Stablecoin issuer / redeemer in Guyana

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.

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.

Reference: National Payment System Act 2018 (Act No. 3 of 2018).

Securities: If a stablecoin offers investment-like features, promises returns, or is structured as a share or debt instrument, it could potentially be classified as a security under the Securities Industry Act. However, most stablecoins are designed to avoid this classification.

Legislation: Securities Industry Act 1998 (Cap. 83:02).

General Digital Asset: Without specific classification, stablecoins might simply be treated as an unregulated digital asset, subject only to general anti-money laundering and counter-financing of terrorism (AML/CFT) laws.

Legislation: Anti-Money Laundering and Countering the Financing of Terrorism Act 2009 (as amended).

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:

Safeguarding customer funds.

Holding reserves in low-risk assets (e.g., central bank deposits, government securities).

Segregation of client funds from operational funds.

The specifics would be detailed in regulations or directives issued by the Bank of Guyana under the powers granted by the Act.

No specific stablecoin issuer license.

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.

The Act specifies requirements for licensing, including capital adequacy, governance, and operational standards.

If the stablecoin activity extended to other financial services (e.g., deposit-taking, lending), the issuer might also fall under the Financial Institutions Act and require a banking or other financial services license from the Bank of Guyana.

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

No specific legislation guaranteeing redemption rights for stablecoins.

However, if a stablecoin were classified and regulated as electronic money, the issuer would be expected to provide for redemption at par (e.g., 1 GYT = 1 GYD) as a fundamental characteristic of e-money. This would be a contractual obligation between the issuer and the holder, and potentially supervised by the Bank of Guyana if the issuer is a licensed payment service provider.

There are no specific rules or regulations addressing algorithmic stablecoins in Guyana.

Criminal prosecution of alleged fraudsters utilizing digital assets.

Public advisories and warnings from the central bank about the risks of cryptocurrency, signaling a cautious and largely unregulated stance.

Regulator/Enforcing Body: Guyana Police Force, Special Organised Crime Unit (SOCU)

Yuri Garcia-Lopez and Ateeka Ishmael were arrested, charged with multiple counts of fraud and operating a pyramid scheme.

Regulator Name: Bank of Guyana (BoG)

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

Ongoing: The BoG's stance has been consistently cautious since then, with similar warnings periodically reiterated through public statements and official channels.

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.

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.

Financial Intelligence Unit (FIU) of Guyana

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.

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.

For legal entities (companies, trusts, etc.): Name, legal form, address, names of directors/partners, proof of incorporation/establishment, and details of the registered office.

Verifying the Customer's Identity: Using reliable, independent source documents, data, or information. This often involves comparing documents against official databases or using digital verification tools.

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:

Customers with complex or opaque ownership structures.

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

Customers from high-risk geographic locations (e.g., countries subject to FATF countermeasures or known for high corruption/crime rates).

Transactions involving high amounts or unusual patterns.

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.

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").

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

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