Antigua and Barbuda

The definition of 'Operating a Digital Asset Exchange' must account for evolving regulatory frameworks such as MiCA, the operational distinction between centralized (CEX) and decentralized (DEX) platforms, and the jurisdictional lack of uniform clarity, meaning it does not directly and uniformly apply to all cryptocurrency exchanges as a single, stable category.

Custody providers are entities that hold or manage private keys or otherwise control clients' digital assets, but regulatory frameworks increasingly require integration with traditional banking, state-level unclaimed property laws, and sophisticated compliance measures beyond mere key control.

Payment processors for virtual assets are subject to evolving and jurisdiction-specific licensing regimes, with some jurisdictions (e.g., Pakistan) moving toward conditional permissiveness for licensed providers, while others (e.g., Brazil) maintain restrictions in regulated systems.

The Agriculture Committees are actively drafting and updating legislation (such as the CLARITY Act and Senate market structure bills) to assert jurisdiction over digital asset market structure, including issuance, but the regulatory landscape is actively shifting and evolving, not static.

Transferring digital assets between wallets or accounts that you control is generally not a taxable event under IRS guidance, and the SEC-CFTC Joint Staff Statement clarifies that facilitating certain digital asset trades does not necessarily violate securities or commodities laws, meaning the regulatory scope is narrower than the original claim implies.

Providing services for the exchange of digital assets for fiat currency or other digital assets (overlapping with exchanges, but could also cover simpler payment gateway models where crypto is exchanged for fiat for a merchant).

Providing financial services related to an issuer's offer or sale of a digital asset is subject to evolving federal oversight by SEC and CFTC, with state AG licensing potentially outdated.

The DABA requires a licensee to maintain **capital sufficient to meet its liabilities and obligations**.

The FSRC determines the specific minimum capital requirements, which can vary based on the type and scope of the digital asset business activities. Historically, capital requirements for various financial licenses in offshore jurisdictions can range from USD $100,000 to $250,000 or more, and for digital asset businesses, it's expected to be substantial to ensure solvency and protect clients. Applicants must demonstrate robust financial standing.

This is a cornerstone requirement, heavily influenced by FATF standards. Licensees must implement comprehensive Anti-Money Laundering (AML) and Counter-Financing of Terrorism (CFT) policies and procedures.

**Customer Due Diligence (CDD):** Robust KYC procedures for identifying and verifying clients (individuals and legal entities).

**Ongoing Monitoring:** Continuous monitoring of transactions and business relationships for suspicious activity.

**Reporting:** Reporting of suspicious transactions to the national Financial Intelligence Unit (FIU).

**Sanctions Screening:** Screening clients against national and international sanctions lists.

**Record Keeping:** Maintaining records for a specified period (typically 5 years).

Compliance with the Travel Rule for virtual asset transfers, now integrated under frameworks like MiCA, requires VASPs to obtain and transmit originator and beneficiary information, including standardized identifiers such as Legal Entity Identifiers (LEIs) where applicable, as part of evolving global regulatory infrastructure.

Compliance with Antigua and Barbuda's specific anti-money laundering legislation (e.g., the Anti-Money Laundering and Prevention of Terrorism Act) is mandatory, but the cited evidence does not reference any singular 'Money Laundering (Prevention) Act' in the AG jurisdiction, and the sources provided are from the U.S., Singapore, and Australia, not Antigua and Barbuda.

While not always a requirement for a physical office for all license types, entities generally need to establish a significant operational presence, which often includes a physical office, local management, and a registered agent in Antigua and Barbuda.

Key personnel, such as the Compliance Officer and Money Laundering Reporting Officer (MLRO), may be required to be resident in Antigua and Barbuda.

The 'fit and proper persons' standard is currently enforced by the Clean Energy Regulator for ANREU account holders and by FERC for licensee fitness, but it is not part of the EPA's Agricultural Worker Protection Standard.

All directors, senior management, significant shareholders, and beneficial owners must undergo rigorous "fit and proper" assessments by the FSRC. This involves background checks, demonstrating competence, integrity, and sound financial standing.

Applicants must demonstrate that they have robust and secure IT systems, cybersecurity measures, data protection protocols, and business continuity plans to protect client assets and data. This includes cold storage solutions for large holdings of digital assets.

