Ban vs. Protection: Why Trinidadian Consumers Deserve Smart Crypto Regulation
In Trinidad and Tobago, citizens deserve financial tools that are safe, fair, and accessible. Cryptocurrencies are increasingly part of the global financial landscape—but the government’s approach, including the temporary prohibition proposed in the Virtual Assets and Virtual Asset Service Providers (VAVASP) Bill, 2025, could either protect consumers or leave them dangerously exposed.
For the everyday citizen, the choice is clear: a ban puts consumers at maximum risk, while smart regulation empowers and safeguards them.
1. The Hidden Costs of a Ban: Zero Recourse
Criminalizing or temporarily banning virtual asset activities does not stop the activity; it merely forces it underground and into unmonitored channels. This exposes ordinary citizens to fraud, scams, and financial loss with no legal safety net.
Zero Recourse for Losses is Legally Cemented: Current warnings from the Central Bank and TTSEC rightly state that unregulated crypto losses are not covered. The proposed Bill, with its severe penalties for unauthorized activity, threatens to legally cement this lack of protection. If a citizen loses funds to a scam, they have no legal right to approach a local body for recovery, as they would be engaged in an illegal or prohibited act.
Higher Costs & Unchecked Risks: A ban compels consumers to use informal, peer-to-peer (P2P) systems or overseas exchanges with no local oversight. This introduces:
Unregulated fees and poor exchange rates, directly hurting the consumer's pocket.
Increased counterparty risk of physical theft or online fraud.
No guarantee the platform is secure or trustworthy, making the consumer an easy target for scams the authorities currently warn against.
Hurting Remittances: For everyday Trinidadians trying to send or receive money from family abroad, a ban raises costs and delays transactions, directly penalizing those who rely on the faster, cheaper alternative that crypto often provides.
2. Why Consumers Benefit From Smart Regulation
Regulation puts consumer safety first, ensuring service providers are held accountable and transforming the market from a legal grey area into a secure environment.
| Consumer Protection Mandated by Regulation | What a Ban Guarantees |
| Licensing & Accountability for all Virtual Asset Service Providers (VASPs). | Anonymity for all service providers, local or foreign. |
| Clear Risk Disclosure and transparent fees. | Hidden fees and undisclosed, high-risk practices. |
| Capital Requirements to protect consumer deposits against platform loss. | Zero financial stability requirement, increasing collapse risk. |
| Local Dispute Resolution via a regulated body (TTSEC/Central Bank). | Zero Recourse—consumers are left to fend for themselves. |
Properly regulated crypto can reduce costs and speed up remittances, providing financial inclusion for citizens without easy access to bank accounts. Regulation transforms crypto from a risky, underground activity into a tool that directly benefits the consumer.
3. Protecting Consumers While Combating Crime
The government’s concern about Money Laundering and Terrorist Financing (ML/TF) is valid, but a ban is a counter-productive strategy. Criminals will still move funds, now completely hidden from law enforcement.
The Financial Action Task Force (FATF), whose compliance T&T is actively working on, explicitly recommends regulation, registration, and supervision of VASPs—not blanket prohibition.
Regulation Brings Visibility: Licensed VASPs must implement Strict Know-Your-Customer (KYC) and Anti-Money Laundering (AML) requirements. Every regulated transaction is documented, monitored, and traceable, giving the Financial Intelligence Unit (FIUTT) the data it needs to combat crime effectively.
A Ban Drives Crime Darker: The temporary prohibition proposed in the Bill will simply push legitimate users and small businesses into the shadows, making the entire ecosystem less transparent and harder for the FIUTT to police.
Our Call to Action
Trinidadian consumers deserve the same protection and opportunities afforded to citizens in other regulated Caribbean markets like The Bahamas and Bermuda. We urge policymakers to:
Shift the focus from a two-year prohibition to the immediate development and implementation of a risk-based, pro-consumer regulatory framework.
Mandate licensing and supervision of all local crypto platforms by the TTSEC and Central Bank.
Ensure clear consumer protections are at the heart of the VAVASP Bill—guaranteeing transparency, dispute resolution, and recourse in case of loss.
Every citizen engaging with virtual assets deserves legal safeguards, transparency, and recourse. A ban removes all of that. Smart, swift regulation is the consumer-first path forward for Trinidad and Tobago.
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