Antigua and Barbuda Cryptocurrency

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Antigua and Barbuda Cryptocurrency Laws

Digital Assets Business Bill

The government of Antigua and Barbuda passed legislation entitled the Digital Assets Business Bill of 2020, which officially became law on June 18, 2020. The Act governs, among other things, the claying on of a digital asset business in Antigua and Barbuda.

Under the Act, a person carries on digital asset business in Antigua and Barbuda if—

(a) it is incorporated or formed in Antigua and Barbuda and carries on any digital asset activity set out under section 2(2); or

(b) is incorporated or formed outside of Antigua and Barbuda and carries on any digital asset business activity set out under section 2(2) in or from within Antigua and Barbuda.

The Act provides for an Advisory Panel to survey the effect of digital asset businesses.

Subject to limited exceptions, the Act prohibits a person from carrying on digital asset business in or from within Antigua and Barbuda unless that person is a licensed undertaking in one of several specified classes.

Certain activities are required to be performed under a license, such as the carrying on of one or more of the following digital asset business activities—

(a) issuing, selling or redeeming virtual coins, tokens or any other form of digital assets;

(b) operating as a payment service business utilizing digital assets which include the provision of services for the transfer of funds;

(c) operating as an electronic exchange;

(d) providing custodial wallet services;

(e) operating as a digital assets services vendor.

The Act provides for penalties for violations, including the following:

(a) on summary conviction, to a fine of $50,000 or to imprisonment for one year or to both such fine and imprisonment;

(b) on conviction on indictment, to a fine of $250,000 or to imprisonment for five years or to both such fine and imprisonment.

P.S. Insights on Cryptocurrency Legal Issues

Most jurisdictions and authorities have yet to enact laws governing cryptocurrencies, meaning that, for most countries, the legality of crypto mining remains unclear.

Under the Financial Crimes Enforcement Network (FinCEN), crypto miners are considered money transmitters, so they may be subject to the laws that govern that activity. In Israel, for instance, crypto mining is treated as a business and is subject to corporate income tax. In India and elsewhere, regulatory uncertainty persists, although Canada and the United States are relatively friendly to crypto mining.

However, apart from jurisdictions that have specifically banned cryptocurrency-related activities, very few countries prohibit crypto mining.

Our Freeman Law Cryptocurrency Law Resource page provides a summary of the legal status of cryptocurrency for each country across the globe with statutory or regulatory provisions governing cryptocurrency. The globe below provides links to country-by-country summaries:

Cryptocurrency and Blockchain Technical Resources:

Blockchain, Cryptocurrency, and Digital Asset Law

Podcast:

The Freeman Law Project – Cryptocurrency Regulation and Taxation: A Brief Primer

Do you have questions about cryptocurrency, digital currencies, or blockchain technology? Freeman Law can help with digital currencies, tax planning, and tax compliance. Contact us now to schedule a consultation or call (214) 984-3410 to discuss your cryptocurrency and blockchain technology concerns.

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