Barbadians have been warned to verify that any online investment platform is licensed before using it to send money.
The advice came from Minister of Finance Ryan Straughn yesterday, as he introduced the Virtual Assets Service Providers Bill (2026) in the House of Assembly.
The Christ Church East Central MP said the legislation would give the public greater certainty about legitimate financial activity. It would also give authorities a legal framework to address digital fraud and to work with law enforcement in Barbados, the region and internationally.
Under the bill, any entity wanting to offer virtual asset services must first obtain a licence from the Financial Services Commission (FSC) and go through the same regulatory process as credit unions, insurance companies, mutual funds and other “bricks and mortar” non-bank financial institutions.
Straughn compared virtual services to everyday subscriptions such as Netflix, Microsoft and Google.
Consumers who have a problem with a bank or insurer could walk into an office and speak to a manager, he said, and the bill aimed to ensure there was a regulated, accountable provider behind virtual asset services too.
He noted that regulators could not stop online marketing. Pop-ups and inapp ads promising that a small deposit would turn into hundreds of dollars in a few days were, he said, impossible to prevent entirely. Technical solutions to block some of them were being explored, but he said the problem was so dynamic that the public must also protect itself.
“If nothing else, please check with fsc.gov.bb before you click and pay,” he said, repeating the message several times. Once money is sent to an unlicensed platform, he warned, it is often gone for good. He noted that the deposit insurance protections passed a few months ago, which widened coverage for credit unions, did not apply to such transactions.
“Hope is not a strategy,” Straughn said, cautioning those who keep sending money in the hope that things would work out. He also urged victims to report losses to the police so authorities could try to recover funds. The ease of making payments, including through a newly launched payment platform, did not replace the responsibility to confirm that a provider was legitimate, he added.
The minister said the Bill also made room for innovation. It contains provisions for a regulatory sandbox, an idea first floated after the Government took office in 2018, which would let regulators examine and test fintech products before they were released to the public. He said the goal was for Barbadians to have access to dynamic services under clear rules, particularly in the interest of financial inclusion.
Straughn said the legislation would also help protect the integrity of the financial system against criminals who might use virtual platforms to circumvent tax and legal requirements. He noted that Barbados had previously dealt with the Financial Action Task Force’s lists and faced a new round of evaluations.
He added that The Bahamas, Trinidad and Tobago and the OECS countries, with the exception of Antigua, had already passed similar legislation. He said that because such activity happened across border, regional co-operation was vital.
For Barbadians who have saved “a little change” and want to put it to work, Straughn said, the first question should be simple: “Is this person authorised to do this business in Barbados?” If the FSC has never heard of a provider, he advised, do not engage. (BA)