Re-thinking the T&T Virtual Assets Bill, 2025

Trinidad & Tobago’s Virtual Assets Bill, 2025 proposes a virtual assets moratorium until 2027. Explore its legal, economic and innovation impacts and calls for smarter regulation.

The Bill

On September 12th, 2025, the Government of Trinidad & Tobago introduced the Virtual Assets and Virtual Asset Service Providers Bill, 2025 in the T&T Parliament. This Bill aims to bring the country in line with Financial Action Task Force (FATF) Recommendations 15 and 16, which target anti-money laundering and counter-terrorism financing in the virtual assets space.

But the major catch is that the proposed legislation inter alia includes a moratorium on virtual assets activity until December 31, 2027, with penalties of up to TT$5 million for unauthorised operations.

Legal Recognition of Crypto Assets

Crypto assets are no longer fringe instruments. As noted by Aditya Narain and Marina Moretti, they have evolved into mainstream tools for investment, payments, weak currency hedging and payment instruments.

Additionally, Courts across the Commonwealth including The British Virgin Islands, Singapore, Hong Kong, Canada, Australia and New Zealand and the United Kingdom have recognised crypto as property. In AA v Persons unknown [2020] 4 WLR 35, Bitcoin was deemed a form of property capable of being the subject of an interim proprietary injunction.

And Section 4(a) of the Constitution of Trinidad & Tobago, guarantees the right to enjoyment of property and protection of the law. This therefore raises questions about the Bill’s impact on current owners of virtual assets, including cryptocurrency, “in or from within Trinidad & Tobago”.

T&T Crypto Activity is not just speculation

According to Chainalysis’ 2024 Geography of Crypto Report, Trinidad & Tobago had an overall rank of #137 in the Global Crypto Adoption Index which is proof that cryptocurrency is alive and well in T&T.

And this crypto activity isn’t just scams and speculation as it includes:

  • Micro, small, and medium enterprises (MSMEs)
  • Unbanked and underbanked individuals
  • Forex-starved businesses and individuals
  • Tech innovators and digital entrepreneurs

What this Bill Signals to Good Actors

If passed as-is, the Bill could force legitimate crypto businesses to pause operations until 2027, disrupting:

  • Customer services
  • Employee livelihoods
  • Contractor relationships
  • Financial inclusion efforts
  • Innovation and entrepreneurship

This raises a critical question – Is this proposed legislation aligned with T&T’s goals for digital transformation, economic diversification, foreign direct investment and forex generation?

A Call for Smarter Regulation

Rather than a blanket freeze, T&T needs a data-driven, inclusive approach to crypto regulation. That means:

  • Consulting and collaborating with industry stakeholders
  • Studying more regional and international comparators
  • Balancing compliance with innovation
  • Protecting consumers without stifling growth

Hope for the Future

To shape a future where compliance, creativity and innovation go hand in hand, lawmakers can go back to the drawing board and amend the Bill so that it:

  • Encourages ethical crypto innovation
  • Supports MSMEs
  • Aligns with global standards; and
  • Positions T&T as a regional leader in alternative finance.

For more commentary on this Bill stay tuned to this blog and also follow our Principal Attorney on LinkedIn or Substack.

And 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 – About the 2025 Virtual Assets Bill, Track The Bill’s Progress in The Parliament Here, Follow via Livestream of the Parliament’s YouTube Channel, The Bill Essentials, Compliance or Collapse for our Crypto Future, “De-risking, Re-risking & Financial Crime in this era of alternative finance” by Bellina Barrow, “The Unrealised Benefits of the Crypto” Sector by Bellina Barrow, The Commonwealth Fintech Toolkit, The Central Bank of Trinidad & Tobago and the Financial Intelligence Unit of Trinidad and Tobago for more information.

T&T VIRTUAL ASSETS BILL 2025

Explore the Trinidad and Tobago Virtual Assets Bill 2025 – penalties, compliance and what businesses need to know.

 

Trinidad & Tobago is now signalling a future with explicit, specialised legislation for virtual assets activities, under the watchful, primary eyes of the Trinidad & Tobago Securities & Exchange Commission (TTSEC).  However, authorisation for wallet service provider and virtual asset activity will not be granted before 31st December 2027.

On 12th September 2025, there was the First Reading of The Virtual Assets and Virtual Assets Service Providers Bill, 2025 in the Trinidad & Tobago Parliament by The Honourable Davendranath Tancoo, Minister of Finance and Minister in the Ministry of Planning, Economic Affairs and Development. According to The Bill Essentials, this Bill seeks to reflect the framework set out by the Financial Action Task Force (FATF) Recommendations 15 and 16 particularly in relation to combatting money laundering, terrorist financing and proliferation.

