Crypto license in Barbados
Barbados, known not only as a popular tourist destination but also as a jurisdiction favorable for the development of crypto-business, is actively innovating in the field of digital currencies – the country is confidently moving towards the creation of its central banking cryptocurrency. Gofaizen & Sherle offers comprehensive support for obtaining a crypto license, providing a reliable and effective start for your business in this promising industry.
Barbados today is a dynamic jurisdiction where the government actively promotes innovative projects and creates a favorable business climate. The country, traditionally known as a popular tourist destination, is striving to become a leader in financial technology and digital innovation in the Caribbean region, which opens up new opportunities for business development.
The jurisdiction has created a legal but highly regulated environment for the use of cryptocurrencies. The legislation allows digital assets to be handled legally, subject to anti-money laundering (AML), countering the financing of terrorism (CFT), and Know Your Customer (KYC) requirements. This approach ensures a high level of transparency and security of transactions while supporting innovation and stimulating the development of the fintech sector.
Crypto businesses in Barbados operate within a strict compliance framework that allows for the legal use of digital currencies and the adoption of cutting-edge technologies. One prominent example is Bitt Incorporated, a company specializing in distributed ledger technology and blockchain. It has developed a digital currency (Bitt) pegged to the Barbados dollar, as well as the mMoney mobile app for digital payments. In addition, Bitt Incorporated is actively working to build a settlement network to facilitate cross-border payments in the Caribbean, working with about 12 regional governments.
Along with this, any attempts to circumvent regulatory requirements and fraudulent transactions are strictly suppressed, which contributes to the creation of a stable and secure financial ecosystem in the country.
Advantages of obtaining a crypto license in Barbados
Transparent regulation
A clear regulatory framework for digital assets ensures stable operations, increasing investor and partner confidence. This allows companies to plan their operations with confidence, complying with international standards.
Fast processing
The entire process takes a few months depending on the applicant’s readiness and review timelines.
Loyal taxation
Barbados has favorable rates for international business entities, double tax treaties with several countries, and a low corporate tax rate.
Access to international markets
Barbados’ strategic geographical location allows businesses to easily expand outside the Caribbean and the Americas. This provides additional opportunities to access global markets and attract international customers.
Strong infrastructure and government support
A developed financial and technological base, combined with active government support, creates a sustainable ecosystem for crypto businesses. Such conditions contribute to the rapid implementation of innovative solutions and reliable operation of digital services.
Regional leadership
Barbados has established itself as the leading jurisdiction for cryptocurrencies in the Caribbean region. This status enhances business confidence, helping to attract investment and partnerships on an international scale.
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Crypto regulation in Barbados
Barbados does not yet have specialized legislation regulating cryptocurrency activities. All crypto operators operate under the general laws and regulations applicable to the financial sector.
Key aspects of cryptocurrency regulation in this jurisdiction:
Regulators
Cryptocurrency regulation in Barbados is carried out by several important bodies, each with specific functions. The Central Bank of Barbados plays a key role in overseeing the country’s financial system, including reviewing the potential integration of cryptocurrencies into international reserves and evaluating each crypto project for compliance with the existing legal framework.
The Financial Services Commission, established in 2011 by a related 2010 law, is responsible for supervising and regulating non-bank financial institutions, including cryptocurrency companies. This body enforces strict anti-money laundering and counter-terrorist financing measures, requiring companies to implement “Know Your Customer” procedures and promptly report suspicious transactions.
The Barbados Stock Exchange plays an additional role in the development of the fintech sector and digital assets by introducing mechanisms for trading securitized crypto-tokens and actively participating in FinTech developments.
As for cryptocurrency gambling operators, their activities are regulated under licensing bodies similar to those responsible for traditional online gambling platforms.
Legislative framework
Barbados does not have specific laws aimed solely at regulating cryptocurrencies, so crypto-businesses are subject to general financial and commercial regulations. Companies dealing with digital assets are registered as regular legal entities and are required to comply with the regulations applicable to financial institutions, which include compliance with anti-money laundering (AML) and counter-terrorist financing (CFT) laws. These measures involve strict customer due diligence (KYC) procedures and mandatory tracking of suspicious transactions, which helps mitigate the risks of fraud and financial abuse.
Crypto-business is also subject to consumer protection legislation, which ensures transparency of services provided and protects the interests of citizens.