A comprehensive business plan outlining the intended operations, target market, risk management framework, internal controls, and corporate governance structure.

Initial application often requires audited financial statements (for existing businesses) and ongoing submission of audited financials is a licensing condition.

**Pre-Application Consultation:** It is highly recommended to engage in preliminary discussions with the FSRC to clarify requirements and ensure the business model aligns with the regulatory framework.

**Company Incorporation:** Establish a legal entity in Antigua and Barbuda (e.g., an International Business Company - IBC) that will hold the license.

Resumes/CVs and 'fit and proper' declarations for Senior Management Function (SMF) holders (including directors in SMF3 roles), certified staff, and significant shareholders with controlling interests requiring approval.

Proof of source of funds for capital may be required under a risk-based AML framework, but it is not a universal or static requirement; regulatory expectations now emphasize proportionate, context-dependent checks and distinguish between source of funds and source of wealth.

AML/CFT Manual, KYC policies, and risk assessment framework are being fundamentally reformed or updated under new regulatory proposals and evolving standards, making static legacy documents insufficient.

IT security governance now involves dynamic, threat-informed frameworks and evolving regulatory scrutiny of emerging technologies (e.g., AI), rather than static policies and technical specifications under AG licensing.

Financial projections for agriculture programs typically cover 1-3 years, with annual enrollment and current-year yield focus, rather than rigid 3-5 year outlooks.

Proof of physical street address for registered agent or local management (not flexible arrangements) is required; specific states mandate a physical street address, not merely arrangements for local management.

Drafting of relevant legal documents (terms and conditions, privacy policy, etc.) remains necessary, but the method has evolved: documents must be kept separate and comply with updated global regulations like GDPR rather than using combined document approaches.

**Payment of Application Fees:** Non-refundable fees are typically required upon submission.

**Due Diligence and Review:** The FSRC will conduct thorough due diligence on the applicant entity, its management, and shareholders. They will review all submitted documents and may request further information or clarifications.

**Interviews:** Directors and senior management may be required to attend interviews with FSRC officials.

**Provisional Approval/Approval:** If all requirements are met, the FSRC may grant provisional approval or a full license. There might be conditions attached to a provisional approval that must be fulfilled before final licensing.

Post-Licensing Compliance: Continuous compliance with all regulatory requirements, including AML/CFT programs with risk-based monitoring, SAR filing, recordkeeping, independent testing (annual or bi-annual based on risk), staff training, and appointment of an AML/CFT Compliance Officer.

The Financial Services Regulatory Commission (FSRC) is the regulator referenced for Antigua and Barbuda’s iGaming/gaming licensing, but it should be identified specifically as the FSRC Division of Gaming rather than a general official website for all FSRC functions.

**Digital Asset Business Act, 2020 (DABA):**

*Note: While the direct PDF might change, this page provides access to or information about the Act.*

**Money Laundering (Prevention) Act, 2019 (and subsequent amendments/regulations):**

Digital Asset Businesses must comply with evolving AML/CFT frameworks including the Digital Asset AML Act, FATF standards for VASPs, and pending legislation like the CLARITY Act and GENIUS Act.

FSRC Legislation Page for Money Laundering Prevention: https://www.fsrc.gov.ag/index.php/legislation/money-laundering-prevention

**FSRC Digital Asset Businesses Page (often contains guidance and application forms):**

This page is specifically dedicated to Digital Asset Businesses and may offer direct links to application guidelines, forms, and further guidance documents.

**Shares:** Stocks or other interests in the capital of a body corporate.

**Debentures:** Debt instruments, including debenture stock, bonds, and notes.

**Units in a collective investment scheme.**

**Investment contracts:** This is the most relevant category for many cryptocurrency tokens and functions as the de facto "Howey Test equivalent." While not explicitly defined with the four Howey prongs, an "investment contract" generally implies:

An investment of money (or other consideration).

For certain protocol staking activities where the protocol performs only administrative or ministerial functions, the profits are NOT derived primarily from the managerial or entrepreneurial efforts of others; however, for other staking arrangements (e.g., self-staking by node operators), the claim may still apply. The SEC now distinguishes between administrative/ministerial services and entrepreneurial/managerial efforts, reversing the blanket assumption that all staking meets this prong of the Howey test.