FATF Recommendation 15 relates to “New Technologies” and Recommendation 16 relates to the “Travel Rule”. Taking this long overdue step towards international financial compliance was critical because as far back as 2019, FATF extended its anti-money AML/CFT measures to virtual assets (VA) and virtual asset service providers (VASPs) to prevent criminal and terrorist misuse of this sector.

 Lawmaking in a nutshell

A proposal for a new law can be initiated in either House – the House of Representatives or the Senate. However, a Bill must be passed by both Houses. All “money” Bills must originate in the House of Representatives and be sponsored by the Cabinet.

A Bill goes through various stages including being passed by the House of Representatives, the Senate and the President. The President must assent to all Bills passed by both Houses of Parliament before they can become law, and when a Bill is assented to, it becomes an Act of Parliament (law).

Once this Virtual Assets and Virtual Assets Service Providers Bill, 2025 is passed it will come into effect on a date fixed by the President for Proclamation.

About The Virtual Assets and Virtual Assets Service Providers Bill, 2025

This Bill is proposing to regulate virtual assets and virtual assets service providers via a very concise Bill of only ten (10) clauses, and the comparative legislation that was used to draft this Bill is the Bahamas Digital Assets and Registered Exchanges Act, 2024 (DARE 2024).

The Bill includes a very limited list of definitions. Of note are the definitions for distributed ledger technology, virtual assets, virtual asset activities, Virtual Asset Service Provider/VASP and Wallet Service Provider.

Some Prohibitions and Penalties in The Bill

The Bill says very little of what can be done but moreso emphasises what cannot be done and imposes some stiff penalties.

Among other provisions, the Bill proposes to:

  • Restrict engaging in virtual asset activities, in or from within T&T, without authorisation from the TTSEC.
  • Prohibit unauthorised exchange, transfer, safekeeping or administration of virtual assets, and participating in and provision of financial services related to virtual assets
  • Prohibit advertising virtual asset services except it is a person authorised by TTSEC.
  • Impose penalties including but not limited to:
  • A fine of TT$5 million and imprisonment up to 5 years for individuals, officers and directors of companies, officers or members of unincorporated bodies if liable on summary conviction for operating before the commencement of the Act and failing to write and notify the TTSEC of their operation within three (3) months of the commencement of the Act.
  • Additional daily fines for continuing offences.
  • A fine of TT$125,000 and 1-year imprisonment for virtual assets activity advertising etc.

For enterprising, innovative, law-abiding actors in the virtual assets ecosystem, especially micro, small and medium-sized enterprises, the Bill doesn’t appear to foreshadow a fostering of fertile ground for the growth of the industry. It fails to explore and unearth the untapped opportunity for driving innovation, revenue generation, foreign direct investment, earning much needed foreign exchange, the possibility for establishing virtual assets zones (as was proposed in Pakistan) etc. (all of which the sector can facilitate and foster once it is comprehensively studied, understood and all relevant stakeholders engaged). 

 What’s next?

Stakeholders in the local virtual assets sector should feel free to express their views, on this Bill, as they see fit. They also need to stay vigilant, take heed and be proactive about getting and remaining compliant, in the event this Bill becomes law, since it contains transitional provisions that existing operators need to take heed of and abide by within the stipulated time periods.

For more commentary on this Bill stay tuned to this blog and also follow our Principal Attorney on Substack.

And 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 – Track The Bill’s Progress in The Parliament Here, Follow via Livestream of the Parliament’s YouTube Channel, The Bill Essentials, Crypto Scams, Crimes & The Courts, “De-risking, Re-risking & Financial Crime in this era of alternative finance” by Bellina Barrow, “The Unrealised Benefits of the Crypto” Sector by Bellina Barrow, The Commonwealth Fintech Toolkit, The Central Bank of Trinidad & Tobago and the Financial Intelligence Unit of Trinidad and Tobago for more information.

Crypto’s Hidden Risk Layer

In our previous blog, we examined the darker side of the crypto industry by highlighting scams, frauds, and court cases that underscore the legal risks in this sector. In this follow-up, we focus on the tools and protocols that bad actors may actively exploit to move, conceal, and cash out illicit funds as we explore how the misuse of mixers, privacy wallets, cross-chain bridges, fiat off-ramping platforms, among other services, can pose serious risks for persons operating in the digital assets sector.

