Changes in the regulation of cryptocurrency activities in Saint Vincent and the Grenadines in 2025

From spring 2025, important changes in the regulation of businesses related to cryptocurrencies and digital assets will come into force in Saint Vincent and the Grenadines. The basis for the new requirements is the Virtual Asset Business Act (VABA), which has been in force since 2022. The law provides for mandatory licensing for all companies operating in the virtual asset sector.

All Business Companies and LLCs registered in this jurisdiction operating in the cryptocurrency sector are required to apply for a VASP (Virtual Asset Service Provider) license by July 31, 2025. Failure to comply with the requirements may result in restrictions and sanctions from the regulator.

What is and is not included in the definition of Virtual Asset Business

According to VABA, virtual asset business is any activity with digital assets on behalf of third parties. In particular:

• making crypto payments;
• cryptocurrency exchange (both crypto-fiat and crypto-crypto);
• digital asset storage and protection;
• cryptocurrency, token, NFT, stablecoin issuance;
• crypto wallet transfers;
• provision of custody services;
• crypto processing and cryptocurrency payouts.

VABA does not apply to companies and projects that do not control client funds, such as non-custodial wallet technology developers and fully decentralized dApps.

Possible actions for businesses

If your company falls under the definition of Virtual Asset Business, there are two options:

1. Change jurisdiction - for example, to countries with more lenient regulation of digital assets. Popular alternatives include Panama and Costa Rica, where there is no requirement for crypto companies to obtain a license yet.
2. Obtaining a VASP license - while remaining in Saint Vincent and the Grenadines, you can go through the licensing process that meets the requirements of the law and the activities of your company.

IT-OFFSHORE provides professional services for supporting the registration of companies, choosing a suitable jurisdiction, and obtaining the necessary licenses. IT-OFFSHORE specialists are ready to consult you and help you find the best solution for developing your business in the field of digital assets.