworks to ensure that digital assets are integrated into the financial system while protecting users. Antigua and Barbuda, a Caribbean island nation, has made significant strides in this area.

Blockchain-Based Digital Currency: DXCD

In 2020, the Eastern Caribbean Central Bank (ECCB) launched a pilot program for a blockchain-based digital currency, known as DXCD, which was designed to be backed by the central bank. This initiative marked a major step forward for Antigua and Barbuda’s regulatory landscape and demonstrated its commitment to embracing digital innovation.

Launch of Dcash

Following the success of the DXCD pilot program, Antigua and Barbuda became one of the first countries in the Caribbean to launch its own cryptocurrency, called Dcash. Introduced in 2021, Dcash is a blockchain technology-based currency that allows for the trading of goods across the islands of Grenada, St. Lucia, St. Kitts and Nevis, and Antigua and Barbuda.

Regulation for Virtual Asset Service Providers (VASPs)

The country’s Digital Assets Business Bill of 2020 also provided much-needed regulation for virtual asset service providers (VASPs), such as exchanges and wallets. The Financial Services Regulatory Commission (FSRC) is responsible for overseeing these VASPs to ensure compliance with the law and protect users.

Tax Environment

In terms of taxation, Antigua and Barbuda offers a relatively relaxed tax environment for residents, with no:

• Capital gains tax
• Inheritance tax
• Income tax
• Wealth tax on worldwide income or assets

However, non-residents generating dividends, interest, or royalties in the country are subject to a withholding tax of 25%.

Ongoing Tensions and Challenges

In a surprising move, banking authorities in Antigua and Barbuda advised citizens to avoid using Bitcoin ATMs in 2021, citing concerns over unregulated activity. While the use of ATMs was not banned outright, this decision highlighted ongoing tensions between governments and traditional financial institutions when it comes to cryptocurrency regulation.

Conclusion

As the regulatory landscape continues to evolve, Antigua and Barbuda is positioning itself as one of the most crypto-receptive countries in the Caribbean, with a growing focus on digital innovation and financial inclusion.