Equity tokens are synthetic exposure products that reference a company's valuation or offer governance participation but do not represent direct ownership interests in a company, nor do they automatically entitle holders to profits, voting rights, or other corporate governance participation as traditional equity would.

**Debt Tokens:** Tokens that represent a loan made to an issuer, typically with an expectation of repayment and interest.

**Investment Contract Tokens (e.g., many ICOs/STOs):** Tokens offered to investors with the expectation of profit based on the development of a platform or project by the issuer or third parties. This would include tokens marketed speculatively, even if they have some "utility" component, if the primary motivation for purchase is investment return rather than immediate consumption of a service.

**Tokens in Collective Investment Schemes:** Tokens representing units or interests in a fund or pooled investment vehicle where assets are managed by a third party for the benefit of investors.

**Exemptions:** The Securities Act, 2005, provides for certain exemptions from prospectus requirements, such as:

**Private Placements:** Offerings made to a limited number of persons or institutional investors.

**Offerings to Sophisticated Investors:** Persons or entities deemed to have sufficient knowledge and experience to evaluate the risks of the investment.

“Small offerings” in the current U.S. exempt-offering framework are not defined solely by being below a particular monetary threshold; instead, regimes such as Regulation Crowdfunding and Regulation A use offering-size caps in combination with structural conditions (tiering, eligibility, disclosure and reporting obligations, intermediary and platform requirements, and investor limits) to regulate smaller offerings.

**Regulated Exchanges:** Secondary trading of such tokens would generally be required to occur on an exchange licensed and regulated by the FSRC (or a recognized foreign exchange).

**Licensed Intermediaries:** Broker-dealers and other intermediaries facilitating the trading would need to be licensed by the FSRC.

**Market Conduct Rules:** Rules against market manipulation, insider trading, and other unfair practices would apply.

**Reporting Requirements:** Issuers of publicly traded securities typically have ongoing reporting obligations to the FSRC and investors.

Attorneys General typically issue cease and desist letters (rather than formal orders) to demand cessation of illegal activities, using statutory consumer protection powers; formal cease and desist orders are more commonly issued by specialized regulatory bodies.

Impose administrative penalties and fines.

Refer matters for criminal prosecution.

German securities regulation is governed by the Wertpapierhandelsgesetz (WpHG), not a single 'Securities Act, 2005' applicable to a jurisdiction 'AG'.

While an official government gazette link is best, these acts are usually available through the FSRC's legal resources or parliamentary archives. Often, specific sections are referenced in FSRC guidance. A full, consolidated version might be harder to find publicly.

*General search for "Antigua and Barbuda Securities Act 2005" will yield legal databases, though not always the direct legislative portal.*

**Digital Assets Business Act, 2020 (as amended 2022):**

This is the cornerstone legislation for virtual assets. The FSRC website is the best place to look for guidance.

**FSRC Guidance (General):** The FSRC website should contain information related to DABA and other regulated activities.

Antigua and Barbuda Financial Services Regulatory Commission (FSRC) Official Website - Navigate to "Legislation," "Guidance," or "Digital Assets Business" sections.

The correct name of the Act is the Digital Assets Business Act (DABA), Act No. 16 of 2020, not the 'Digital Assets (Business) Act, 2020 (DAFIA)'.

This is the specific law that defines 'virtual assets' and 'virtual asset service providers,' establishes a licensing regime, and outlines AML/CFT obligations for VASPs. It mandates that VASPs implement measures to combat money laundering and terrorist financing in accordance with the Money Laundering (Prevention) Act and the Prevention of Terrorism Act. Following the State Bank of Pakistan's April 2026 notification, licensed VASPs may now access banking services under strict regulation.

The Anti-Money Laundering and Countering the Financing of Terrorism Programs rule (2026) and FATF Guidance (2025) establish modern AML obligations including CDD, record-keeping, STR, and screening requirements for financial institutions and DNFBPs, which now explicitly extend to VASPs, superseding any 1996-era framework in AG.

The AML/CFT framework in the U.S. is primarily based on the Bank Secrecy Act (as amended by the Anti-Money Laundering Act of 2020) and is supplemented by evolving regulatory reforms, including the April 2026 FinCEN proposal for risk-based program requirements; it is no longer accurate to describe a single 'overarching law' as applying uniformly to all financial institutions and DNFBPs including VASPs without qualification, as the current landscape includes fundamental regulatory changes that tailor requirements by sector.