In the crypto ecosystem, different services (or protocols) can be used, at any point in time, by bad actors and these are very dynamic and highly adaptable (according to Chainalysis’ 2024 Crypto Crime Report, Feb. 2024). Some of the crypto services (or protocols) used by bad actors, separately or combined, to move, hide and cash out illicit finance include, but are not limited to:

  • Mixers/Tumblers – These are tools, which are also known as blenders, which enhance user privacy and make transactions more anonymous (Perper, 2023). Mixing services, also known as tumblers, allow users to co-mingle their crypto assets with the aim of obscuring the original ownership and breaking the link between sent and received funds. For example, Tornado Cash, a US-sanctioned virtual currency mixer, was the source of $137.6 million of crypto assets processed by Non-Fungible Token (NFT) marketplaces and the laundering tool of choice for 52% of NFT scam proceeds before being sanctioned by the Office of Foreign Assets Control (OFAC) in August 2022.
  • Privacy wallets – These are non-custodial wallets which utilise wallet software that provides privacy-enhancing functionality.
  • Unregistered or unregulated crypto exchanges.
  • Cross-chain bridges – These allow users to move funds from one blockchain to another. All of this activity happens on-chain and no centralised entity ever takes custody of the funds. Use of bridge protocols for money laundering purposes grew substantially in 2023 based on Chainalysis’ 2024 Crypto Crime Report, Feb. 2024.
  • Fiat off-ramping services – These convert cryptocurrency into fiat currency e.g. gambling services, crypto ATMs etc. (see Chainalysis’ 2024 Crypto Crime Report, Feb. 2024).
  • “Trade-based money laundering” (TBML) – This is a well-known method of transferring illicit funds between accomplices while disguising them as proceeds of trade. “In a typical TBML scheme, two illicitly established companies initiate a fraudulent trade deal, massively over- or under-stating the price, quantity or quality of the assets being traded. A fraudulent invoice is issued, allowing the recipient of the goods to either overpay or underpay depending on which way the funds are flowing. The result is that illicit funds are transferred and invoiced under the guise of a trade deal.” (see Elliptic’s 2022 Report on NFTs and Financial Crime).

The reality is clear that illicit finance is not confined to crypto as it exists across both centralised and decentralised financial systems. However, the speed, anonymity, and borderless nature of blockchain technology make certain crypto services particularly attractive to bad actors. As the crypto landscape becomes more complex and adaptive, vigilance, due diligence, and legal awareness remain paramount and ignoring the above risks can lead to costly consequences, both legally and financially. For investors, founders and professionals in the digital assets space, the path forward requires more than just innovation, it demands informed decision-making and investing. By staying vigilant, practicing rigorous due diligence, and acquiring and maintaining a strong grasp of the legal and regulatory landscape, you can seize opportunities with confidence and better safeguard your investments and ventures against these threats.

 

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 – Crypto Crime Prevention Tips for Investors, Crypto Scams, Crimes & The Courts, 2025 Cryptocurrency Investigation in T&T, “De-risking, Re-risking & Financial Crime in this era of alternative finance” by Bellina Barrow, USA & Canada Join Forces to Combat Crypto Scams, The Trinidad & Tobago Securities and Exchange Commission and the Financial Intelligence Unit of Trinidad and Tobago for more information.

Crypto Scams, Crimes & The Courts

In our previous blog it was highlighted that while digital assets offer exciting opportunities, they also demand vigilance, caution, due diligence, and legal awareness. This is due to the risks of cryptocurrency being used by bad actors to commit financial and other crimes. In this blog we will explore the darker side of cryptocurrency through high-profile crypto scams and court cases for you to appreciate why vigilance, due diligence and legal awareness are non-negotiables in the digital assets space.

Crypto companies, exchanges and their founders have been in the global news, and in courts worldwide, for crimes, financial crimes, poor governance, corporate shortcomings and many other reasons.

Notable scams or collapses involving crypto

Here are some notable scams or collapses involving crypto:

  • Terraform: Terraform Labs PTE, Ltd. and Do Kwon were held liable for orchestrating fraud involving crypto asset securities which led to massive investor losses when the scheme unraveled.
  • Thodex: This was Turkey’s first major crypto exchange. In 2021, they suddenly halted trading, preventing users from withdrawing their funds. The CEO disappeared and fled Turkey for Albania. Users were locked out of their accounts and feared that their money was gone. His disappearance triggered a criminal investigation and an international manhunt.
  • FTX – This US/Bahamas, crypto exchange collapsed around 2022 on account of misuse of customer funds, accounting fraud among other charges and claims. As a result, there has been a range of court cases involving the founder, Sam Bankman-Fried and the exchange, even up to present day.
  • Three Arrows Capital (3AC): The founder of 3AC, Su Zhu was arrested in 2023 for failing to co-operate with the liquidators of his collapsed crypto hedge fund. He was imprisoned for 3 months and was released. Three Arrows Capital Ltd is in liquidation and there has been a slew of cases flowing from this collapse including in the British Virgin Islands. These cases continue into 2025 and some of them involve the collapsed FTX crypto exchange.
  • Pig Butchering Scam: A global scam that tricked hundreds of victims worldwide resulted in a $225 million seizure of cryptocurrency by the US Secret Service.

