St. Vincent and the Grenadines VASP Regulation: Full Licensing Guide (Effective 31 May 2025)

Updated Compliance Framework & Key Takeaways

The Financial Services Authority (FSA) of St. Vincent and the Grenadines has formally implemented a regulatory framework for Virtual Asset Service Providers (VASPs). This new framework came into effect on 31 May 2025, requiring all businesses involved in virtual asset activities to register and obtain authorization from the FSA.

Entities required to register include those offering:

• Fiat-to-crypto or crypto-to-crypto exchange services

• Transfers of virtual assets

• Custody or administration of virtual assets

• Participation in and provision of financial services related to token issuance

Licensing Eligibility & Application Timeline

• Registration deadline: VASPs operating prior to the law’s implementation must submit their applications within the prescribed timeframe to avoid being struck from the register.

• Processing time: Once the application is deemed complete, the FSA aims to process it within approximately 90 days.

Financial & Capital Requirements

To qualify for licensing, applicants must meet the following financial obligations:

• Statutory Deposit: A minimum deposit of XCD 100,000 or 25% of the VASP’s financial obligations to clients, whichever is greater.

• Professional Indemnity Insurance: VASPs must secure insurance coverage of at least USD 1 million.

• Capital Adequacy: The applicant must demonstrate adequate liquidity and capital to support its operations in accordance with the regulations.

Fit-and-Proper & Staffing Obligations

All key individuals must pass a fit-and-proper assessment, including:

• Ultimate Beneficial Owners (UBOs)

• Significant shareholders

• Directors

• Principal Representative (mandatory for foreign companies)

• Senior officers, including AML/CFT Compliance Officers

These individuals must provide:

• Certified identification documents

• Curriculum vitae and educational certificates

• Police clearance (issued within the last 6 months)

• Bank and professional references

The Principal Representative must reside in St. Vincent and the Grenadines.

Audit, Reporting & AML/CFT Compliance

• External Auditor: Applicants must appoint a qualified external auditor, such as a CPA or Chartered Accountant.

• Financial Statements:

  • Existing companies: 3 years of audited financials

  • Group structures: 2 years of consolidated statements

• Reporting Requirements:

  • Quarterly and annual reports detailing AML/CFT compliance

  • Risk management procedures

  • Details of cybersecurity infrastructure and client asset protections

• Travel Rule Compliance: VASPs must collect and monitor sender/receiver information for transactions.

Client Protections & Risk Management

The framework emphasizes investor protection through:

• Client asset segregation

• Robust internal controls

• Cybersecurity and data protection safeguards

• Transparent complaint and dispute resolution mechanisms

Transition Measures for Existing Providers

• Pre-existing VASPs are permitted to continue operations temporarily while their applications are under review.

• Failure to register or a rejected application may result in compulsory suspension of operations by the FSA.

Application Checklist Summary

Applicants must submit the following:

• Completed application form

• Company registration proof

• Auditor's letter of consent

• Due diligence documents and references

• Director acceptance letters

• Business plan with:

  • Product/service description

  • Target market and feasibility study

  • Management and AML structure

  • Risk management framework

  • Ownership chart and financial projections

• Evidence of statutory deposit and funding sources

• List of subsidiaries (if applicable)

Post-registration obligations (within 6 weeks):

• Proof of insurance

• Prospectus and service contracts

• Licenses from other jurisdictions where applicable

Frequently Asked Questions

When did the SVG VASP law take effect?
The new regulatory framework became effective on 31 May 2025.

How much capital is required?
Applicants must maintain a statutory deposit of XCD 100,000 or 25% of client financial obligations, whichever is greater, plus USD 1 million in professional indemnity insurance.

Is a local representative required?
Yes. Foreign-based entities must appoint a Principal Representative residing in St. Vincent and the Grenadines.

How long does the licensing process take?
Provided all documentation is submitted, the application is processed within approximately 90 days.

Final Thoughts

With the regulatory framework for VASPs now in full effect in St. Vincent and the Grenadines, virtual asset businesses must act quickly to ensure compliance. Zitadelle Advisory Group provides end-to-end support to help your firm navigate the registration process smoothly and efficiently.

Contact our advisory team today to begin your SVG VASP licensing journey.