The Barbados Blockchain Proposition

Build in Barbados Serve the World

WHY BARBADOS FOR BLOCKCHAIN? BARBADOS PROFILE
✓ The right regulatory environment to encourage innovation. ▪ Area: 166 Sq. miles/ 430 Sq. Km.

✓ Excellent ICT infrastructure with island-wide 4G LTE and Fiber ▪ Capital: Bridgetown
Optic high-speed internet.
▪ Government: Democratic
✓ Home to Bitt, the first blockchain start-up in the Caribbean.
▪ Legal System: Derived from English Common
✓ Home to Shyft, Polymath, Novelty Curve, Aion Foundation, Law and Statutes.
Digital Asset Fund and more.
▪ Time Zone: GMT – 4 hours
✓ Access to a regulatory sandbox for live testing innovative
financial & technological products and services. ▪ Population: 275,400

✓ Availability of a globally-recognized, national stock exchange ▪ Literacy Rate: 98%

with a pending market for Digital Assets.
✓ Highly-skilled workforce and strong computer science program
at the university.
✓ Access to a pool of business professionals offering the full range
of corporate services.
▪ Climate Air temperature: 22-33C/ 70-90 F
▪ Currency: Barbados Dollar (BDS $)- Fixed
Parity BDS $ 1.00- US $0.50

“This country will now march boldly into the 21st Century, leapfrogging who we must leapfrog, in order to be
allowing us to be globally fit for purpose.. We say to the world, Barbados is open, not just for business, but for
transformation.”
The Honorable Mia Amor Mottley, Q.C., M.P., Prime Minister of Barbados.

“The Barbados Stock Exchange is readying itself to facilitate the issuance, listing and trading of digital assets on
a platform – and in a jurisdiction – that is fair, efficient and transparent.”
Marlon Yarde, Managing Director, Barbados Stock Exchange Inc.

“Barbados has the right ingredients to make it an innovation hub: an excellent ICT infrastructure, skilled
workforce at competitive cost, great corporate structures and a Government that supports innovation. Expect to
see amazing things from this beautiful country.”
Roland Haggins, CARICOM Director, Aion Foundation

WHY BARBADOS FOR BUSINESS?

Though small in size, Barbados continues to attract business with its proven record of being a stable, modern, treaty-based,
and cost-effective jurisdiction. The Government of Barbados, in concert with its strategic partners from the private sector,
remains committed to positioning Barbados as the International Business Hub of Choice in the Western Hemisphere.
DIGITAL ASSETS & BARBADOS
The Barbados Stock Exchange (BSE) is pleased to announce the pending launch of its Special Facility for listing and trading
Digital Assets on its International Securities Market (ISM).

The BSE recognises that the range of Digital Assets are variously
described as cryptocurrencies, tokens, or crypto-assets in popular
nomenclature.

The Exchange has preferred the term Digital Assets, and has defined
that term in the Special Facility to include the full range of
commercial assets, which represent a cryptographically secured
digital representation of a set of rights provided on a digital
platform issued or created (or to be issued or created), for
commercial exploitation or reward, and which are exchanged and
traded or cleared on a network of inter-linked and secured
decentralised digital records (blockchain).

The Special Facility is intended to extend to all such Digital Assets, irrespective of the nomenclature used and whether
described as security tokens, utility tokens, payment tokens, cryptocurrency, crypto-assets, coins, programmable
security, smart security or otherwise, and is not intended to exclude any specific set of rights or asset which is within
the compass of the definitions of the rules of the Special Facility.

