T&T Prepares to Move Crypto Sector Beyond Regulatory Sandbox

Trinidad and Tobago is preparing to transition its cryptocurrency sector from a controlled sandbox environment to a permanent regulatory framework. The move aims to tap into the potential of virtual assets to address long-standing challenges in cross-border payments, remittances, and capital-market liquidity.

Alexander Gafoor, president of the Fintech Association of Trinidad and Tobago, highlighted that the opportunity extends beyond cryptocurrency trading to remittances, cross-border payments, stablecoins, and the tokenisation of real-world assets. He stressed that the sector has significant potential in the Caribbean, particularly due to foreign exchange constraints and the erosion of correspondent banking relationships.

According to Gafoor, digital assets could provide an alternative means of moving money across borders as traditional banking channels become more difficult and expensive. He pointed out that virtual-asset payment platforms are a practical alternative to traditional banking rails.

The eventual framework will need to recognize that not all Virtual Asset Service Providers (VASPs) perform the same functions, said Kester Guy, chief executive officer of the Trinidad and Tobago Securities and Exchange Commission (TTSEC). He emphasized that regulators must look beyond the nomenclature and focus on the activities actually performed by these entities.

The TTSEC is working on a coordinated approach involving key agencies and the private sector to develop a robust regulatory framework. The framework will also need to demonstrate effective implementation, as weaknesses in crypto regulation could have implications beyond VASPs and spill over into the wider financial system.