WILLEMSTAD – Curaçao is at risk of being added to the gray or even black list of the Financial Action Task Force (FATF) unless it swiftly passes the ‘Landsverordening toezicht virtuele activa dienstverleners’ (Law on Supervision of Virtual Assets Service Providers). Such a move could have significant consequences for the island, including restrictions on international payments made with credit cards. 

The Central Bank of Curaçao and Sint Maarten (CBCS) has issued a warning, stressing that adherence to FATF recommendations is essential to avoid financial isolation. 

The new law is designed to ensure that virtual assets, such as cryptocurrencies, can be used safely, with mandatory separation of payment accounts to protect consumers and ensure reliable transactions involving digital currencies. Legal expert René Mazel, who contributed to the legislation, emphasized the importance of regulation to prevent misuse and maintain financial system stability. 

The Curaçao Fintech Association (CFA) supports the law and sees significant opportunities in a digital economy. CFA President Geraume Bor pointed out that a well-regulated crypto ecosystem could attract new businesses, tourists, and digital nomads. As global acceptance of cryptocurrencies continues to grow, Curaçao must adapt to remain economically relevant. 

CFA Secretary Efia Scuotto-Luis added that regulation would not only provide certainty for businesses and citizens but also open doors to banks and insurers. The law could elevate Curaçao to the same level as countries in the EU and the US, positioning the island as a leader in digital innovation within the Caribbean region.