Jamaica debates new licensing framework for crypto firms

The Jamaican House of Representatives has commenced debates on the Virtual Assets Service Providers Act. This proposed legislation aims to establish a formal licensing and supervisory framework for businesses dealing in digital currencies.

The Act would require any firm exchanging cryptocurrency for fiat currency, transferring digital assets between wallets, or holding private keys for customers to obtain a license from the Financial Services Commission (FSC). This requirement applies to businesses serving Jamaican residents regardless of where the firm is based. Minister of Finance and the Public Service Fayval Williams stated that operating without a license would be a criminal offense, noting, “We are not legislating because virtual assets are good or bad. We are legislating because they are here and our people are exposed.”

Under the framework, licensed providers must adhere to international anti-money laundering and counter-terrorist financing standards. This includes verifying customer identities, monitoring transactions, reporting suspicious activity, and complying with the “travel rule,” which requires sender and recipient information to accompany digital-asset transfers. While the law introduces strict oversight similar to traditional banking, it does not grant cryptocurrency legal-tender status; the Jamaican dollar remains the sole legal tender.