Dominica and Cryptocurrency

Dominica Cryptocurrency Laws
Regulation of Digital Currencies: Cryptocurrency, Bitcoins, Blockchain Technology

The Commonwealth of Dominica has not passed any law directly banning or regulating the use or trade of cryptocurrency and public opinion of cryptocurrency in Dominica has remained positive. On March 14, 2015, Dominica was reportedly scheduled to host an event, officially titled “The Bit Drop,” which was meant to put bitcoins into the hands of Dominica’s entire population, reported to be 70,000 people, but the project was canceled.[1]  According to Dominica News Online (DNO), organizers indicated that they did not receive enough support from the government on the event, and an election cycle may have “complicated matters.”[2] DNO later reported that Kenneth Darroux, Ministry of Foreign Affairs, International Business and Diaspora Relations, commented that while talks were held with the Bit Drop organizers, the Ministry of Finance never received a final proposal.[3]

Most recently, Domica is set to participate in the ECCB pilot, which will test the use of digital currency alongside the country’s national currency. The ECCB, however, has taken a firm stance that their electronic currency pilot, referred to as ‘Dcash’, is not a cryptocurrency and specifically differentiates the use and trade of Dcash from that of bitcoin.[4]

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:

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

Is cryptocurrency legal in Dominica?
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.


[1] Pete Rizzo, Plan to Distribute Bitcoin in Dominica Shelved, Coin Desk (Feb. 10, 2015), https://www.coindesk. com/plan-distribute-bitcoin-dominica-shelved/, archived at https://perma.cc/ZV5K-6NQP.  

[2] Bitcoin Event in Dominica Cancelled, Dominica News Online (Feb. 11, 2015), http://dominicanewsonline. com/news/homepage/news/business/bitcoin-event-in-dominica-cancelled/, archived at https://perma.cc/6T86-CC65.

[3] Gov’t breaks silence on Bitcoin issue, Dominica News Online ( March 16th, 2015), https://dominicanewsonline.com/news/homepage/news/business/govt-breaks-silence-on-bitcoin-issue/

[4] https://www.eccb-centralbank.org/p/what-you-should-know-1

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