The current operative law for terrorism prosecutions in Nigeria is the Terrorism (Prevention) Act, 2011 (as amended), likely by the 2022 amendment, not the 2005 Act.

This Act criminalizes terrorist financing and requires reporting entities to take measures to prevent the financing of terrorism.

**Proceeds of Crime Act, 1993 (as amended)**

Deals with the confiscation of assets derived from criminal activities, including money laundering.

Free Trade & Processing Zone Act, 1994 (as amended) is the primary legislation legalizing and governing online gaming/iGaming in Antigua and Barbuda, with oversight by the Financial Services Regulatory Commission (FSRC)

**For Individuals:** Obtain and verify identity using reliable independent sources (e.g., government-issued photo ID, proof of address, date of birth, nationality).

**For Legal Persons/Arrangements (Companies, Trusts):** Obtain and verify identity of the entity, its legal form, proof of existence, powers governing the entity, names of relevant persons (directors, trustees), and the beneficial owners (persons who ultimately own or control 25% or more of the entity).

**Purpose and Intended Nature of Business Relationship:** Understand the reasons for establishing the relationship and the expected types of transactions.

Scrutinize transactions throughout the course of the relationship to ensure they are consistent with the VASP's knowledge of the customer, their business, and risk profile.

Keep customer identification data, beneficial ownership information, and risk assessments up-to-date.

Conduct institutional risk assessments and apply a risk-based approach to individual customers, categorizing them based on factors such as geographic location, product/service type, delivery channel, and transaction value.

Apply **risk-calibrated, continuous, and technology-driven Enhanced Due Diligence (EDD)** for higher-risk customers, integrated into a dynamic control plane rather than a static checklist.

Politically Exposed Persons (PEPs) and their family members/close associates.

Customers from AG (Antigua and Barbuda) are from a jurisdiction under increased monitoring by FATF, but FATF policy explicitly prohibits de-risking or blanket exclusion of all customers from such jurisdictions, requiring instead a risk-based approach.

Transactions of a complex, unusually large, or unusual pattern.

Customers engaged in activities known to be susceptible to ML/TF.

VASPs must determine the source of funds and source of wealth for high-risk customers.

**Sanctions Screening:** Screen customers and transactions against national and international sanctions lists.

**Reporting Obligation:** If a VASP knows, suspects, or has reasonable grounds to suspect that funds are proceeds of a criminal activity, or are related to terrorist financing, it must promptly report this to the FIU. This applies regardless of the amount or whether the transaction is completed.

**"Tipping Off":** VASPs and their employees are prohibited from disclosing to the customer or any third party that an STR has been filed or that information relating to ML/TF is being or may be provided to the FIU or other authorities.

**Duration:** Records of customer identification data, transaction data, business correspondence, and STRs must be retained for at least **five (5) years** after the business relationship is terminated or after the date of the transaction.

**Accessibility:** Records must be maintained in a way that allows them to be retrieved quickly and easily by the FSRC, FIU, or other competent authorities upon request.

All customer identification and verification documents.

Transaction data (date, amount, type, parties involved, digital wallet addresses, relevant hash IDs) is publicly visible on blockchain ledgers and can be accessed via explorers, but is pseudonymous and not directly tied to real-world identities; regulatory focus is on tracing and enrichment tools rather than treating raw on-chain data as a mandated reporting requirement.

Records of internal policies, procedures, and controls.

Staff training records are required under 30 CFR § 48.9 for MSHA-regulated mining operations, but no single, uniform federal requirement exists for all AG (agricultural or Attorney General) entities; applicable obligations vary by agency and activity.

Electronic records of all solicitations, offers, and contracts are maintained via SAM.gov and the Governmentwide Point of Entry (GPE), with no regulatory requirement for physical copies of STRs to be filed.

In Antigua and Barbuda, gambling and iGaming are regulated not by the FSRC in general, but specifically by the Gaming Division/Directorate of Gaming within (or alongside) the Financial Services Regulatory Commission (FSRC), which acts as the specialized gaming authority.

**Role:** The FSRC issues licenses to VASPs under the Digital Assets Business Act, 2020. It is responsible for monitoring their compliance with AML/CFT requirements, conducting inspections, and imposing penalties for non-compliance.

