Overview
Antigua and Barbuda’s Digital Assets Business Act (DAB), together with its supporting Regulations, provides a modern, adaptable, and wide-ranging legal framework for companies involved in blockchain, cryptocurrency, and other digital asset ventures.
The legislation became fully operational in May 2021, immediately drawing attention from both innovative startups and established international groups. Initial approvals for licences are expected to be announced before the year’s end.
Standing out as one of the earliest complete licensing systems in the digital asset sector—regionally within the Caribbean and at the global level—the DAB regime positions Antigua and Barbuda as a strong, competitive base for distributed ledger technology projects and services.
Categories of Digital Asset Business Licences
The Act offers three primary licensing categories, designed to accommodate a broad spectrum of business models while maintaining flexibility and cost-effectiveness.
Category A
Covers:
- Payment Service Providers
- Digital Asset Service Vendors
- Custodial Wallet Providers
- Digital Asset Custody Providers
- Special Purpose Depository Services
This category is intentionally broad, encompassing activities such as:
- Remittance and payment solutions
- Automated Market Makers (AMMs)
- DeFi applications and CeFi–DeFi bridging tools
- Lending and robo-advisory platforms (custodial or non-custodial)
- Token escrow and crypto insurance services
- Crypto debit card programmes
- Tokenisation projects
- Stablecoin custody and deposit-backing solutions
Category B
Covers:
- Digital Asset Exchanges
These may include:
- Centralised exchanges (CEX)
- Permissioned decentralised exchanges (DEX)
- NFT marketplaces and trading platforms (centralised or decentralised)
- Swap platforms offering crypto-crypto, fiat-crypto, or crypto-fiat exchange functions
Category C
Sandbox Licence – A renewable, time-limited licence ideal for experimental or hybrid projects that do not clearly fall within Category A or B. This pathway allows both startups and established companies to trial innovative products or business models in a controlled environment, with renewals every six months.
Key Benefits and Distinctive Features
- Broad coverage – Three categories designed to accommodate almost all current and foreseeable blockchain and crypto business models, including exchanges, DeFi platforms, and NFT ventures.
- Tax advantages – Antigua International Business Companies benefit from full exemption on foreign-sourced income and face only minimal accounting and reporting obligations.
- Open ownership rules – No nationality restrictions for shareholders, directors, or beneficial owners, provided they meet fit-and-proper criteria.
- Balanced compliance – Clear and proportionate KYC/AML requirements, with the ability to onboard clients from most jurisdictions.
- Minimal substance requirements – Modest local office and employment obligations, with low salary tax burdens compared to EU-based options.
- Fast processing – Most applications are processed within two to three months, significantly quicker than in many comparable jurisdictions.
- Client flexibility – No restrictions on whether clients are local or international.
- Low regulatory costs – Application fees from around USD 3,700 to USD 7,400, with statutory deposits scaled by category and turnover (ranging from roughly USD 18,500 to just over USD 110,000 for high-volume exchanges).
- Light reporting obligations – Minimal monthly or annual filings, freeing resources for core business operations.
- No transaction caps – Unlimited transaction volumes for all categories.
- Experienced support – Access to skilled local and international legal advisors at competitive rates.
- Regulatory access – Direct, ongoing engagement with the Financial Services Regulatory Commission (FSRC) and other relevant authorities.
Frequently Asked Questions
Do I need a DAB licence to issue a token?
Generally, no—provided the token does not meet the legal definition of a “security.” This is determined on a case-by-case basis.
What is the usual licensing timeframe?
Typically two to three months, assuming documentation is in order.
Can a licence lapse or be revoked?
Licences must be renewed annually, with fees based on category and turnover. Non-compliance with FSRC directives can lead to suspension or cancellation.
What taxes apply to licensed activities?
Digital asset business activities are generally tax-exempt.
Is there a prospectus requirement?
No prospectus is currently required under the DAB.
How long to set up a local entity?
Usually a matter of days once KYC/AML documents are provided.
How do I confirm if my model fits a licence category?
The categories are intentionally flexible—contact us for a pre-assessment.
Are charities or non-profits exempt?
No, the rules apply equally to all entities, including NPOs.
Are there restrictions on the tokens an exchange can list?
No quantitative caps. Qualitative restrictions may apply to security-type tokens; stablecoins are generally acceptable except those backed by the East Caribbean Dollar.
Must I appoint an independent VFA agent?
No such requirement exists under the DAB.
Can a DAB-licensed company open a bank account?
Yes—options exist both locally and with regional banking partners, and tailored banking introductions are available.
Contact
Our dedicated team of specialists is available to guide you through DAB eligibility assessments, application preparation, and regulatory liaison. Enquiries are typically answered within one to three business days.
