St. Vincent and the Grenadines Tightens Regulation of Crypto Companies: What You Need to Know in 2025

From spring 2025, important changes in the regulation of the cryptocurrency sphere will come into force in Saint Vincent and the Grenadines (SVG). This is due to the active implementation of the provisions of the Virtual Asset Business Act (VABA), adopted in 2022. The law is aimed at creating a transparent and safe environment for working with digital assets and establishes mandatory licensing for companies operating in this area.

Who is required to obtain a VASP license

According to VABA, all SVG-registered business companies and LLCs operating with virtual assets are required to apply for a VASP (Virtual Asset Service Provider) license by July 31, 2025. This applies to companies working with cryptocurrencies on behalf of third parties, including:

• Making crypto payments;
• Exchanging cryptocurrencies (including crypto-crypto and crypto-fiat);
• Storing and protecting digital assets;
• Issuing your own tokens, stablecoins or NFTs;
• Transferring crypto assets between wallets and addresses;
• Operation of custodial services;
• Providing salary solutions in cryptocurrency.

Typical representatives of VAB include cryptocurrency exchanges, crypto processing platforms, custodial services, providers of wallets with storage of private keys and issuers of digital currencies.

Who is not covered by the law

VABA does not apply to:

• Software and technology developers who do not control client assets;
• Non-custodial wallets;
• Fully decentralized dApps that do not have centralized management.

What are the alternatives

For companies that do not want to undergo licensing in SVG, there is an alternative - a change of jurisdiction. Today, the most popular destinations are:

• Panama
• Costa Rica

Both countries allow legal crypto activities without a mandatory license, which makes them attractive for startups, DeFi projects, and small businesses in the digital asset sector.

If you plan to continue activities in SVG and meet the VABA criteria, you should consider obtaining a VASP license now to avoid fines or blocking of operations. Otherwise, consider re-registering in a more flexible jurisdiction.

IT-OFFSHORE is ready to provide a full list of requirements, help with the preparation of documents for licensing, or organize a turnkey change of jurisdiction. We offer professional support and an individual approach to each client.