Trinidad and Tobago and Cryptocurrency
Trinidad and Tobago Cryptocurrency Laws
Regulation of Digital Currencies: Cryptocurrency, Bitcoins, Blockchain Technology
Compared to the rest of the Caribbean, Trinidad and Tobago is rather far behind in its implementation of digital currency. The Central Bank of Trinidad and Tobago had included the “[e]xamination of central bank digital currency (CBDC) and its implications for enhancing payment system efficiency” as part of its 2016/2021 Strategic Plan. Nevertheless, the country has taken an extremely risk-averse approach when it comes to collecting the capital and support necessary to fund startups in the digital financial services sector, such as the cryptocurrency sector. Still, the Central Bank of Trinidad and Tobago announced in March 2021 that it was conducting research on the feasibility of creating and implementing a CBDC of its own, even though “[t]here is currently no set timeline for the Bank” to do so, “as this will depend on the outcome of the research.”[1]
Likewise, the Trinidad and Tobago Securities and Exchange Commission (TTSEC), the Central Bank of Trinidad and Tobago, and the Financial Intelligence Unit of Trinidad and Tobago, collectively, the “Regulatory Authorities,” issued a joint statement on January 25, 2019, to clarify that cryptocurrencies are neither regulated nor supervised by the government in Trinidad and Tobago. Consequently, there are no consumer protection laws that shelter consumers against losses that may arise from the use of cryptocurrencies. In exchange, the Regulatory Authorities have been developing regulatory tools, such as a Regulatory Innovation Hub and a Regulatory Sandbox, to help assess the risks, characteristics, and functions of various cryptocurrencies, and assist in the regulation of such financial technology products and services throughout the country. Similarly, the Regulatory Authorities provide consultations on any cryptocurrency offerings on the local market on a case-by-case basis.[2]
In Trinidad and Tobago, a cryptocurrency may be considered a security if it falls within the definition of “security” in section 4(1) of the Securities Act of 2012, which includes, inter alia, “any document, instrument, or writing evidencing ownership of, or any interest in, the capital, debt, property, profits, earnings, or royalties of any person,” such as an investment contract:
any contract, transaction, plan, scheme, instrument or writing, whereby a person invests money or other property in a common enterprise with the expectation of profit or gain based on the expertise, management, or effort of others, and such money or other property is subject to the risks of the common enterprise.[3]
Furthermore, if the cryptocurrency affects the securities market similar to those securities bought or sold via fiat currency, then it may additionally be subject to securities and anti-money laundering laws and regulations. Such rule also applies to securities firms and other market participants that permit transactions using cryptocurrency as well.[4]
On the other hand, new organizations, such as the FinTech Association of Trinidad and Tobago and the Trinidad and Tobago Financial Centre (TTIFC), have encouraged the growth of the financial services sector in the country and the collaboration between the state and private sector toward such growth.[5]
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:
Is cryptocurrency legal in Trinidad and Tobago?
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] Geisha Kowlessar Alonzo, T&T Central Bank slow adopters of digital currency, Trinidad & Tobago Guardian (March 14, 2021).
[2] Published Article – Business Express Newspaper, Is Cryptocurrency a Security? Trinidad and Tobago Securities and Exchange Commission (April 13, 2021); Central Bank of Trinidad and Tobago, Trinidad and Tobago Securities and Exchange Commission, Financial Intelligence Unit of Trinidad and Tobago, Joint Public Statement on Virtual Currency, (January 25, 2019).
[3] Published Article – Business Express Newspaper, Is Cryptocurrency a Security? Trinidad and Tobago Securities and Exchange Commission (April 13, 2021)
[4] Published Article – Business Express Newspaper, Is Cryptocurrency a Security? Trinidad and Tobago Securities and Exchange Commission (April 13, 2021)
[5] Geisha Kowlessar Alonzo, T&T Central Bank slow adopters of digital currency, Trinidad & Tobago Guardian (March 14, 2021).