A few Court cases involving crypto

Additionally, here are a few court cases involving crypto:

Given these circumstances, it must be reiterated that while there may be the enticing promise of fast wealth through digital currency, there is a dark side to this space. Bad actors operate in the crypto sector (as well as in the traditional finance sector) and vigilance, due diligence and legal awareness must be exercised when operating in both sectors.

 

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 – Crypto Crime Prevention Tips for Investors, 2025 Cryptocurrency Investigation in T&T, Top 10 Biggest Crypto Frauds, 3AC Case Update, Latest on the Thodex case, The Trinidad & Tobago Securities and Exchange Commission and the Financial Intelligence Unit of Trinidad and Tobago for more information.

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.

Guide to Becoming an E-Money Issuer (EMI) in Trinidad & Tobago

Thinking of becoming an EMI in Trinidad & Tobago? Consider this guide to becoming an E-Money Issuer (EMI) in Trinidad & Tobago covering Companies Registry registration, CBTT and FIUTT applications and other fintech compliance steps.

Who Regulates EMIs in Trinidad & Tobago?

The Central Bank of Trinidad & Tobago (CBTT) is one of the three main fintech regulators in Trinidad & Tobago, and it is responsible for granting provisional or full EMI licenses.

Overview of Key Steps to EMI Registration

To register as an EMI, entities should consider the following:

  1. Register with the Companies Registry
  • Completion of registration on the Companies Registry Online System (“CROS”) for the entity and all of its officials.
  1. Apply to the relevant Fintech Regulator
  • For example if your entity is an EMI that will be engaged in Payment Service Provider (“PSP”) services:

– Complete the EMI and PSP application process

– Provide proof of the applicable legally required capital requirements, and

  • Pay the respective registration fees at the time of registration.

(Note: PSP registration currently has no fee).

  1. Register with the Financial Intelligence Unit (FIUTT)
  • Submit the required FIUTT forms and documentation after receiving provisional EMI registration from the CBTT.

(Note: FIUTT registration currently has no fee).

  1. Engage with other specialised regulators as applicable
  • Depending on your business model, you may need to register with additional regulators and pay their respective fees.

If this information resonates with you; or you need legal assistance navigating EMI registration, feel free to reach out at info@tenorequelegalandconsulting.com. You can also explore these resources Joint Regulatory Hub; About EMIs; Legal Corner Podcast on EMI Licensing for further information.

MORE ON E-MONEY ISSUERS / EMIs

Technology Service Providers (TSPs) are one type of entity permitted to apply to the Central Bank of Trinidad & Tobago (CBTT) (Homepage | Central Bank of Trinidad and Tobago (central-bank.org.tt) to be registered as an e-money issuer (EMI) in Trinidad & Tobago under the E-Money Issuer Order, 2020 & the E-Money Issuer (Amendment) Order, 2023 (see E-MONEY ISSUERS or EMIs – Tenoreque Legal (tenorequelegalandconsulting.com) for the definition of an EMI).

A TSP is defined as “an entity or a person who provides hardware or software that allows a Payment Service Provider to provide payment services or instruments as well as the clearing and settlement of instruments.” (Section 2 of the E-Money Issuer Order, 2020). To be registered as a TSP the entity has to satisfy the requirements of the E-Money Issuer Order, 2020 & the E-Money Issuer (Amendment) Order, 2023 and to be able to conduct payment service activities, it has to also be registered as a Payment Service Provider (PSP). Both of these registrations can be done simultaneously. PSP registration is made according to the Central Bank Act and is conducted under the CBTT’s Payment Systems Guideline No. 3. At the time of writing this blog, no application fee is required for PSP registration however registration and other fees are associated with EMI registration (which will be discussed in a subsequent blog).

