The Financial Services Authority (FSA) of Saint Vincent and the Grenadines has immediately suspended the submission of new applications for virtual asset businesses.
The move follows earlier steps by the regulator to tighten oversight of financial businesses. In January 2023, the SVG FSA tightened requirements for companies conducting forex business, requiring them to provide evidence of licences or approvals from the jurisdictions where their activities were conducted.
The measure followed an increase in complaints and fraud allegations involving SVG-registered companies.
New Applications Remain Suspended Until Further Notice
The FSA said the latest suspension will allow it to strengthen its internal capacity as it continues to process and supervise the country’s growing virtual asset sector.
The suspension will remain in place until further notice. The regulator did not provide a specific date for when new applications will reopen. Applications submitted before September 1, 2026, will continue to be processed and are not affected by the suspension.
Suspension Called Precautionary Administrative Measure
The FSA described the move as a precautionary and administrative measure. It did not indicate that the suspension was linked to enforcement action against existing virtual asset businesses.
The authority said it will announce when new applications can resume. Until then, prospective applicants will not be able to submit new virtual asset business applications to the FSA.
Offshore Financial Regulation Faces Wider Scrutiny
The latest move also comes against a wider backdrop of regulatory scrutiny of offshore financial businesses. Finance Magnates has previously reported on questions surrounding financial regulation in the Union of Comoros, where the Banque Centrale des Comores has warned about entities claiming to issue banking and financial licences without legal authority.
The BCC has identified the Mwali International Services Authority and Anjouan Offshore Finance Authority among structures it considers unauthorised. Similar questions over the status of offshore financial registrations have also affected the forex and CFD industry, where some brokers have used such structures as part of their international operations.
This article was written by Tareq Sikder at www.financemagnates.com.
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