In addition to traditional regulatory mechanisms, regulators have introduced a regulatory sandbox mechanism that allows companies to test innovative fintech solutions in a controlled environment. This allows not only to assess potential risks but also to adapt the regulatory framework to the rapidly changing digital landscape while supporting the development of the crypto industry.
Licensing and registration
As of today, there is no specific crypto. License in this jurisdiction. Cryptocurrency companies go through the normal registration process and are required to comply with general legal requirements, including the development of AML and CFT procedures and compliance with consumer protection regulations.
Thus, despite the lack of specialized cryptocurrency legislation, Barbados has created a comprehensive legal framework that strikes a balance between fostering innovation and preserving financial stability.
Procedure for obtaining a Cryptocurrency License in Barbados
There is currently no separate license for cryptocurrency operations in this jurisdiction. Companies engaged in cryptocurrency activities are registered under the standard procedure that applies to all businesses. This process involves several steps:
Company registration.
Step 1
The first step is registering the legal entity through the Corporate Affairs and Intellectual Property Office (CAIPO). This includes:
- reserving the company name (applying to the Corporate Affairs and Intellectual Property Office (CAIPO) to verify and reserve a unique name);
- preparing the incorporation documents (the list includes articles of incorporation, registered office details, director details);
- submission of the completed forms to CAIPO along with payment of the registration fee (about 750 USD);
- obtaining a certificate of registration after the application has been reviewed and approved.
In this way, a legal basis for further cryptocurrency activities is formed.
Applying with the Financial Services Commission (FSC).
Step 2
After formalizing the legal entity, the company applies to the FSC, where it submits an application detailing its business model, operational processes, and compliance measures. This step aims to assess the company’s readiness to operate in the cryptocurrency industry and provides control over potential risks.
Verify KYC measures and AML/CFT compliance.
Step 3
The applicant is required to demonstrate robust Know Your Customer (KYC) procedures and anti-money laundering and counter-terrorist financing measures. Regulators scrutinize whether the company’s system meets these requirements to minimize the possibility of illegal transactions.
Once the application has been successfully reviewed and compliance with all regulatory requirements has been confirmed, the company can begin conducting crypto activities. At this stage, obligations for regular reporting and further monitoring of operations are established, ensuring that a high level of transparency and security is maintained in the crypto business.
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Taxation on crypto business in Barbados
Taxation on crypto business in Barbados is carried out within the framework of the general Tax Code of the country, which ensures transparent and balanced regulation of activities in the digital sector.
For legal entities, income derived from cryptocurrency transactions is subject to corporate income tax on a progressive scale that depends on the amount of income. At the same time, companies can deduct expenses related to the receipt of income, which reduces the taxable base. The peculiarity of the legislation is the availability of preferential rates for international business structures, as well as the fact that capital gains are not subject to taxation.
In addition, Barbados applies Value Added Tax (VAT) at a rate of 17.5% on most goods and services, but several financial services are exempt from this tax.
An important element of the tax system is withholding taxes, which are levied on outgoing payments such as dividends, interest, and royalties. Withholding rates depend on contractual terms and may vary to allow for the specifics of international transactions.
As for individual taxation, the income of individuals from transactions with cryptocurrencies, in particular the difference between the purchase and sale price, is subject to income tax on a progressive scale of up to 33.5%. At the same time, foreign residents living in Barbados pay taxes only on income earned in the country, which makes transactions on foreign exchanges outside the scope of local taxation.
Thus, Barbados’ comprehensive tax policy for crypto-business combines the stimulation of innovation and strict control of financial flows, creating conditions for the stable development of the sector within the framework of international standards.
Get up-to-date information about tax laws in Barbados here, or contact our experts.
FAQ about crypto license in Barbados
Is it legal to obtain a crypto license in Barbados?
It is legal to operate a crypto business in Barbados, but there is currently no specialized crypto license – companies are registered as regular legal entities and must comply with general regulations, including AML/CFT requirements and KYC procedures.
What is Bitt?
Bitt is Barbados’ local cryptocurrency, designed to optimize peer-to-peer transactions and increase financial inclusion, fostering digital payments and fintech innovation in the country.
How do I get a cryptocurrency license in Barbados?
To obtain a cryptocurrency license in Barbados, register a company through CAIPO, then submit an application to the FSC detailing your business model and AML/KYC measures. Once verified and approved, you will be able to conduct crypto activities in that jurisdiction.