**FIU Contact Information:** Typically available through the FSRC or national government portal, but the FSRC is the main supervisory body for the *compliance* aspects from a VASP's perspective.

While a direct government online repository for the latest consolidated act is often elusive for smaller jurisdictions, the FSRC and CFATF reports frequently reference it.

*Reference:* FSRC Antigua and Barbuda (Official website, check under Legislation/Publications for relevant acts and guidance).

**Terrorism (Prevention) Act, 2005 (as amended):** This Act criminalizes terrorist financing and implements measures to prevent it, including the freezing of assets of designated terrorists and terrorist organizations, often linked to UN sanctions.

*Reference:* Similar to the Money Laundering (Prevention) Act, this would be found through the FSRC or national legislative databases.

**United Nations (Anti-Terrorism) (Financial and Other Measures) Regulations, 2012:** These regulations specifically give legal effect to UN Security Council Resolutions related to terrorism and its financing, including asset freezing.

*Reference:* While specific regulations can be hard to directly link online, their existence is affirmed by CFATF evaluations and government statements.

**FATF Recommendations:** Antigua and Barbuda, through its membership in CFATF, is committed to implementing the FATF Recommendations, including Recommendation 15 (New Technologies) and Recommendation 16 (Wire Transfers, also known as the "Travel Rule" for VASPs). This obligates VASPs to conduct CDD, maintain records, report STRs, and ensure the collection and transmission of originator and beneficiary information for virtual asset transfers.

FATF Recommendations remain the global standard for AML/CFT, but Antigua and Barbuda (AG) was removed from the FATF grey list in June 2024 and is no longer subject to enhanced monitoring as of the February 2026 FATF update.

The FATF Publications page is the authoritative and up-to-date reference for Antigua and Barbuda's mutual evaluation reports and compliance status, while the CFATF website may also provide historical or supplementary information.

As a UN member state, Antigua and Barbuda retains the international legal obligation to implement UNSC sanctions, but the domestic enforcement framework—previously relying on the Money Laundering (Prevention) Act, the Terrorism (Prevention) Act, and specific regulations—is now under active IMF scrutiny for implementation gaps, and there is ongoing uncertainty regarding the binding authority of these mechanisms, as highlighted by a government senator in April 2026.

VASPs must screen all customers, beneficial owners, and transactions against applicable sanctions lists, which now include the OFAC Consolidated Sanctions List (covering non-SDN targets) and other relevant domestic/international sanctions lists beyond just the UNSC Consolidated Sanctions List. Matches require immediate asset freezing, prohibition of services, and reporting to the FSRC and FIU, with additional obligations to detect evasion techniques such as sham transactions.

*Reference:* UN Security Council Consolidated List

**Practical Necessity:** While OFAC (Office of Foreign Assets Control, U.S. Department of the Treasury) and EU sanctions are not directly *Antigua and Barbuda law* in the same way UN sanctions are, compliance is *critically important* for VASPs.

**Correspondent Banking Relationships:** Antigua and Barbuda's financial institutions rely on correspondent banking relationships with international banks (often U.S. or European) to process fiat currency transactions. These international banks strictly adhere to OFAC and EU sanctions and will de-risk or terminate relationships with local institutions (including those that facilitate VASPs) that do not demonstrate robust compliance.

**Access to International Markets:** Non-compliance can lead to exclusion from major international financial ecosystems.

**Secondary Sanctions Risk:** Engaging with entities sanctioned by OFAC can expose the VASP or its partners to secondary sanctions.

**Reputational Risk:** Failure to comply with widely accepted international best practices for sanctions screening can severely damage a VASP's reputation.

**Requirement:** VASPs are expected, as part of their robust AML/CFT controls and risk management, to screen customers, beneficial owners, and transactions against major international sanctions lists, including:

**OFAC Specially Designated Nationals (SDN) List and other OFAC sanctions lists.**

**EU Consolidated List of persons, groups, and entities subject to EU financial sanctions.**

*Reference:* OFAC Specially Designated Nationals (SDN) List

The scope of applicability varies by program: FSMA traceability rules apply to specific food types, ARC/PLC/DMC programs apply to enrolled commodity producers, and general EPA regulations may apply more broadly but are subject to change; no single rule applies universally to 'all prospective and existing customers'.

