DESCRIBING the Virtual Assets and Virtual Asset Service Providers Bill, 2025 as a “measured” approach, the Central Bank expressed its support for the proposed bill, which seeks to ban all virtual asset activity – trading in bitcoin, NFTs and other digital assets – until 2027.
On September 24, while responding to questions sent to the Central Bank from Newsday, it said virtual assets and the technology behind it can present both opportunities and threats.
“Virtual assets and their underlying technology present opportunities for financial innovation, efficiency and financial inclusion but these can also be undermined by the risks associated with criminal activity. These risks are evident domestically given the publicised reports of investment scams perpetrated on our citizens.”
Minister of Finance Davendranath Tancoo introduced the bill in the House of Representatives on September 12. He later said the bill was a work in progress
The Central Bank explained that the bill was a critical component of the measures intended to be taken by the country in light of the Caribbean Financial Action Task Force (FATF)’s fifth round of mutual evaluation of the country.
The Central Bank said the evaluation is currently underway.
“Given the rapid developments in the virtual assets landscape, one of the key areas of focus is the country’s compliance with the FATF’s recommendation 15, which requires countries to assess and understand the risks posed by virtual assets and implement an appropriate framework premised on the country’s risk assessment.”
It said regulators such as the Securities Exchange Commission expect to complete the risk assessment report over the next couple of months.
“In the absence of a comprehensive regulatory framework, this bill represents the first phase with a temporary prohibition on virtual asset commercial activities until December 2027,” he said.
“During this time, the financial sector regulators, together with the Financial Intelligence Unit of TT (FIUTT), will utilise the findings of the risk assessment to develop a proportionate and risk-based framework for the registration, regulation and supervision of the sector.”
The Central Bank said the approach is consistent with that taken by other jurisdictions such as Belize.
It said, based on social media alerts, bank is aware of several people advertising as virtual asset service providers.
“Companies have also approached the Central Bank with expressions of interest in conducting virtual asset businesses in TT,” it added.
The Central Bank said while the SEC and other regulators assess the risks and benefits of virtual assets, the bank continues to conduct its regulatory and supervisory functions to promote financial stability and engage all stakeholders openly.
* The exchange between virtual assets and fiat currency
* Trading, transferring, selling or exchanging virtual assets
3. The bill proposes that VASPs notify the SEC of their operations within one month of the bill becoming law and also refrain from carrying out activities for another three months.
4. VASPs face fines as follows:
* Failure to notify the SEC of virtual asset activities – $125,000 fine on summary conviction.
* Unauthorised virtual asset activities before the three-month period – $5 million and imprisonment for five years.
* Individuals are liable on summary conviction to a fine of $500,000 for every day that the offence continues.
* Directors/business officers engaged in unauthorised virtual asset activities – $5 million and imprisonment for five years.
* Continued engagement in unauthorised virtual asset activities – $500,000 for every day that the offence continues.
* Unauthorised advertising of virtual asset activities – $125,000 and a year in jail
Read more on Trinidad and Tobago Newsday
