Overview: A Landmark Year for Virtual Asset Regulation in the Caribbean

2025 marks a pivotal shift in the Caribbean virtual asset landscape. Two jurisdictions - St. Lucia and St. Vincent and the Grenadines (SVG) - have introduced comprehensive legal frameworks for Virtual Asset Service Providers (VASPs). For the first time, firms engaging in digital asset activities in these countries must now apply for authorization and comply with newly enacted laws.

Whether you're an existing business or planning to launch a new operation, compliance is mandatory this year. Here's what you need to know - and how Zitadelle AG can help you navigate the licensing process smoothly.

Understanding the Regulatory Frameworks

Saint Lucia: A Single Composite License

Saint Lucia’s Composite VASP License offers a broad and flexible regulatory umbrella that consolidates multiple service lines. It is issued by the Financial Services Regulatory Authority (FSRA) and applies to a wide range of activities, including:

• Digital asset exchange operations

• Selling or redeeming digital assets (excluding utility tokens)

• Custodial wallet and asset custody services

• Digital asset derivatives (lending, borrowing, issuing)

• Financial advisory services in virtual assets

This all-in-one structure makes Saint Lucia a favorable jurisdiction for firms seeking regulatory clarity and operational efficiency.

Key Requirements:

• Minimum Capital: USD 500,000

• Application Fee: USD 10,000

• Annual Supervisory Fee: USD 50,000

Core Documentation:

• Certificate of incorporation, M&AA

• Business plan with projections

• Compliance frameworks (AML/CFT, IT security, data protection)

• Audited financials or projections

• KYC documents for directors and UBOs

Estimated Timeline:

• Total time: 4–5 months

• Documentation: 2–4 weeks

• Review and clarifications: 8–12 weeks

• Final approval: 4–6 weeks

St. Vincent and the Grenadines: A Compliance Model

SVG’s approach emphasizes financial integrity, risk management, and regulatory accountability. VASPs must meet stringent operational and governance requirements, with a focus on local presence and compliance.

Key Licensing Features:

• Appointment of an External Auditor (CPA, Chartered Accountant, etc.)

• Fit and Proper Criteria for directors, executives, and key staff

• Statutory Deposit (based on client liabilities or fixed minimum)

• Principal Representative required if operating from abroad

• Mandatory insurance coverage for operational risks

Core Compliance Obligations:

• AML/CFT policies aligned with FATF standards

• Travel Rule implementation

• Quarterly and annual reporting

• Client asset protection (ring-fencing, segregation)

• Cybersecurity and internal controls

SVG mandates a more granular operational presence than Saint Lucia, with detailed local staffing, documentation, and regulatory engagement requirements.

Navigating a new regulatory framework is complex—but you don’t have to do it alone. Zitadelle AG offers end-to-end licensing support in both jurisdictions, helping firms from initial structuring to full operational launch.

Our Services Include:

1. Regulatory Advisory

• Jurisdiction selection and corporate structuring

• Fit and proper assessments

• Tailored compliance frameworks

2. License Application Management

• Preparation and submission of application packages

• Liaison with FSRA (Saint Lucia) and FSA (SVG)

• Ongoing clarifications and document revisions

3. Compliance & Risk Management

• AML/CFT policies

• Cybersecurity and data protection

• Risk mitigation frameworks and training

4. Regulatory Liaison

• Acting as your single point of contact with regulators

• Responding to queries and facilitating approvals

5. Post-Licensing Support

• Reporting and audit guidance

• Compliance program updates

• Internal training and governance advisory

Final Thoughts: Act Now to Ensure Compliance in 2025

The introduction of VASP regulation in Saint Lucia and St. Vincent and the Grenadines represents a new period of accountability for virtual asset service providers. Whether you are already operating or planning to enter these markets, you must act now to stay compliant and avoid penalties.

Contact Zitadelle AG today to schedule a free consultation and begin your application in Saint Lucia or St. Vincent and the Grenadines.

Stay ahead of the curve in 2025—ensure your VASP is fully compliant and operationally resilient with Zitadelle AG.