Dominica’s Financial Services Unit (FSU) issued a directive to offshore banks licensed under the Offshore Banking Act No. 8 of 1996 to immediately cease using the term “Crypto Bank” or similar labels in public-facing communications and to stop implying they are authorised to conduct cryptocurrency or digital asset banking beyond the scope of their existing licence. The FSU cited specific instances across websites, advertisements, press releases, and social media, warning that such representations could mislead the public about regulatory status, permitted activities, and consumer protection. Acting under Section 22(a)(iii) and (viii) of the Financial Services Unit Act No. 18 of 1996, the directive also requires banks to stop disseminating any materials that could mislead consumers about their standing or services; within seven calendar days, banks must confirm in writing that non-compliant content has been removed or amended, provide revised marketing materials where applicable, and identify the compliance officer responsible for ongoing adherence. Non-compliance may lead to enforcement actions including administrative penalties and the suspension or revocation of the bank’s licence.
Dominica Financial Services Unit 2025-05-12
Dominica Financial Services Unit orders licensed offshore banks to stop marketing themselves as Crypto Banks
The Dominica Financial Services Unit has directed offshore banks licensed under the Offshore Banking Act No. 8 of 1996 to stop using the term “Crypto Bank” or similar labels and to cease implying authorisation to conduct cryptocurrency or digital asset banking beyond their existing licence scope. Acting under the Financial Services Unit Act No. 18 of 1996, the authority also ordered removal of misleading marketing materials and warned that non-compliance may result in administrative penalties and suspension or revocation of licences.