by Linda Straker
- VAB application fee is EC$2,500; registration fee is EC$10,000
- Regulations published in 24 May Government Gazette
- Virtual business covers money transfer businesses such as Zelle, Venmo, PayPal and other such services that are not traditionally qualified as legal tender
Approximately 3 years after Parliament debated and approved the Virtual Asset Business Act (VAB), regulations have been gazetted to guide the registration and operation of virtual businesses in Grenada.
The Virtual Assets Business Act 2021 is a regional uniform law that has been enacted in most of the Eastern Caribbean Currency Union (ECCU) member countries to date. In Grenada, the enforcing and implementing agency will be the Grenada Authority for Grenada for the Regulation of Financial Institutions (GARFIN).
In August 2023, GARFIN posted a notice on its website informing the general public that it was accepting applications for the registration of VABs. It is understood that no company has been licenced to operate a virtual business from the applications received, but the publication of the regulations will now speed up the review of applications.
Section 4 Subsection 1 of the regulation states, “The Authority must, within 90 days of receipt of a complete application, decide whether to grant or refuse to grant the application for a certificate of registration.” Subsection 2 further instructs, “The Authority may request further information or documents from a person for the purpose of considering whether to grant or refuse to grant an application for a certificate of registration.”
Published in the 24 May Government Gazette, the regulations define “virtual asset service” as a service provided in relation to a virtual asset business or transaction. The legislation approved by both Houses of Parliament in mid-2021 defines a virtual asset as “a digital representation of value that can be digitally traded, or transferred, and can be used for payment or investment purposes and does not include digital representations of fiat currency or security.
The legislation further explained that “virtual asset business” means the conduct of one or more of the following activities or operations for or on behalf of another person —
- exchange between a virtual asset and fiat currency;
- exchange between one or more forms of virtual assets;
- transfer of a virtual asset whether or not for value;
- safekeeping or administration of a virtual asset or instruments enabling control over a virtual asset; and
- participating in and provision of financial services related to an issue or sale of a virtual asset.
Virtual business covers money transfer businesses such as Zelle, Venmo, PayPal, and other such services that are not traditionally qualified as legal tender. This means that operators of these businesses can now apply to set up and offer services to Grenadians after paying the necessary fees.
According to the VAB legislation the application fee is EC$2,500 while the registration fee is EC$10,000. Section 19 of the legislation states that if a person/company offers or operates a virtual asset business in or from Grenada without being registered, that person or company commits an offence and is liable on summary conviction to a fine of $10,000 and imprisonment of 2 years.
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