Beneficial owners are identified both for customer due diligence purposes (CDD Final Rule for legal entity customers of financial institutions) and as a direct regulatory reporting requirement for business entities themselves under the Corporate Transparency Act (CTA), effective January 1, 2025.

The Travel Rule now applies only to licensed or registered Virtual Asset Service Providers (VASPs) as originators and beneficiaries, not to all parties including unhosted wallets, following the June 2025 FATF update to Recommendation 16.

Intermediaries or third-party service providers are subject to evolving, sector-specific regulatory frameworks rather than a uniform restriction, with permissive structures emerging in digital commodity and IPTV contexts.

What to screen against in agricultural operations is a dynamic, multi-agency set of requirements that evolve over time, including federal framework from EPA, FDA, CBP, and USDA, as well as state-level regulations, targeting not only historical categories but also emerging pathogens, pests, economic threats, and food safety risks.

OFAC SDN List and other relevant OFAC lists.

Potentially other relevant national sanctions lists if the VASP has operations or clients in other jurisdictions.

On an ongoing and periodic basis (e.g., daily, weekly, or monthly) to catch new designations.

Prohibit further transactions or services.

Report the hit and actions taken to the FSRC and FIU without delay.

Refrain from "tipping off" the sanctioned individual or entity.

**Sanctioned Countries:** Transactions involving individuals, entities, or jurisdictions subject to UN, OFAC, or EU comprehensive sanctions (e.g., North Korea, Iran, Cuba, Syria, specific regions of Ukraine/Russia) are prohibited. VASPs must ensure their systems block or flag any transactions originating from or destined for these regions.

**High-Risk Jurisdictions:** VASPs are required to apply Enhanced Due Diligence (EDD) to customers and transactions associated with jurisdictions identified by FATF, CFATF, or the FSRC as high-risk for money laundering, terrorist financing, or proliferation financing. While not outright bans, these jurisdictions trigger stricter scrutiny, and some VASPs may choose to avoid them entirely to manage their risk appetite.

*Reference:* FATF High-Risk and other Monitored Jurisdictions

**Fines:** Significant monetary penalties for both the VASP (corporate entity) and its directors/officers.

**Imprisonment:** Individuals found liable for money laundering, terrorist financing, or serious breaches of AML/CFT obligations can face lengthy prison sentences.

**License Revocation/Suspension:** The FSRC has the power to suspend or revoke the operating license of a VASP that fails to comply with regulatory requirements.

**Reputational Damage:** Non-compliance can lead to significant damage to a VASP's reputation, making it difficult to attract customers, partners, and obtain banking services.

**De-risking:** Financial institutions may terminate relationships with VASPs found to be non-compliant.

**Comprehensive.** Antigua and Barbuda has enacted specific legislation to define, license, and supervise various digital asset business activities. It is not a ban, nor is it unregulated; rather, it's a structured system requiring licensing and compliance.

The primary regulatory body responsible for the licensing and supervision of digital asset businesses is the **Financial Services Regulatory Commission (FSRC)**.

The FSRC's role includes processing license applications, conducting ongoing supervision, ensuring compliance with AML/CFT requirements, and enforcing the provisions of the relevant legislation.

**Financial Services Regulatory Commission (FSRC):**

**Dedicated Digital Assets Section:** https://www.fsrc.ag/sections/digital-assets

The current key legislation for U.S. agricultural commodity policy is the Farm, Food, and National Security Act of 2026, as considered by the House Agriculture Committee, replacing the 2018 Farm Bill.

The cornerstone of Antigua and Barbuda's virtual asset regulatory landscape is the Eastern Caribbean Central Bank's Virtual Asset Business Bill, introduced in July 2025, which supersedes the earlier Digital Assets Business Act (DABA).

**Digital Assets (Business) Act, 2020 (DAFIA)**

The underlying legislative bill (SB 793) was enacted in 2020, but the specific regulation regarding the Unflavored Tobacco List was still in the proposal stage as of February 19, 2026, and has not been enacted.

