Cryptocurrency faces a temporary prohibition in Trinidad and Tobago following the introduction of the Virtual Assets and Virtual Asset Service Providers Bill 2025 in September (2). The bill proposes to ban all virtual asset activities including trading in Bitcoin, NFTs, and other digital assets until December 2027, requiring authorization from the Trinidad and Tobago Securities and Exchange Commission which will not be permitted to grant such authorization during this period (2). Prior to this proposed legislation, cryptocurrencies were neither regulated nor supervised by the government, leaving consumers without legal protection (2).
The Central Bank of Trinidad and Tobago expressed support for the proposed bill, describing it as a measured approach that represents the first phase with a temporary prohibition on virtual asset commercial activities (2). The bill is a critical component of measures intended to address the Caribbean Financial Action Task Force's fifth round of mutual evaluation, specifically focusing on compliance with FATF Recommendation 15, which requires countries to assess and understand risks posed by virtual assets (2). Virtual assets and their underlying technology present opportunities for financial innovation, efficiency, and financial inclusion, but these can be undermined by risks associated with criminal activity evident in publicized investment scams (2).
"In the absence of a comprehensive regulatory framework, this bill represents the first phase with a temporary prohibition on virtual asset commercial activities until December 2027. During this time, the financial sector regulators, together with the Financial Intelligence Unit of TT, will utilise the findings of the risk assessment to develop a proportionate and risk-based framework."
The bill requires existing virtual asset service providers to notify the Securities and Exchange Commission within one month of the law's enactment and cease operations within three months (2). Penalties for unauthorized activities include fines up to five million dollars and imprisonment for five years, with directors and business officers facing similar consequences (2). The Central Bank continues to explore digital currency initiatives, having included Central Bank Digital Currency research in its strategic planning since 2016, while regulators develop a comprehensive framework for future virtual asset regulation (1)(2).
Source:
https://www.central-bank.org.tt/wp-content/uploads/2025/04/wp022025-digital-money-and-the-implications-monetary-system-trinidad-tobago-april2025.pdf
https://newsday.co.tt/2025/09/25/central-bank-supports-ban-on-virtual-assets/
Last updated: 19-10-2025 Disclaimer: This article does not provide legal advice. If you need legal advice, please contact an attorney directly.
