If you are looking for an offshore jurisdiction to license your crypto business in 2025, Saint Vincent and the Grenadines is a great option. Despite being a small country in the Caribbean, SVG has more benefits to offer to crypto companies than you might think. We are going to dwell on everything you need to know before obtaining a crypto license in SVG.
What specific crypto activities will your business engage in?
SVG offers one type of crypto legal permit, which is called the Virtual Asset Business license. Once you pass all the checks and obtain the SVG crypto license, you will be able to provide such services as crypto-to-crypto and crypto-to-fiat exchange, transfers of virtual assets, custodial services, asset management, and more. If you have another, more complex crypto activity in mind, it might need additional permission from the Financial Service Authority of SVG before being carried out.
What are the current and anticipated regulatory requirements for your chosen crypto activities in SVG?
All the blockchain-related activities in Saint Vincent and the Grenadines are supervised by the Saint Vincent and the Grenadines Financial Services Authority (SVGFSA), which is also responsible for granting crypto licenses to businesses. It works hand-in-hand with the Saint Vincent and the Grenadines Financial Intelligence Unit (SVGFIU), which deals with the financial and AML/CFT compliance of the licensees. The crypto regulatory framework in SVG is based on the 2022 Virtual Asset Business Act. The due diligence rules in the country correspond to the ones established by the FATF. While the local framework in SVG is still being refined, we do not expect any major changes in the regulations in the upcoming months.
What are the financial and operational requirements for obtaining a crypto license in SVG?
When it comes to obtaining a crypto license in SVG, a question that arises naturally is the share capital requirement requested by the regulatory authority. This is the main financial contribution you have to make if you want to register a crypto business locally. The current requirement is depositing 100,000 East Caribbean Dollars to the SVGFSA along with your licensing application fee of 4,000 East Caribbean Dollars. In addition, there is a recurring fee of 12,000 East Caribbean Dollars that must be paid each year to keep the license active and avoid revocation.
What are the tax implications of operating a crypto business in SVG?
Saint Vincent and the Grenadines is an especially advantageous business location for companies that plan to operate outside the island. All the income generated outside SVG is exempt from taxation in the country. At the same time, if you plan to provide crypto services locally, your profit will be subject to a 30% tax. In addition, dividends in SVG are taxed at 15%.
What are the risks and challenges associated with operating a crypto business in SVG?
Running a cryptocurrency business in SVG comes with challenges like regulatory uncertainty due to the absence of specific crypto laws, creating potential risks for the credibility and reputation of your company. Businesses must still comply with general financial and AML laws while facing reputational risks associated with the jurisdiction’s offshore financial reputation. Another hurdle is securing a bank account since not a lot of banks are willing to cooperate with crypto companies, especially the ones registered in an offshore jurisdiction.
What are the advantages of obtaining a crypto license in SVG?
As an offshore jurisdiction, SVG provides enough room for independent business conduct, with only basic regular checks with the financial authority. On top of that, it is possible to operate in a completely tax-free manner, as SVG doesn’t tax the income gained outside the country. Besides, the licensing requirements are generally low: minimal AML/CFT compliance checks and a low recurring licensing fee compared to other countries, both offshore and onshore.
What are the alternative jurisdictions for obtaining a crypto license?
In case you are looking for alternatives to SVG as a jurisdiction to license your crypto business, there might be some feasible options. If you need a non-demanding offshore country with a well-established crypto framework, pay attention to Costa Rica, El Salvador, or Mauritius. Costa Rica has minimal requirements but a steadily growing reputation on the international market, El Salvador is known as a progressive and incentivizing “crypto” country, and Mauritius offers 6 classes of crypto licenses for different types of activities.
How can you ensure compliance with all applicable laws and regulations in SVG?
The best way to ensure compliance with all applicable laws and regulations in SVG is to engage a qualified legal expert. Such a professional will help you navigate the legal framework properly while keeping an eye on the potential changes that can impact your business at the same time. Personally, you must stay informed not only on local but global regulatory changes and be ready to align your business operations with them at any given time. Finally, regular audits and proactive communication with regulatory authorities further ensure alignment with the law.
