Financial Crime World

Bank of Jamaica Takes Steps to Regulate Fintech Sector

KINGSTON, JAMAICA - The Bank of Jamaica has been actively engaging with the fintech sector, taking steps to ensure that digital financial services are safe and secure for Jamaican consumers.

Public Awareness Statement

In a recent public awareness statement, the Bank advised that virtual currencies are not legal tender in Jamaica and that it does not regulate or supervise such currencies. The statement also clarified that no entity has been authorized to operate a virtual currency platform in the country.

CARICOM Fintech Work Group Survey

The Bank of Jamaica has participated in a survey on digital currency conducted by the CARICOM Fintech Work Group, which aims to foster collaboration, build capacity, and share information among Caribbean countries. The survey covered topics such as:

  • Legal and regulatory framework
  • Proposals for digital currencies
  • Issues faced when dealing with digital currencies

Sandbox Arrangement

To ensure that fintech applications are properly assessed and reported on, the Bank of Jamaica has established a sandbox arrangement, which involves a 10-step process. This includes:

  • Approval from senior management
  • Development of governance arrangements
  • Setting up an internal Fintech Work Group
  • Drafting guidelines for sandbox

Proposed Fintech Applications

The Bank has received several proposals and requests for clarification on fintech applications, including:

  • Cryptocurrency
  • Central bank digital currency
  • Digital Jamaican dollar and digital wallet
  • Digital currency exchange
  • Securities blockchain platform
  • Cryptocurrency trading
  • KYC database
  • Token issuance

Approach to Fintech Regulation

The Bank’s approach to fintech regulation is built on a foundation of public awareness and collaboration. “We are committed to ensuring that fintech applications are safe and secure for Jamaican consumers,” said Novelette Panton, a representative from the Bank of Jamaica.

Seminar: Fintech Opportunities and Challenges in Payment Systems

The Bank’s efforts have benefited from presentations made at the Seminar: “Fintech Opportunities and Challenges in Payment Systems” held during the Central Banking Training Series in Windsor 2018.

Approved Entities

To date, the Bank of Jamaica has received several proposals and requests for clarification on fintech applications. Some of the approved entities include:

  • Cryptocurrency
  • Central bank digital currency
  • Digital Jamaican dollar and digital wallet
  • Digital currency exchange
  • Securities blockchain platform
  • Cryptocurrency trading
  • KYC database
  • Token issuance

Future Plans

The Bank will continue to engage with the fintech sector, ensuring that digital financial services are safe and secure for Jamaican consumers.