The Grenada Bankers Association (GBA) says it is eagerly awaiting the new Virtual Asset Business Act that will ensure the integrity of the regional financial landscape as new products such as cryptocurrencies and other digital assets become a norm in the financial environment.
“There is no denying that as the financial landscape changes and new products or methods of doing business emerge there is the need for legislative and control frameworks to support and protect our people and preserve our financial space,” the GBA in response to recent report from Global Financial Integrity that as a growing number of consumers adopt the use of crypto-currency, governments in Latin America and Caribbean (LAC) have failed to prevent, detect, investigate and prosecute financial crimes that may arise in this space.
Titled “Cryptocurrencies: A Financial Crime Risk within Latin America and the Caribbean,” the report analyzes the benefits of crypto as well as the potential risks that may emerge, both for consumer financial protection as well as for financial crimes. It also maps the responses from governments, the private sector, academia, and civil society in light of rapidly changing dynamics in the region.
GPA president, Larry Lawrence, said “as it relates to the use of cryptocurrencies, there is currently no finalized regulatory framework in either the Eastern Caribbean Currency Union (ECCU) or many other global countries to govern this area.
“The Eastern Caribbean Central Bank (ECCB) and the Eastern Caribbean Securities Regulatory Commission (ECSRC) have issued warning notices to the public to exercise caution in engaging in the use of crypto-currencies.”
Financial institutions, particularly commercial banks in Grenada and throughout the ECCU have exercised due care and caution in dealing with crypto-currencies given its anti-money laundering and financing of terrorism (AML/CFT) risks.
“Throughout the Eastern Caribbean Currency Union, there has been advancement in the legislative and regulatory framework and support structures for these asset types.
“We have also seen the provision of regulated alternatives mindful of market needs and global developments, one such example is the Digital cash ‘D-cash’ – the digital version of the EC Dollar supported by the ECCB,” said the GBA, noting that Grenada has enacted the Virtual Asset Business in 2021.
The Virtual Assets Business Act is a regional uniform law that has been enacted in most of the ECCU member countries to date. In Grenada, the enforcing and implementing agency will be the Grenada Authority for the Regulation of Financial Institutions (GARFIN).
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