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Antigua’s bill regulating cryptocurrency is passed by lower parliament

May 28, 2020

The House of Representatives of Antigua and Barbuda passed a law regulating cryptocurrency on May 27. With this calculation, they have taken steps to become destinations for digital goods in the Caribbean.

The regulatory framework called “The Digital Assets Business Bill 2020” aims to regulate cryptocurrency companies that build their business on the island and protect both exchanges and their customers.

Critical contributions to the bill include the rule that all digital asset companies in Antigua and Barbuda must be licensed to “issue, sell, or redeem virtual currencies,” act as a payment or electronic exchange service, and provide services from Custody of wallets, among others.

Antigua’s bill regulating cryptocurrency is passed by lower parliamentAntigua’s bill regulating cryptocurrency is passed by lower parliament

Failure to comply with the law can result in fines of up to $ 250,000 for companies. Managers can also be exposed to criminal charges, including prison terms.

Actors from the cryptocurrency industry were involved in advising the bill

The bill would empower the country’s Financial Services Regulatory Commission (FSRC) to ensure that cryptocurrency companies apply the legal framework.

The Ayre Group, nChain, the Bayesian Fund, and the Bitcoin Association were some of the industry members who advised the government on the framework.

Calvin Ayre, economic technology envoy in Antigua and Barbuda, was an active voice in the country for the introduction of cryptocurrencies and the establishment of a regulatory infrastructure.

On his website, Ayre said the following:

“With this law, Antigua is now at the top of the list of countries that will benefit from the explosion of inquiries and tokenizations that are taking place before our eyes at BSV.”

The final steps before final approval

The final obstacle to the passage of the law will be the Antigua Senate, which some see as a mere formality.

In the Caribbean, the East Caribbean Central Bank (ECCB) proposed a pilot program in 2018 to issue a blockchain-based digital currency that is supported by the central bank and adheres to Antigua and Barbuda and that also uses the common money, the central Caribbean dollar.

The DXCD pilot program consists of the following phases: development and testing, followed by launch and implementation in the Caribbean countries for approximately six months. This could happen between June and December 2020.

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