Dominica government approves virtual asset business legislation

Dominica's government defended its choice to approve the Virtual Asset Business legislation, claiming that the rise of virtual assets in the area and globally has sparked a surge in public interest and a variety of legislative solutions.

After passing the legislation, Dominica has joined St Kitts-Nevis and Antigua and Barbuda in passing similar laws in the Organization of Eastern Caribbean (OECS)

"A virtual asset is a digital representation of value that can be traded and transferred through the internet." Dr Vince Henderson, Minister of Planning and Economic Development, informed Parliament on Monday night that virtual assets can be used to make payments or investments.

Discussing virtual assets, Minister Henderson stated that these include cryptocurrencies like bitcoins.

"While the trading or transfer of virtual assets does not yet constitute a major danger to financial stability here in Dominica, our administration has recognised the need to put the required regulatory framework in place."

He claims that by doing so, he will be able to keep a close eye on this new, rapidly evolving, and potentially disruptive financial instrument.

"The idea is to have a harmonised legislation across all member states of the Eastern Caribbean Currency Union (ECCU) since all members operate within a single monetary space," Henderson said, adding that the Virtual Asset Business Bill was drafted with the help of the Eastern Caribbean Central Bank (ECCB).

Clement Marcellin, an opposition legislator who supports the bill, says it provides prospects for Dominica and is in line with the country's push toward a digital economy.

"The potential benefits that can be extracted from the appropriate use of technology makes business cheaper, easier, faster, and overall lowers the direct need for cash, thereby expanding the financial footprint."

According to Marcellin, the value of digital currencies has surged in recent years, which "opens up a niche and initiative for Dominica's young people to benefit tremendously."