PSPs are entities that provide “services that are necessary to support the issuance of payment instruments as well as the acceptance, clearance and settlement of claims generated from the use of these payment instruments.” (Clause 2, Payment Systems Guideline No. 3). PSPs include institutions licensed under the Financial Institutions Act, 2002 to do “banking business” or “business of a financial nature”. “Banking business” and “business of banking” includes payment card business and business of commercial banking and “business of a financial nature” includes the issuance of e-money (see Clause 3, Payment Systems Guideline No. 3). (For a definition of e-money see E-MONEY ISSUERS or EMIs – Tenoreque Legal (tenorequelegalandconsulting.com)).

In addition to TSPs, the other categories of persons, other than licensees, that may apply to the CBTT to be an EMI are  (i) entities registered with the Central Bank as a Payment Service Provider (PSP) or Payment System Operator (PSO) (ii) Money Remitters registered with the Financial Intelligence Unit – Trinidad and Tobago (fiu.gov.tt) (iii) Mobile Network Operators authorised by the Telecommunications Authority of Trinidad and Tobago (Home – TATT); and (iv) other financial institutions, such as credit unions, insurance companies and the Trinidad and Tobago Unit Trust Corporation (Homepage – Unit Trust Corporation (ttutc.com)) (see Section 3 (1)  of the E-Money Issuer Order, 2020).

The three main regulators for EMIs in Trinidad & Tobago are the – CBTT, Trinidad & Tobago Securities & Exchange Commission (TTSEC | You Invest. We protect. Everyone Benefits!) and the FIUTT.  Depending on an EMI’s business model, products or services, other regulators may govern the entity’s operations.

 

An EMI Application should be considered and completed by entities that want to be an EMI, have a finished e-money product or service and have submitted all required documentation in anticipation of moving to the next step of the Trinidad & Tobago regulatory process.

Under the E-Money Issuer Order, 2020, EMIs are only permitted to conduct EMI activities in our local currency – Trinidad & Tobago Dollars, and the activities that EMIs can engage in are (a) issuance of e-money accounts (b) cash-in (c) cash-out (d) provision of payment services; and (e) money transfers or remittances.

 

EMIs are prohibited from (a) co-mingling e-money account holder’s funds with the EMI or any other entity or person (ii) buying, selling or dealing in foreign currency (iii) granting credit; and (iv) issuing or permitting joint accounts.

 

See FINTECH | Central Bank of Trinidad and Tobago (central-bank.org.tt) , Fintech in Trinidad & Tobago #law #shorts #youtube #youtubeshorts #fintechtt and https://thelegalcornerpodcast.buzzsprout.com/1876478/13359516  for more information and stay tuned for further fintech blogs

E-MONEY ISSUERS or EMIs

The Central Bank of Trinidad & Tobago (CBTT) (Homepage | Central Bank of Trinidad and Tobago (central-bank.org.tt)) has overarching responsibility for payment systems in Trinidad and Tobago (T&T) including but not limited to, the authority to make regulations for the issuance of electronic money (e-money), the transfer of funds by electronic means and the oversight of payment systems.

Via Legal Notice 284, the E-Money Issuer Order, 2020 came into effect, in Trinidad & Tobago, to allow other categories of persons, other than licensed financial institutions, to be eligible to issue e-money. These persons are referred to as e-money issuers and they are allowed to issue e-money. At the time of writing this blog, the E-Money Issuer Order was amended by Legal Notice 391 of 2023 – Legal Notice: THE E-MONEY ISSUER (AMENDMENT) ORDER, 2023 – Ministry of Finance. These amendments relate to the transactional limits and capital requirements of EMIs.

According to Section 2 of the  Trinidad & Tobago, E-Money Issuer Order, 2020,  an “e-money issuer” means a person under clause 3 of the E-Money Issuer Order, 2020 who is registered or who has applied to be registered to issue e-money under this Order and has been granted a provisional registration under clause 6.

A general definition of e-money (or electronic money) is that it is as monetary value represented by a claim on the issuer which is stored on an electronic device, issued on receipt of funds of an amount equal to the monetary value issued and accepted as a means of payment by a person other than the issuer (see Section 2(1) of The Financial Institutions Act, 2008 (central-bank.org.tt) of Trinidad & Tobago for a more detailed definition of electronic money). Some examples of e-money are e-wallets (digital wallets, mobile wallets), pre-paid cards etc.

See https://www.youtube.com/shorts/UjdDPfXbQEA,  https://thelegalcornerpodcast.buzzsprout.com/1876478/13359516 ,  https://tenorequelegalandconsulting.com/what-is-fintech/ and  https://tenorequelegalandconsulting.com/fintech-at-work/ for more information and stay tuned for further fintech blogs.