The Cryptocurrency Regulatory Framework in Grenada Prior to 2023

As of the period leading up to 2023, the legislative landscape for cryptocurrencies in Grenada remained largely undefined. The Grenadian government and financial regulators had not established explicit laws or regulations specifically governing the use, trade, and exchange of cryptocurrencies. This included widely recognized cryptocurrencies such as Bitcoin, Ethereum, Litecoin, Dogecoin, Tether, Cardano, USDT, XRP, and Monero. As a result, residents of Grenada were permitted to own and trade in cryptocurrencies, but they did so at their own risk due to the lack of a formal regulatory framework​​.

In the broader context of the Caribbean region, 2021 marked a significant development with the launch of DCash. This digital currency, an electronic version of the Caribbean Dollar, was introduced with blockchain technology as its underlying infrastructure. As of March 31, 2021, DCash became available for trading goods and was accessible in four island nations, including Grenada, St. Lucia, Antigua and Barbuda, and St. Kitts and Nevis. The introduction of DCash indicated a move towards embracing digital currency technologies within the region, although it was not a direct regulation of existing cryptocurrencies like Bitcoin or Ethereum​​.

Furthermore, while Grenada did not have specific legislation to regulate traditional cryptocurrencies, it showed an interest in exploring the potential of digital currencies in its monetary system. Grenada was a participant in the Eastern Caribbean Central Bank (ECCB) pilot program, which aimed to test the use of cryptocurrencies alongside the country’s national currency. This participation highlighted Grenada’s openness to understanding and potentially integrating digital currencies within its financial ecosystem, even though it had not yet formalized any regulatory measures specifically for cryptocurrencies​​.

In summary, prior to 2023, Grenada’s approach to cryptocurrency regulation was characterized by a lack of specific laws or guidelines, combined with a cautious openness to the possibilities offered by digital currencies, as evidenced by its participation in regional initiatives like the DCash launch and the ECCB pilot program. This landscape presented a scenario where individuals and businesses could engage in cryptocurrency transactions, but without the safeguards and clarity that formal regulations might provide.