Crypto Crime Prevention Tips for Investors

As cryptocurrency and crypto trading and investing continue to gain popularity, so do the risks associated with these digital assets. Some of the red flags a crypto investor may experience are the inability to – access their wallet(s), withdraw funds or verify the legitimacy of their account(s). In this blog crypto investors can learn how to protect themselves with these crypto crime prevention tips and they can also discover general tips for crypto legal awareness.

Cryptocurrency and Financial Crime

While cryptocurrency offers innovation and opportunity, its anonymous and decentralised nature can open the door to serious risks once bad actors are involved. Some of these risks are:

  • Fraud
  • Money laundering
  • Financing of illegal activities and (financial) crimes
  • Ponzi and Pyramid Schemes

Ponzi and Pyramid Schemes

While the promise of fast wealth through cryptocurrency may be enticing, all that glitters isn’t digital gold!

Instead some cryptocurrency companies or exchanges may operate as Ponzi, pyramid, or pyramid-type schemes by posing as legitimate platforms while exploiting investors.  However, by virtue of Section 165A of the Trinidad & Tobago Securities Act (as amended), these schemes are prohibited, and it is a criminal offence to establish, operate, advertise, participate in or invite persons to join these schemes.

Lessons for Crypto Investors

Before investing in cryptocurrency, consider the following:

  • Verify the legitimacy of the crypto platform – Check for regulatory approval and compliance.
  • Avoid unrealistic promises – High returns with low risk are often red flags.
  • Understand the law and regulations – Familiarise yourself with the law and regulations that are directly or indirectly related to cryptocurrency.
  • Report suspicious activity – Contact law enforcement and industry regulators.

While these digital assets offer exciting opportunities, they also demand vigilance, caution, due diligence, and legal awareness.

 

If this information resonates with you; or you need legal assistance navigating this area, feel free to reach out at info@tenorequelegalandconsulting.com. You can also explore these resources –Legal & Business Overview of Crypto Assets, “The Unrealised Benefits of the Crypto Sector” by B.Barrow, The Trinidad & Tobago Securities and Exchange Commission and the Financial Intelligence Unit of Trinidad and Tobago for more information.

Crypto Assets – A Legal & Business Overview

In this cryptocurrency legal and business overview, explore the legal recognition and business potential of cryptocurrency, learn how international courts are treating crypto assets and discover the business potential that exists in the crypto sector.

Introduction

According to Aditya Narain & Marina Moretti, “Crypto assets have moved from being niche products in search of a purpose to having   a   more   mainstream   presence   as speculative   investments, hedges   against weak currencies, and potential payments instruments.”

The Courts worldwide have  also been  affirming  that  crypto  assets  can  be recognised as property, subject to claims for crimes or torts and they can be eligible for injunctive relief (as seen in the English case of AA  v  Persons unknown [2020]  4  WLR  35  where it  was  held  that  crypto assets, was a form of property capable of being the subject of an interim proprietary injunction).

In the Hong Kong case of Re: Gatecoin Limited (In Liquidation) [2023]   HKCFI   914, the Honourable Madam Justice Linda Chan included a comprehensive analysis of cryptocurrency, in her judgment, which was informed by the expert work of a Hong Kong blockchain consultancy company.

Cryptocurrency & Blockchain

Cryptocurrency and blockchain technology offer decentralised, secure, and transparent financial transactions. Understanding how these technologies work is the key to comprehending their operations, business potential and the impact they have on digital finance.

What is a Blockchain?

According to Charles Kerrigan, “A blockchain is a piece of software code with particular characteristics.  It is a continuously expanding record of timestamped data (a block of transactions) in which each new record is linked to the respective preceding block by mathematical-cryptographic functions, creating a chain of blocks (hence, blockchain). This linking means that all earlier blocks in the chain are unchangeable. Blockchains are not stored centrally or in the cloud, but decentrally on a network of computers…” (see Charles Kerrigan in Crypto and Digital Assets Law and Regulation (1st edn, Sweet & Maxwell 2024)).

What is Cryptocurrency?

“Cryptocurrency is the financial form of blockchain and a type of virtual currency (or virtual  asset).”

It is a digital asset built on blockchain technology, which records transaction data in a list of records (a block) with a time stamp, and each block is cryptographically linked to the previous one to prevent tampering and permanently stored on the blockchain. Data stored on the blockchain is immutable and it can only be changed when all participants agree. (see Sarra and Gullifer, Crypto-claimants and Bitcoin Bankruptcy Challenges for Recognition and Realisation (2019) 28 IIR 233, 235-236 and UK Jurisdictional Taskforce, Legal Statement on Cryptoassets and Smart Contracts, November 2019).

 The Main Types of Crypto Assets are:

  • Unbacked coins
  • Stablecoins; and
  • Other assets which include utility tokens

“Like the traditional banking sector and traditional assets, the alternative finance sector, including inter alia the crypto assets sector, is subject to bad actors and criminals.” However, “the crypto asset sector risks are no greater than those present within mainstream financial markets, which are managed by law and regulation” (according to the case of Ruscoe and another v Cryptopia Ltd (in liq) [2020] NZHC 728). In addition, the learned Judge in Ruscoe further highlighted that, “cryptocurrencies have also become popular with honest people who use them as a payment and investing method.”

It is therefore unsurprising that the different components of the crypto assets sector represent current or potential business opportunities. These include but are not limited to:

 

If this information resonates with you; or you need legal assistance navigating this area, feel free to contact us at info@tenorequelegalandconsulting.com. You can also explore these additional resources – “The Unrealised Benefits of the Crypto Sector” by B. Barrow, The UWI St. Augustine Law Journal Vol.3, No.1, June 2025, pp.64-70 , the Re: Gatecoin case and the Ruscoe case for further information.

EMI Registration in T&T: Some Key Considerations

Do you have plans to do EMI registration in Trinidad and Tobago? Whether you’re a startup, SME, or established business, understanding the legal and financial landscape is crucial to a smooth registration journey. Discover the key financial requirements, legal entity sizes, and support options for registering as an EMI in Trinidad & Tobago.

Some Core Financial Considerations

In addition to registration fees and operational costs, an entity applying to be an EMI has to give consideration to transactional limits and cater for capital requirements.

This can be especially challenging for micro, small, and medium enterprises (MSMEs), small, and medium enterprises (SMEs) or startups breaking into the fintech space.

Entity Sizes as Defined by Law

The E-Money Issuer (Amendment) Order, 2023 specifies the size categories for EMIs in Trinidad & Tobago:

Enterprise Employees

(including the owner/manager)

 Assets (TTD) Annual Sales (TTD)
Micro 1–5 Up to $250,000 Up to $250,000
Small 6–25 Up to $1.5M Up to $5M
Medium 26–50 Up to $5M Up to $10M
Large 51+

Capital Requirements & Transactional Thresholds

The E-Money Issuer (Amendment) Order 2023 outlines specific financial obligations for the above enterprises as well as for Government Employees. The classification helps to determine the capital requirements and transactional thresholds that these different sizes of EMIs need to meet. The various capital requirements and transactional thresholds are specified in Schedule 2 of the 2023 Order.

For many micro, small or medium enterprises, these costs can be significant and as a consequence, they can be challenging to meet. However, there may be legal workarounds or strategies that can be explored to overcome this challenge.

If this information resonates with you; or you need legal assistance navigating this area, feel free to reach out at info@tenorequelegalandconsulting.com. You can also explore these resources CBTT; Resources for EMIs in Trinidad & Tobago and How to Register an EMI in Trinidad & Tobago for further information.