Crypto-funded debit card in Guyana

Bank of Guyana (BoG) Stance: The Bank of Guyana has generally adopted a cautious stance, issuing public advisories warning about the risks associated with virtual assets (volatility, scams, lack of consumer protection). While they acknowledge the emergence of crypto, they have not yet issued specific regulations or licensing requirements for VASP activities.

March 2021: A prominent advisory reiterating that cryptocurrencies are not legal tender and are unregulated.

No Specific Crypto Licenses: There are no distinct licenses for "crypto exchanges," "crypto custody," or "crypto payment processors" in the same way there are for traditional financial institutions.

Legislation: The National Payment System Act 2018 empowers the Bank of Guyana to regulate payment systems and electronic money. While it doesn't explicitly mention "stablecoins," its definitions of "electronic money" and "payment instruments" could potentially encompass them.

An entity intending to issue a stablecoin that functions as electronic money or a payment instrument would likely be required to obtain a license as a Payment Service Provider from the Bank of Guyana under the National Payment System Act 2018.

E-money/Payment Tokens: This is the most likely classification if a stablecoin is intended to facilitate payments, is denominated in fiat currency (like the Guyanese Dollar or USD), and is redeemable at par.

No specific stablecoin reserve requirements.

If a stablecoin issuer were classified as an "electronic money issuer" or a "payment service provider" under the National Payment System Act 2018, the Bank of Guyana would have the authority to impose prudential requirements, which would likely include:

Legislation: Financial Institutions Act 1995 (Cap. 85:03).

Anti-Money Laundering and Countering the Financing of Terrorism Act 2009 (as amended) (AMLCFTA). This Act, enforced by the Financial Intelligence Unit (FIU) Guyana, serves as the cornerstone for financial institutions and designated non-financial businesses and professions (DNFBPs), which now explicitly include VASPs.

Financial Intelligence Unit (FIU) of Guyana

Identifying the Customer:

For individuals: Name, address, date of birth, national identification number (e.g., National ID card, passport number), and obtaining a copy of the verifying document.

Identifying and Verifying the Beneficial Owner: Determining the natural person(s) who ultimately own or control the customer, or on whose behalf a transaction is being conducted.

Ongoing Monitoring: Continuously scrutinizing transactions made throughout the course of the relationship to ensure they are consistent with the VASP's knowledge of the customer, their business, and risk profile, including, where necessary, the source of funds.

Enhanced Due Diligence (EDD): Applying more stringent measures for higher-risk situations, such as:

New and complex technologies (like certain virtual assets) where anonymity concerns are higher.

"Travel Rule" (FATF Recommendation 16): While specific domestic legislation implementing the travel rule for VASPs might still be evolving, FATF standards require VASPs to obtain, hold, and transmit originator and beneficiary information for virtual asset transfers above a certain threshold (typically equivalent to USD/EUR 1,000). VASPs in Guyana should be preparing for or already implementing this where feasible, especially for cross-border transactions.

Screening for Sanctions: Customers and transactions must be screened against national and international sanctions lists (e.g., UN Security Council sanctions, OFAC sanctions).

Obligation to Report: VASPs are legally obligated to report any suspicious transaction or activity to the FIU, regardless of the amount. A transaction is suspicious if the VASP has reasonable grounds to suspect that it may be related to money laundering or terrorist financing, or if it deviates from the client's usual activity or financial profile.

Timing: Reports must be made promptly, usually within a few working days of forming the suspicion.

No Tipping-Off: VASPs and their employees are prohibited from disclosing to the customer or any third party that a report has been or will be made to the FIU (i.e., "tipping-off").

Customer Identification Records: Copies of identification documents, verification data, beneficial ownership information.

Entity Targeted: Individuals associated with "Coinvest Guyana" and "Accelerated Capital Firm Inc. (ACFI)," particularly Yuri Garcia-Lopez and Ateeka Ishmael, along with others later implicated. Violation Type: Operating a pyramid scheme, obtaining money by false pretences (fraud), unlicensed financial operations. The scheme reportedly solicited investments with promises of high returns, often facilitated through digital means and sometimes referencing digital asset investments as part of its pitch, though its core was a classic Ponzi/pyramid structure.

They were granted bail totaling hundreds of millions of Guyanese dollars (e.g., GYD $200 million each for many charges, reduced to GYD $10 million for some).

Assets were frozen and seized by the state as part of the criminal proceedings.

Trading: If an individual regularly and systematically trades cryptocurrency with the intention of making a profit, these activities could be considered a "business" or "trade." Profits derived from such activities would be taxable as business income.

Corporate Income Tax Rate: The general corporate income tax rate in Guyana is 25% (higher rates apply to specific sectors like commercial banks and telephone companies).

No specific CGT on crypto: There is no separate "capital gains tax" specifically for cryptocurrency in Guyana.

"Business" vs. "Investment": The distinction between an investment and a business is crucial. If the activity is deemed a "business," profits are taxable as income.