Is crypto legal in Grenada? Rules & regulation (2026)

Legal framework

Virtual Asset Business Act No. 7 of 2021; Virtual Asset Business Regulations 2024 (S.R.O. 9 of 2024); supervised by the Grenada Authority for the Regulation of Financial Institutions (GARFIN)

Status by sub-area

• Stablecoins

  Unclear

  VABA 2021 explicitly excludes digital representations of fiat currency from the virtual asset definition, creating a regulatory gap for fiat-backed stablecoins. No dedicated stablecoin rules covering reserves, redemption rights, or audits have been published. The ECCB's own DCash CBDC is separate government infrastructure, not a stablecoin regulatory model.

  Still pending: No dedicated stablecoin rules for reserves, redemption rights, or audits published

• Exchanges / VASP

  In force

  Crypto exchanges and all other virtual asset service providers must register with GARFIN under VABA 2021 and the Virtual Asset Business Regulations 2024. Requirements include AML/CFT and cybersecurity policies, a risk assessment, fit-and-proper checks on directors, annual audits, and ongoing reporting obligations.

• Token Offerings

  Partial

  VABA 2021 lists participation in or provision of financial services related to a virtual asset issuance or sale as a regulated activity requiring GARFIN registration. However, the Act excludes 'securities,' so security tokens and STOs theoretically fall under Grenada's general securities legislation, which contains no specific token-offering, prospectus, or investor-exemption rules.

  Still pending: General securities legislation lacks specific token-offering, prospectus, exemption rules

• Custody

  In force

  Safekeeping and administration of virtual assets or instruments enabling control over virtual assets is expressly listed as a regulated virtual asset business activity under VABA 2021, requiring GARFIN registration and AML/CFT compliance. No dedicated custody rules on asset segregation, proof-of-reserves, qualified-custodian status, or insurance have been published.

• DeFi

  Unclear

  VABA 2021 and the 2024 implementing regulations are silent on decentralized finance protocols, DAOs, and automated smart-contract platforms. No enforcement actions, guidance, or regulatory consultations addressing DeFi specifically have been identified for Grenada.

  Still pending: VABA 2021 and 2024 regulations silent on DeFi protocols, DAOs, smart-contract platforms

• Tax

  Partial

  Grenada has no capital gains tax, inheritance tax, or wealth tax, meaning gains from crypto disposals are not taxed on a capital-gains basis. The Inland Revenue Division has issued no specific guidance on crypto income, staking rewards, airdrops, or mining; business income from commercial crypto activities may be subject to general income tax at rates of 10–30%.

  Still pending: IRD issued no guidance on crypto income, staking rewards, airdrops, or mining taxation

Key points: crypto & digital assets in Grenada

1. 01Virtual Asset Business Act 2021 in Force

   Act No. 7 of 2021 mandates registration with GARFIN for any person or entity offering or operating virtual asset business in or from Grenada, including offshore entities serving Grenadian clients. Activities covered include exchange, transfer, safekeeping, and participation in issuances of virtual assets.

   garfin.gd nowgrenada.com

2. 02Implementing Regulations Gazetted 2024

   Virtual Asset Business Regulations 2024 (S.R.O. 9 of 2024) were published on the official Grenada laws portal, completing the operative registration framework. GARFIN began accepting applications in August 2023 ahead of formal gazettement. Registration fees are EC$2,500 (application) and EC$10,000 (registration).

   nowgrenada.com laws.gov.gd garfin.gd

3. 03AML/CFT Compliance and Penalties

   Registered VASPs must maintain written AML/CFT policies, data-protection and cybersecurity safeguards, and a business risk assessment; annual audits and ongoing reporting apply. Operating without registration is a criminal offence: fine of EC$10,000 plus up to two years' imprisonment.

   garfin.gd nowgrenada.com

4. 04Securities and Fiat-Digital Currency Exclusions

   VABA 2021 explicitly excludes 'securities' and 'digital representations of fiat currencies' from the definition of virtual assets. Security tokens and fiat-backed stablecoins therefore fall outside GARFIN's VABA remit; no alternative regulatory regime for these instruments has been enacted.

   nowgrenada.com garfin.gd

5. 05ECCB DCash CBDC, Pilot Launched, 2.0 Suspended

   The Eastern Caribbean Central Bank launched its blockchain-based CBDC DCash across participating member states including Grenada in March 2021. The ECCB has since suspended DCash 2.0 development and is pivoting to a regional fast-payment system, leaving the region's public digital-money landscape in transition.

   eccb-centralbank.org eccb-centralbank.org

6. 06No Capital Gains Tax; Crypto Tax Guidance Absent

   Grenada levies no capital gains tax, inheritance tax, or wealth tax, meaning crypto disposals are not taxed as capital gains. The Inland Revenue Division has issued no guidance on staking rewards, airdrops, or mining; income from commercial crypto activities may be subject to general income tax at 10-30%.

   ird.gd finance.gd

Sources

1. 1.garfin.gd/index.php/legislation/virtual-asset-legislation
2. 2.garfin.gd/index.php/regulated-sectors/virtual-asset-service-providers
3. 3.nowgrenada.com/wp-content/uploads/2024/05/Act-No.-7-of-2021-Virtual-Asset-Business-A
4. 4.nowgrenada.com/2024/05/virtual-assets-business-regulation-published-3-years-after-la
5. 5.laws.gov.gd/index.php/s-r-o/1373-2024
6. 6.eccb-centralbank.org/blogs/understanding-cryptocurrency-in-the-eccu
7. 7.ird.gd/
8. 8.finance.gd/index.php/taxes/28-taxes/171-information-for-businesses
9. 9.eccb-centralbank.org/blogs/the-eccb-s-digital-currency-dcash-is-a-critical-step-in-the-bui