Antigua and Barbuda Combines Cannabis Policy with Digital Asset Framework

Antigua and Barbuda has created a unique regulatory environment by combining its cannabis policy with digital asset framework. The Digital Assets Business Act (DABA) requires licensing for virtual asset service providers (VASPs), while the Cannabis Act regulates medicinal cannabis.

Cannabis-related businesses can leverage DABA's licensing regime to accept or transact in digital assets, adhering to AML/CFT obligations and standard income tax on corporate profits. The Financial Services Regulatory Commission (FSRC) issues licenses, ensuring a predictable tax environment for businesses.

The Yida Special Economic Zone, if confirmed, could serve as a hub for cannabis-related enterprises, offering reduced corporate tax rates, fast-track licensing for VASPs, and specialized infrastructure for secure crypto custody. Investors must conduct due diligence before engaging with the SEZ.

Integrating crypto payments into cannabis commerce involves navigating both DABA and the Cannabis Act. A compliance roadmap includes forming a corporate entity in Antigua, applying for a VASP license, collaborating with the MCA, deploying secure wallet infrastructure, maintaining records, and reporting suspicious activity.