Crypto License in Saint Lucia
Today, many countries are welcoming investors who want to set up a cryptocurrency exchange or launch a blockchain-based project in their territory. One of the most attractive legal districts for efficient cryptocurrency exchanges with minimal tax obligations is St. Lucia. Fast Offshore Licenses will answer all questions regarding cryptocurrency exchanges and licenses in St. Lucia.
St. Lucia is not the first country that comes to mind when it comes to crypto business, but it certainly deserves attention. The Caribbean region is a terrific financial oasis, plus it’s affordable. Many industry experts say the Caribbean has great potential to become the next “crypto-valley.” Although the region does not have the technological infrastructure that Switzerland or Estonia have, it does have the financial.
The cryptocurrency business in Saint Lucia has several advantages:
- A favorable regulatory environment. St. Lucia has created a favorable legal and regulatory environment for the cryptocurrency business. The government has demonstrated a proactive approach to the use of blockchain technology and digital currencies, providing clarity and legal certainty for cryptocurrency-related activities.
- Low taxation. St. Lucia offers attractive tax incentives for cryptocurrency businesses. The jurisdiction offers tax exemptions (0% tax) for companies which provide their services outside St Lucia. That helps to boost the profitability of cryptocurrency exchanges and related businesses.
- Privacy. St. Lucia respects privacy, which makes it an attractive jurisdiction for cryptocurrency transactions. It has robust privacy laws and regulations that protect the confidential information of individuals and businesses.
- Access to international markets. The creation of a cryptocurrency exchange in St. Lucia provides access to international markets. The country’s strategic location in the Caribbean region facilitates connections to both North and South American markets, creating opportunities for global expansion.
- Stable political and economic environment. Saint Lucia has a stable political and economic environment that provides a safe and secure base for cryptocurrency business. This stability reduces the risks associated with geopolitical instability and economic fluctuations, increasing investor confidence.
- Favorable business environment. St. Lucia offers a favorable business environment with simplified registration procedures and a responsive government. The country has dedicated institutions and agencies to help entrepreneurs establish and manage their cryptocurrency businesses.
- A growing cryptocurrency community. St. Lucia is witnessing a growing crypto community with a growing interest in digital currencies and blockchain technology. This trend creates opportunities for collaboration, partnerships, and knowledge sharing within the local ecosystem.
Although St. Lucia still does not have specific legislation regulating cryptocurrencies, it has recently taken a proactive approach to this area of legislative regulation, recognizing the potential benefits of blockchain technology and digital currencies.
Key points regarding cryptocurrency regulation in St. Lucia:
Saint Lucia has not yet enacted specific legislation or regulations devoted exclusively to cryptocurrencies. Nevertheless, the government has shown a willingness to use digital assets and blockchain technology, creating a favorable environment for cryptocurrency businesses. Not long ago, the Financial Services Regulatory Authority (FSRA) notified companies that they will publish a set of laws and regulations for issuing crypto licenses in late 2023. Once the law is published, crypto activities will be fully regulated and all companies that want to start a crypto business will need to apply for a license. It will only be possible to start a business when the license is approved.
Digital assets with the characteristics of securities may be subject to St. Lucia’s current securities laws. Therefore, cryptocurrency companies need to comply with the relevant securities provisions if their offerings are considered securities. More information on this can be found on the website of the St. Lucia Attorney General’s Office.
Anti-Money Laundering Act
Cryptocurrency businesses in St. Lucia are subject to the Anti-Money Laundering (AML) Act and the Know Your Customer (KYC) rules spelled out in the Act. Entities involved in cryptocurrency activities must implement robust AML and KYC procedures to prevent illegal activities and ensure compliance with these requirements.
Licensing and registration
Although there are no specific licensing requirements for cryptocurrency businesses in Saint Lucia now, cryptocurrency companies must register with the relevant government authorities, following existing business registration procedures.
