The Dominica Financial Services Unit (FSU) issued a cease-and-desist directive to offshore banks licensed under the Offshore Banking Act No. 8 of 1996 over marketing and public communications describing themselves as a “Crypto Bank” or as primarily focused on cryptocurrency-related services. The FSU said this terminology is unauthorized and may mislead the public about the bank’s regulatory status, the scope of its licensed services, and the level of consumer protection available. The directive prohibits using “Crypto Bank” or similar labels in any public-facing materials, making explicit or implied claims that the institution is authorised to conduct cryptocurrency or digital asset banking exclusively or beyond its current licence, and disseminating any materials that could misrepresent regulatory standing or services. Within seven calendar days, licensed offshore banks must confirm in writing that non-compliant content has been removed or amended, provide copies of revised marketing or promotional materials where applicable, and identify the compliance officer responsible for ongoing adherence. The FSU warned that non-compliance may lead to enforcement action, including administrative penalties and suspension or revocation of the bank’s licence.
Dominica Financial Services Unit 2025-05-12
Dominica Financial Services Unit directs offshore banks to stop using the term Crypto Bank in public communications
The Dominica Financial Services Unit issued a cease-and-desist directive to offshore banks under the Offshore Banking Act No. 8 of 1996, prohibiting them from using terms like "Crypto Bank" in marketing materials. The directive aims to prevent misleading public perceptions about the banks' regulatory status and service scope. Non-compliance may result in penalties, including licence suspension or revocation.