Country overview

#59
Dominica

Country stats

Rating Points
180
This indicator describes the overall rating of a given jurisdiction on several parameters according to cryptocurrency operations - market volume, crypto regulation, business climate, taxation framework.
Crypto Penetration
3%
Estimated percentage of crypto users out of the country's total population based on public data.
Legal Entities
0
Number of crypto companies registered in the country based on regulator data if available or other types of public data.
Regulation Points
140
An overall assessment of the granularity of crypto regulation in a given country. A high score is also given to countries where cryptocurrency transactions are highly regulated.
Amount of crypto users
2 000
Total amount of crypto users out of the country's total population based on public data.
Taxation points
35
This figure, according to our analysts' calculations, indicates the overall level of tax burden for cryptocurrency transactions in a given country. The higher the indicator, the lower the burden.
Market volume points
0
A rough estimate of this jurisdiction's retail crypto market relative to the rest of the world. The higher the indicator, the higher the market potential.
Status of crypto
Legally allowed
General status of cryptocurrency regulation in this jurisdiction.
Crypto payments
Legally allowed
The legal status of cryptocurrency payments for goods and services in a given country based on information from regulators, public data and feedback from our community.
Security Level
Minor danger
The overall level of security in a given country based on open data.
Crypto Salaries
No regulation
The legal status of cryptocurrency salaries to employers in a given country based on information from regulators, public data and feedback from our community.
Business Climate
Good
Overall assessment of the friendliness of this country for crypto-business. This indicator takes into account the cost of obtaining a license and the attitude towards crypto entities in the country.
Stablecoin Regulation
Low
This indicator is evaluating the regulation of stablecoins in a given country. Complex regulation means that it is possible to issue steiblcoins and obtain a license for this activity. Basic regulation means that the issuance of stablecoins is possible, but not all legal aspects are defined in the law. Standard regulation means that there is a legal practice of steylcoin circulation in a given country.
Bad Factors
No
This section describes the unfavorable economic factors for crypto-business in a given country. These are countries that are under sanctions or on the FATF grey list and other factors.
Types of licenses
Crypto-to-crypto
This license type allows VASP to provide legal exchange from one cryptocurrency to another.
Crypto-to-fiat
This type of license regulates the exchange from cryptocurrency to fiat.
Wallet/Custody
This country has a legal licensing procedure for companies that store cryptocurrency - crypto wallet providers and custodians.
Cryptofund
This indicator means that investment funds, trusts, and crypto funds can get regulator approval to provide their activity in the country.
ICO/STO
This indicator describes legal procedures for token sales and security token issuance. This country has a clear regulation framework and licensing procedures for entities that provide this activity.
Good
Medium
Bad
intro

Dominica is a small island in Eastern Carribean. It’s a member in Organization of Eastern Carribean States (OECS). These countries (Antigua and Barbuda, Commonwealth of Dominica, Grenada, Montserrat, Saint Kitts and Nevis, Saint Lucia and Saint Vincent and the Grenadines) have a joint Central Bank - ECCB (1).

According to Visaguide (2) Dominca has launched a program Work in Nature (WIN) in April 2021. It’s an analogue of the digital nomad visa, which gives a residence permit in the country. Program members don’t need to pay income tax and capital gain tax.

Security level

Dominica has a minor danger security level according to our rating.  

Crypto Payments

  Dominica has a close cooperation with Tron blockchain and HTX exchange linked to Justin Sun. According to our information Tron has an agreement (3) with the government of Dominica to make Tron a payment method on Dominica. Also it’s possible to use TRX, BTT, JST, NFT, USDD, USDT, and TUSD for legal crypto payments (4) in the country.  

Crypto Salaries

We don’t have information about crypto salaries in Dominica.

Legal

The Parliament of Dominica has approved in June 2022 The Virtual Asset Business Act (5). All VASPs operating in the country shall register by the Financial Services Unit (FSU). It’s a branch of the Dominica Finance Ministry responsible for enforcing anti-money laundering (AML) in the country. Types of virtual assets businesses include: “(a) exchange between a virtual asset and fiat currency; (b) exchange between one or more forms of virtual assets; (c) transfer of a virtual asset whether or not for value; (d) safekeeping or administration of a virtual asset or instruments enabling control over a virtual asset; and (e) participating in and provision of financial services related to an issue or sale of a virtual asset”;

Dominica is a member of The Eastern Caribbean Central Bank (ECCB) and implementation of The Virtual Business Act was a part of harmonization virtual asset regulations inside ECCB countries (6).

Cooperation between Dominica and Tron also led to launch digital identity service (DID Dominica) (7). Users of this service can generate Dominica Metaverse Bound Token (DMBT) authorized by government.

Taxation

Dominica has 15-35% personal income tax rate and 15-25% corporate income tax rate. According to Inland Revenue Department (8) “first $30,000 of taxable income are not taxed” and than it works a progressive scale. Taxable income is a profit derived from capital gains, royalties, interests, bonuses, etc.

However, according to NextGenerationEquity (9) non-residents pay only for their income from local sources. Based on IRD guide (10) offshore companies registered in Dominica have 20-year tax holidays.