Date: 18.09.25
Subject: Proposed Amendments to The Virtual Assets and Virtual Assets Service Providers Bill, 2025 to Foster Responsible Innovation and Consumer Protection
1. Introduction
Sunshine Limited is a Trinidad and Tobago-based Stablecoin Exchange, Remittance Service, and Financial Technology company, founded in 2022 by local entrepreneur Jarryon Paul. Our mission is to provide citizens with safe, compliant, and efficient access to digital assets and modern financial services. We serve approximately 2,000 Trinbagonian customers and have operated from inception with full Know Your Customer (KYC), Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT), and transaction monitoring protocols, mirroring the standards of traditional financial institutions.
We welcome the government’s initiative to regulate the virtual asset industry through the Virtual Assets and Virtual Assets Service Providers Bill, 2025 (VAVASPB). Effective regulation is crucial for consumer protection, market integrity, and national economic growth.
However, in its current form, the Bill does not regulate—it terminates. It will force the immediate shutdown of legitimate, compliant domestic operators, harming consumers and stifling innovation, while doing little to curb the illicit actors it aims to target.
This paper outlines our core concerns and proposes pragmatic amendments to transform the VAVASPB into a world-class regulatory framework that protects citizens while allowing a vital digital industry to thrive in Trinidad and Tobago.
2. Executive Summary of Concerns
The VAVASPB, as drafted, presents a critical threat to the legitimate digital asset industry and financial innovation in Trinidad and Tobago due to one primary provision:
Clause 4(3) & (5): A De Facto Ban: The Bill imposes a moratorium on licensing until the end of 2027 and mandates that all existing operators (Clause 4(5)) must cease all activities within three months of enactment. This is not a regulatory pause but an outright prohibition that will:
Eliminate Consumer Choice: Shut down safe, regulated on-ramps and off-ramps for citizens wishing to utilize digital assets for remittances, savings, or investments.
Cede the Market to Bad Actors: Non-compliant and offshore entities operating without oversight will continue to serve market demand, but now without any local, regulated competition. This pushes activity underground and increases, rather than decreases, consumer risk.
Stifle Economic Growth: It halts investment, eliminates jobs in a nascent tech sector, and contradicts the national vision for innovation exemplified by the establishment of the Ministry of Public Administration and Artificial Intelligence.
Penalize Compliance: Companies like Sunshine, which have proactively implemented robust compliance frameworks, are punished equally alongside the very actors the Bill seeks to control.
3. The Path Forward: Principles for Effective Regulation
We believe Trinidad and Tobago can and must do better. Global precedents from the USA’s GENIUS Act (2025) , EU’s MiCA Regulation (2023), Bermuda’s DABA (2018), and The Bahamas’ DARE Act (2020) demonstrate that a balance between innovation and consumer protection is not only possible but already operational.
A responsible Bill should be built on three core principles:
Immediate Consumer Protection: Regulations must empower the regulator to enforce KYC, AML/CFT, and financial reporting standards immediately.
Inclusion of Existing Operators: Legitimate existing businesses must be brought into a regulated framework, not excluded by a moratorium.
Pro-Growth and Pro-Innovation: Regulation should provide legal certainty to encourage responsible investment and job creation in the digital economy.
4. Recommended Amendments to the VAVASPB
We propose the following specific amendments to align the Bill with these principles and global best practices. These amendments are designed to create a transitional regulatory framework that brings existing operators under the immediate supervision of the TTSEC.
Clause | Current Wording | Proposed Amendment | Rationale |
|---|---|---|---|
4(3) | "the Commission shall not, on or before 31st December, 2027, grant any authorisation..." | Replace with: "The Commission is hereby empowered to establish, within three (3) months of commencement, a transitional framework for the registration and licensing of existing VASPs. This framework must be operational by 31st December 2025." | Removes the crippling moratorium and mandates the TTSEC to create a functional pathway for regulating existing businesses without delay. |
4(5) | Requires existing VASPs to notify the TTSEC and cease all activity within 3 months. | Replace with: Existing VASPs must notify the TTSEC within one month and shall be deemed provisionally registered, permitted to operate conditional on immediate adherence to new Clause 4(5A). | Prevents the shutdown of legitimate businesses and provides immediate oversight through provisional registration. |
New 4(5A) | N/A | Insert new subsection: "Conditions for provisional registration shall include: (a) Abiding by TTSEC-outlined KYC/AML/CFT policies; (b) Maintaining and providing access to complete financial records; (c) Submitting to TTSEC supervision and examination; (d) Complying with all financial reporting and cybersecurity directives." | Empowers the TTSEC to enforce critical consumer protection rules from Day One, creating a regulated environment during the transitional period. |
New 4(5B) | N/A | Insert new subsection: "Provisionally registered VASPs must apply for a full license under the Commission's framework. Provisional status remains until the application is determined." | Ensures the transitional period has a clear endpoint, requiring all operators to formally qualify for a full license. |
5. Conclusion
The goal of the VAVASPB should be to protect Trinbagonians and their financial interests. Forcing compliant companies to close their doors achieves the opposite effect, leaving consumers vulnerable and halting progress.
Our proposed amendments transform the Bill from a blanket prohibition into a sophisticated regulatory tool. They provide the TTSEC with the immediate power to supervise, control, and enforce standards, ensuring that the virtual asset industry in Trinidad and Tobago is built on a foundation of transparency and integrity.
Legitimate existing virtual asset service providers stand ready to collaborate with policymakers to ensure Trinidad and Tobago seizes this opportunity to become a leader in responsible digital asset regulation in the Caribbean.