The Caribbean nation of Barbados releases new regulations for virtual asset supervision, marking a major overhaul of the financial framework.

The Caribbean island nation of Trinidad and Tobago is strengthening its policy regulation in the digital asset sector. The “Virtual Assets and Virtual Asset Service Providers Act 2025,” led by Finance Minister Davendranath Tancoo, has officially been approved by Parliament, marking a significant step forward in the country’s cryptocurrency regulation journey.

Core Content of the Regulatory Framework

The new legislation establishes a comprehensive licensing system for virtual asset service providers. According to the regulations, key entities such as trading platforms, fund transfer services, and digital asset custodians are all brought under regulatory oversight. Before issuing operational licenses, relevant institutions must undergo a transitional compliance period to ensure their business operations meet financial security standards.

This move reflects the cautious attitude of the Tobago government towards the virtual asset market, aiming to protect investors’ interests while establishing an orderly market environment.

Industry Response and Controversies

Although the regulatory framework has received official approval, not all voices are supportive. Opponents worry that overly strict licensing conditions and restrictions could negatively impact blockchain innovation, especially among startups and small service providers, potentially limiting industry vitality.

This debate over balancing “regulation” and “innovation” also mirrors the common challenges faced by global cryptocurrency policy development. Trinidad and Tobago’s exploration provides a reference case for other developing economies.