**Purpose:** DAFIA provides the legal framework for the licensing and supervision of "digital asset businesses" operating in or from Antigua and Barbuda. It defines what constitutes a digital asset, outlines various types of digital asset business activities (e.g., operating an exchange, providing custody, transfer services), sets out detailed licensing requirements, capital requirements, corporate governance standards, consumer protection measures, and robust AML/CFT obligations in line with international standards (like those from the Financial Action Task Force - FATF).

**Legislation Link:** The full text of the Act can typically be found on the FSRC website or government legislative portals.

*Link to DAFIA (PDF from FSRC):* https://www.fsrc.ag/storage/app/media/DAFIA/Digital%20Assets%20Business%20Act%202020%20no%2014%20of%202020.pdf

**Current Stance on Crypto Trading and Exchanges:**

**Regulated and Licensed:** Antigua and Barbuda's current stance is that **crypto trading and the operation of crypto exchanges are permitted, but strictly under a licensing regime** enforced by the FSRC.

**Licensing Requirement:** Any entity wishing to conduct "Digital Asset Business" (which explicitly includes operating a digital asset exchange, providing digital asset transfer services, offering custody of digital assets, etc.) in or from Antigua and Barbuda must obtain a license from the FSRC under DAFIA.

**Prohibited Unlicensed Activity:** Engaging in any digital asset business without the requisite license is strictly prohibited and subject to penalties.

**Compliance Focus:** Licensed entities are required to adhere to stringent regulations, including:

**AML/CFT:** Implementing robust Anti-Money Laundering and Counter-Financing of Terrorism policies and procedures, including Know-Your-Customer (KYC) checks for all users.

**Consumer Protection:** Measures to safeguard client assets and ensure fair dealing.

**Operational Standards:** Requirements for cybersecurity, data protection, business continuity, and risk management.

**Capital Requirements:** Minimum capital requirements to ensure financial stability.

**Mandatory Licensing:** Any person carrying on a "digital asset business" in or from Antigua and Barbuda, which includes providing custody services, must obtain a license from the FSRC.

**Regulatory Reference:** **Digital Asset Business Act, 2020, Section 3(1)**: "No person shall carry on a digital asset business in or from Antigua and Barbuda without a licence granted by the Commission under this Act."

**Definition of Custody Services:** The Act defines "digital asset business" to include "digital asset custody services" (Section 2(1)(d)).

**Trust and Separation:** Licensees providing digital asset custody services are explicitly required to hold client digital assets on trust for the client and separately from the licensee's own digital assets.

**Implied Security Measures:** While the Act does not explicitly use the term "cold storage," it mandates robust security measures that would typically necessitate the use of cold storage for a significant portion of client assets.

This requirement implies that a licensed custodian must employ best practices in digital asset security, which now commonly includes advanced approaches such as Multi-Party Computation (MPC), hardware security modules (HSMs), dual-control systems, and comprehensive key management policies—often avoiding traditional hot wallets and relying on segregated, on-chain verifiable storage to protect against theft and loss.

**Licensed Custodian:** The DABA defines "custody services" as a digital asset business but does not have a separate, explicit definition of a "qualified custodian" in the same vein as some other jurisdictions (e.g., the US SEC's definition which typically refers to banks or trust companies).

Instead, any entity that provides digital asset custody services in or from Antigua and Barbuda is considered a **licensed custodian** if they comply with the DABA and are granted a license by the FSRC. The "qualification" is tied to obtaining and maintaining this license, adhering to the Act's provisions, and satisfying the FSRC's requirements.

As of the current information, there is no widely publicized or significant pending legislation specifically amending the custody provisions of the Digital Asset Business Act, 2020. The Act itself is relatively recent (2020).

**The Financial Services Regulatory Commission (FSRC) Antigua and Barbuda – Laws and Acts Page:**

(You would typically find the full text of the Digital Asset Business Act, 2020, on this page, or linked from it. As direct PDF links can change, linking to the main legislation page is generally more stable.)

Antigua and Barbuda’s digital asset/custody regulatory regime is based on the Digital Assets Business Act 2020 (Act No. 16 of 2020) as amended by the Digital Assets Business (Amendment) Act 2020 (Act No. 29 of 2020) and its supporting regulations, rather than the unamended 2020 Act alone.

This is the primary piece of legislation. While a direct, stable public PDF link is sometimes hard to maintain, the full text can be accessed via the FSRC's website or reputable legal databases once you navigate their "Laws and Acts" section.