Important requirements for opening a cryptocurrency exchange in St. Lucia are:
- at least one shareholder;
- at least one director (the same person can also be a shareholder);
- a clean police report (for Americans – FBI report).
There is no minimum start-up capital required to form a company.
Each shareholder and director requires certain documentation, which must be provided:
- Certified copies of two government-issued identification documents, one of which must be a passport.
- Two letters of recommendation from the bank.
- Original utility bill or business address document issued by the state financial institution.
If properly executed, the company may be registered within 24 hours of receipt of all required documents.
As the cryptocurrency market involves certain risks, cryptocurrency companies need to prioritize security, transparency, and integrity measures to protect the interests of their users and customers.
If you need more information on this subject, please do not hesitate to contact us. We are ready to help you.
Crypto License Registration in Saint Lucia packages
- All services from the Basic package
- Basic accounting services for 1 year
- Annual Returns Filing
- Tax registration
- Submission of Tax returns
- All services from the Essential package
- Assistance with corporate account opening
- Dedicated consultant with the fully provided individual approach
- Full turnkey company formation assistance
- Set of corporate documents
- Standard AML/KYC Policy
- Registration of the company as a Virtual Asset Service Provider
Procedure for obtaining a Cryptocurrency License registration in St Lucia
COLLECTION OF PRELIMINARY DOCUMENTS
- Documents required:
- Preferred company name
- Incorporation form
- Passport copies from all shareholders and directors
- Utility bills from all shareholders and directors
- Brief business activity description
COMPANY and CRYPTO ACTIVITY REGISTRATION
- Submission of notification to the Registry
- Company registration
- Issue of corporate documents
- Registration of company activity as a VASP
CORPORATE ACCOUNT OPENING
- Analysis of the most suitable Banks/EMIs, comparison of the risk appetite of the Bank in relation to the risk appetite of the Client based on previously prepared AML policies
- Collection of necessary documents from the Client side to initiate the process (flow of funds, source of wealth, description of the purpose of opening an account, key partners, company website, utility bill, etc.)
- Guiding the Client’s company through the entire process of opening an account
Crypto Taxation in Saint Lucia
St. Lucia is known for its favorable tax environment, including certain incentives for cryptocurrency businesses. Since the status of cryptocurrency in St. Lucia is currently undefined, no taxes are levied on crypto transactions. However, note some key points regarding taxation in St. Lucia:
St. Lucia levies a corporate tax on business profits. The standard corporate tax rate for companies that provide services in St. Lucia is 30%, but certain tax breaks and exemptions may be available for some businesses, including those in the cryptocurrency industry. For companies that provide services outside of St. Lucia, the tax rate is 0%.
Capital Gains Tax
In St. Lucia, capital gains are generally not taxable. This means that any profits made from the sale of cryptocurrencies cannot be subject to capital gains tax.
Value Added Tax (VAT)
St. Lucia applies the Value Added Tax (VAT) system to the provision of goods and services. The standard VAT rate is 12.5%. However, the specific application of VAT to cryptocurrencies may vary, and it is recommended that professional advice be sought to determine the VAT liability associated with cryptocurrency transactions.
St. Lucia does not levy withholding taxes on outgoing payments such as dividends, interest, or royalties. This is extremely beneficial for cryptocurrency companies, especially those involved in international transactions.
FAQ about Saint Lucia Crypto License
How do I get a crypto currency license in Saint Lucia?
- As of today, there is no special license for cryptocurrency-related activities. However, the financial regulator has already notified companies that at the end of 2023 a law regulating the issuance of crypto licenses will come into force. After the law is published, it will be possible to start a crypto business only after applying for and obtaining a license.
Which crypto exchanges are already operating in Saint Lucia?
- 4 trusted exchanges are operating in Saint Lucia, the most popular of which are Binance and Kraken.
Is cryptocurrency legal in Saint Lucia?
- Although Saint Lucia does not have specific legislation to regulate cryptocurrencies, it has signed up to participate in the ECCB pilot project to test the use of cryptocurrencies alongside the country’s national currency.