The need for cross-border collaboration on digital assets
Digital assets are experiencing significant growth, prompting expectations for more lenient regulatory approaches. The rise in value is supported by mainstream adoption, including the UK's pilot program for digital gilts and various exchange-traded funds. This momentum necessitates a complex global financial ecosystem to accommodate decentralized finance (DeFi) businesses. Regulatory bodies are adopting cautious, risk-based strategies to mitigate risks while fostering innovation. The British Virgin Islands (BVI) has enacted the Virtual Assets Service Providers (VASP) Act, receiving over 80 license applications since 2023, and has established a regulatory sandbox for innovation. International cooperation is essential to combat financial crime and ensure compliance with standards like those from the Financial Action Task Force (FATF). The Caribbean region is encouraged to adopt cohesive regulatory frameworks similar to Europe’s Markets in Crypto-Assets (MiCA) regulation. Technological advancements, particularly in AI, enhance compliance efforts, but continuous education and skilled personnel remain crucial for maintaining financial integrity in the digital asset sector.
