The Digital Assets Business Bill 2020 of Antigua and Barbuda

The Digital Assets Business Bill 2020 of Antigua and Barbuda is a legislative act designed to regulate entities involved in digital asset-related activities, protect clients’ interests, and establish a legal framework for digital asset businesses operating within the country.

Overview of Main Sections and Key Articles

Part I: Preliminary

• Interpretation: Defines terms critical to the act, such as ‘digital asset,’ ‘wallet,’ ‘exchange,’ and ‘cybersecurity event.’
• Definition of roles: Clarifies roles like ‘director,’ ‘controller,’ and ‘senior executive’ and delineates their responsibilities and limitations.

Part II: Licensing

• Licensing requirement: Prohibits unlicensed digital asset business activities and requires entities to obtain specific licenses.
• Application process: Outlines procedures for applying for a digital asset business license, required documentation, and fees.
• License classes: Describes different license types (Class A and B), their duration, and eligibility criteria.
• Revocation and restrictions: Provides grounds for revoking or restricting licenses if there are compliance or regulatory issues.

Part III: Administrative matters

• Principal office: All licensed entities are required to maintain a principal office and a senior representative in Antigua and Barbuda.
• Notification requirements: Obligates entities to report significant changes, such as change in officers, controller, or material business adjustments.

Part IV: Investigations

• Commission’s investigative powers: Grants the Financial Services Regulatory Commission (FSRC) authority to conduct investigations, access documents, and demand cooperation.
• Right of entry: Authorises FSRC to enter premises for investigation and to ensure compliance with the act.

Part V: Disciplinary measures

• Warning and decision notices: Details procedures for issuing warnings and formal decisions on non-compliance, with rights to appeal.
• License surrender: Allows voluntary license surrender upon the Commission’s approval.

Part VI: Audited accounts

• Annual financial statements: Mandates annual audited financial statements for all licensed digital asset businesses.
• Auditor’s communication: Auditors are obliged to notify the Commission about certain material issues.

Part VII: Offences and penalties

• Offences and penalties: Defines penalties for non-compliance, such as providing false information or unauthorised use of terms like ‘digital asset business.’