WILLEMSTAD - The Central Bank of Curaçao and Sint Maarten (CBCS) has announced that all companies involved in virtual assets, payment services, and electronic money must register by July 9. This requirement applies to companies operating from Curaçao and Sint Maarten. The legislation has been revised to meet international standards against money laundering and terrorism financing.
Virtual assets are digital representations of value that can be traded or transferred and can be used for payments or investments. Examples include cryptocurrencies like Bitcoin and Ethereum. Unlike traditional money, virtual assets are typically decentralized and operate through a technology called blockchain, which records and verifies transactions without the need for a central authority.
Payment institutions are companies that process payments, such as online payment services. Electronic money institutions issue electronic versions of cash, like digital wallets.
Security Measures
Since May 16, rules in Curaçao have been tightened to combat money laundering and terrorism financing. The changes in legislation, known as the National Ordinance on Identification in Service Provision (LID) and the National Ordinance on Reporting Unusual Transactions (MOT), ensure that providers of virtual assets, payment institutions, and electronic money institutions must now comply with strict regulations.
"These changes allow us to guarantee a safer and more reliable financial system," said a CBCS spokesperson. "It is essential that these companies register to avoid becoming unintentionally involved in criminal activities."
Non-compliance
The Central Bank emphasizes the importance of adhering to the new rules. Companies that do not register or follow the regulations risk legal action and sanctions.
For Sint Maarten, similar legislative changes are still in progress, but companies there will also need to register soon.