Cryptocurrency is legal in Barbados, though the country does not yet have specialized legislation specifically regulating cryptocurrency activities. The Financial Services Commission of Barbados oversees cryptocurrency operations, requiring companies to comply with general financial sector regulations including anti-money laundering and counter-terrorist financing measures (1). Crypto businesses must implement Know Your Customer procedures and promptly report suspicious transactions while operating under standard business registration processes rather than obtaining specialized crypto licenses.
The Financial Services Commission's AML/CFT guidelines specifically address Virtual Asset Service Providers, establishing enhanced due diligence requirements and red flag indicators for cryptocurrency-related transactions. Financial institutions dealing with VASPs must implement robust risk-based approaches incorporating customer identification and verification procedures, ongoing monitoring requirements, and compliance with proliferation financing obligations (1). These measures ensure transparency and security while preventing the use of digital assets for illicit activities including money laundering and terrorism financing.
"Financial institutions must see AML/CFT/CPF as part of their overall risk management strategy. Money laundering, terrorist financing and financing of proliferation expose a financial institution to transaction, compliance and reputation risk."
In December 2024, Barbados demonstrated its commitment to cryptocurrency transparency by signing key agreements to implement the Crypto-Asset Reporting Framework and the updated Common Reporting Standard. Revenue Commissioner Louisa Lewis-Ward formalized this commitment at the 17th Global Forum on Transparency and Exchange of Information for Tax Purposes Plenary Meeting (2). Barbados aims to implement the CARF framework in 2027, with the first exchange of information scheduled for 2028, ensuring comprehensive data on crypto-asset transactions to support effective tax compliance initiatives.
Source:
https://www.fsc.gov.bb/viewPDF/documents/2023-05-16-19-31-31-financialservicescommissionamlcftguidelines-revisedoctober2021.pdf
https://bra.gov.bb/News/Press-Releases/Barbados-Joins-Global-Leaders-in-C
Last updated: 18-10-2025 Disclaimer: This article does not provide legal advice. If you need legal advice, please contact an attorney directly.
