Jamaica Debates Virtual Asset Licensing Framework

Jamaica's House of Representatives has begun debating a bill that would regulate virtual-asset businesses operating in the country. The Virtual Assets Service Providers Act aims to require these firms to obtain licenses and follow financial-crime controls.

The proposed framework would apply to companies that exchange crypto for fiat currency, transfer digital assets between customers' wallets or accounts, or hold digital assets and private keys for customers. To operate in Jamaica, these businesses would need a license from the Financial Services Commission (FSC), regardless of where they are based.

Operating without a license would be considered a criminal offense under the proposal. Licensed providers would have to verify customer identities, monitor transactions, report suspicious transactions, and maintain records. The bill also includes the 'travel rule,' which requires sender and recipient information to accompany digital-asset transfers.