New Restrictions on Virtual Asset Activities

In a recent public notice, the FSC, via document FSC/2/PN/012, outlined new rules concerning virtual assets in accordance with the Financial Services Commission Act, Act No. 8 of 2023.

The Act strictly forbids the conduct of business involving virtual assets (defined to include cryptocurrencies, stable-coins, non-fungible tokens (NFTs), and certain in-game currencies) without a license. This covers activities such as the negotiation, brokerage, exchange, transfer, and management of virtual assets.

Moreover, until the 31st day of December 2025, the FSC will not issue any licenses for these virtual asset activities. Those who were conducting such operations before the Act’s commencement (15th April 2023) must inform the Commission and cease their activities within specified timelines.

Failure to adhere to these regulations could result in criminal sanctions under Section 81(6) and (7) of the Act. Thus, it’s crucial to stay informed about these updates if you’re involved in virtual asset activities.

Advertisement Restrictions

The FSC has also shed light on restrictions related to advertising in the public notice FSC/3/PN/013. According to Section 74 of the Act, no one except a person licensed, authorised, or approved under the Act should publish any advertisement connected with activities that require a licence, approval, authorisation, or registration under the Act.

Additionally, those who are licensed, authorised, or approved should not publish advertisements that are unclear, false, or misleading. Violations can result in the FSC imposing administrative sanctions, including monetary fines.

Restrictions on Providing Licensed Activities

Lastly, according to public notice FSC/3/PN/014, no person is allowed to provide the business of a financial service provider, registered agent, or managing services within Belize without a valid license from the Commission under the Act.

This rule applies regardless of any other Act, rule, regulation, or law to the contrary. Breaching these regulations constitutes an offence and can lead to penalties under Section 23(2) of the Act. The Commission can also pursue criminal sanctions against any entity that violates the Act.

In conclusion, the FSC’s recent updates highlight the importance of ensuring compliance with all regulatory standards if you’re operating in or dealing with the financial sector in Belize. It’s the responsibility of the public and stakeholders to stay updated on these restrictions related to virtual asset activities, advertisements, and provision of licensed activities.