Turks and Caicos Islands Financial Services Commission launches consultation on virtual assets bill covering virtual asset service provider licensing and stablecoin prudential rules

The Turks and Caicos Islands Financial Services Commission has launched a public consultation on the proposed Virtual Assets Business Bill, 2026, which would establish a comprehensive licensing, supervisory, prudential and enforcement framework for virtual asset service providers, stablecoin issuers, and virtual asset activities operating in or from the Turks and Caicos Islands. The draft would bring these activities within a single regime for authorization, ongoing oversight, and risk controls. The consultation covers licensing and supervision of virtual asset service providers, anti-money laundering, counter-terrorist financing and counter-proliferation financing obligations, prudential rules for stablecoins including tiered reserve and governance requirements, ICT and cyber resilience, sanctions and enforcement, and a regulatory sandbox. The Commission said the bill is aligned with Financial Action Task Force, International Organization of Securities Commissions, and Financial Stability Board guidance. It would exclude closed-loop tokens, technology providers that do not act as virtual asset service providers, and certain infrastructure providers. Written submissions must be received by 8 June 2026. Feedback will be used to refine the bill before it is submitted to Cabinet for approval in June 2026.