ECCB warns Bitcoin ATM not authorized by regulators

It has come to the attention of the Eastern Caribbean Central Bank (ECCB) and the Financial Services Regulatory Commission of St Kitts and Nevis (FSRC) that a Bitcoin ATM has been installed at a location in the Federation of St Kitts and Nevis.

It is also our understanding that there are plans for the installation of similar machines in other locations in the Federation.

The public is hereby cautioned that the operation of Bitcoin ATMs or any other sort of cryptocurrency operations is not currently regulated by the ECCB, the FSRC St Kitts and Nevis or by any regulatory authority in the Eastern Caribbean Currency Union (ECCU).

In addition, bitcoin or any issuer of bitcoin has not been designated under the Payment System Act in St Kitts and Nevis. This means that there are no existing regulations to specifically protect consumers from financial losses if an organisation that exchanges or holds virtual currencies fails or goes out of business.

In other words, persons who choose to use these services or are contemplating use of these services ought to understand that they do so completely at their own risk. The extent of this risk, at this point in time, is not fully known given the novelty of the area and the absence of regulatory oversight.

The ECCB issued an advisory on 5 June, 2018 recognising developments in the FinTech space and encouraging consumers to be cautious in their use. Indeed, the consuming public was asked to consider several questions when considering involvement. Click here for more: (https://www.eccb-centralbank.org/news/view/eccb-advisory-on-fintech-operations-in-the-eccu).

The ECCB and the FSRC recognise that financial innovation is essential, however the appropriate legal and regulatory framework is necessary to protect the integrity of the financial system and investors and consumers alike.

At this stage, the ECCB, as a regional regulator, is pressing ahead with its work to advise the Governments of the ECCU on an appropriate regional framework for FinTech regulation and supervision as well as a strategy to reduce the use of cash to help boost growth and competitiveness.

To this end, the ECCB will be working with other national regulators within the ECCU to adopt a common approach.

Copyright 2012 Dominica News Online, DURAVISION INC. All Rights Reserved. This material may not be published, broadcast, rewritten or distributed.

Disclaimer: The comments posted do not necessarily reflect the views of DominicaNewsOnline.com and its parent company or any individual staff member. All comments are posted subject to approval by DominicaNewsOnline.com. We never censor based on political or ideological points of view, but we do try to maintain a sensible balance between free speech and responsible moderating.

We will delete comments that:

  • contain any material which violates or infringes the rights of any person, are defamatory or harassing or are purely ad hominem attacks
  • a reasonable person would consider abusive or profane
  • contain material which violates or encourages others to violate any applicable law
  • promote prejudice or prejudicial hatred of any kind
  • refer to people arrested or charged with a crime as though they had been found guilty
  • contain links to "chain letters", pornographic or obscene movies or graphic images
  • are off-topic and/or excessively long

See our full comment/user policy/agreement.

6 Comments

  1. My opinion NOT yours
    July 6, 2018

    Some ppl like to spoil it for others
    You don’t want to take the risk well don’t get involved
    1 bitcoin is equal to US$ 6,512.50
    Dominica was going to be the 1st bitcoin country couple yrs ago
    But it was never going to happen because of our backward minded people, you don’t like it just stay away and let who want to do it do it.
    After they cry it down all of them running America or England where they using it

  2. woi
    July 5, 2018

    bitcoin atm worldwide click on link below
    https://coinatmradar.com/countries/

    barter to metal to paper to cheque to card to online banking to mobile banking to cryptocurrency. money will keep evolving even if we like it or not, agree or not, do it or not.

  3. dead pirate
    July 5, 2018

    Anyways eccb this is the times we live in,,an anybdy using criptos knows the risk ,,u must be verry inform to try to use criptos,,,

  4. July 5, 2018

    What I take away from this is that there are also presently no regulations in the way of developing cryptocurrency exchange and related FinTech as an industry in the region. Hopefully whatever is put in place, if anything, will be as modest realistic as possible.

  5. Uncle
    July 5, 2018

    I don’t understand. If the ATM is not authorized and they are so concerned why can’t they c;lose it down? Can somebody explain that please.

    • July 6, 2018

      It’s not an ATM. It’s a kiosk at which one can buy or sell Bitcoin and other cryptocurrencies. They look a bit like ATMs, but to call them that is somewhat misleading.

Post a Comment

Your email address will not be published. Required fields are marked *

:) :-D :wink: :( 8-O :lol: :-| :cry: 8) :-? :-P :-x :?: :oops: :twisted: :mrgreen: more »

 characters available