Permissible Digital Assets Recognized Platforms

The categories of Digital Assets which may be admitted to listing are
not limited to any specific category of digital assets.
The Digital Assets must however have embedded a financial or
investment purpose. The Rules of the Special Facility are intended
to include traditional and non-traditional forms of digital assets
however created. The essential requirement is that the digital asset
be created for commercial value or with the intention of reward.
The Digital Assets which may be admitted to listing include the
more traditional digital representations of value intended to
represent debt or equity in the issuer, as well as digital
representations which are (a) used as a medium of exchange, unit
of account, or store of value and is not legal tender, whether or
not denominated in legal tender; (b) intended to represent any
assets or rights associated with such assets; and (c) intended to
provide access to an application or service or product by means of
the blockchain. It would not include non-commercial exploitation
and in the normal course transaction a digital asset granting value
as part of an affinity or rewards program, which value cannot be
taken from or exchanged with the person for legal tender, bank
credit or any digital asset; or a digital representation of value
issued by or on behalf of the publisher and used within an online
game, game platform, or family of games sold by the same
publisher or offered on the same game platform would not be
capable of being listed.
The Exchange recognises that the trading and exchange of
Digital Assets does not require trading on a trading
platform provided by the ISM, as trading and clearing
facilities may be executed on another Recognised Platform
for such Digital Assets.
In the event that any listed Digital Assets are intended to
be traded on a trading platform provided by the ISM,
pending the issue of further Rules or Guidance Notes, the
Exchange shall facilitate the trading and clearance of the
listed Digital Assets by contractual trading arrangements
intended to operate in conjunction with the specific rules
in the Special Facility.
Special Admissions Panel
The Exchange proposes to establish a panel of experts
constituted of technology experts, software engineers,
valuers, legal professionals and accountants and any other
qualified persons to assist the Exchange in determining
the relevant conditions for the listing of any Digital Asset
on the Exchange.
REGULATORY SANDBOX
The Central Bank of Barbados (CBB) and the Financial Services Commission (FSC) have established a Regulatory Sandbox where
entities can do live testing of their products and services.

Advances in financial technology (Fintech) have led to the emergence of products and services that have the potential to
make conducting financial transactions more efficient and less expensive. However, the rapid evolution of Fintech also
means that these innovations might not be captured under current financial sector legislation.

What benefits can it bring?

The main benefit of a regulatory sandbox is to
accelerate the compliance of innovative business
models with present day regulations without
compromising consumer protection or stifling the
fast pace and growth of innovative Fintech
companies.

For Barbados, we see this as a way of encouraging

innovation while promoting sustainable
development through such innovation.

Additional Benefits
FAQ The advent of a regulatory sandbox regime also:
Who can participate?
▪ Facilitates regulatory and fintech collaboration
To be eligible to participate in the Regulatory Sandbox, the product or service
being offered by the business must: ▪ Encourages cross-collaboration between
▪ represent a genuine financial innovation; fintech startups and legacy companies
▪ use technologies that are currently unproven and whose failure would give rise to ▪ Provides a space for fintech firms to manage
risks to consumers or financial stability; their regulatory risk prior to product launches

▪ as a result of new technologies or practices, create ambiguity as to the appropriate ▪ Creates an environment where Regulators can
regulatory regime for the product or service; learn from different fintech companies and
draft appropriate and responsive legislation
▪ have been subject to adequate and appropriate functionality and risk assessments. that is based on an identified – rather than a
perceived – need.
How long does participation in the Regulatory Sandbox last?

The duration of a business’ participation in the Regulatory Sandbox will be

determined by a Regulatory Review Panel (RRP) based on the nature and
complexity of the product or service. Contact
Need more information? Please contact:
Based on issues or concerns that emerge during testing, the RRP may extend the
time beyond what was originally anticipated. A business can also request to ▪ Central Bank of Barbados
have the time extended. regsandbox@centralbank.org.bb
+1 246 436-6870

What happens on completion of the Regulatory Sandbox? ▪ Financial Services Commission

regsandbox@fsc.gov.bb
Once a business has successfully completed testing in the Sandbox, the RRP will
+1 246 421-2142
issue a report that outlines how the product or service performed during its
participation in the Regulatory Sandbox and determine if a regulatory
framework is required.
BUSINESS FRIENDLY JURISDICTION

▪ No restriction on foreign ownership of business enterprises and property

▪ No capital gains, wealth or inheritance taxes

▪ Well-developed legal system based on common law

▪ Expanding network of double taxation agreements (DTAs) and bilateral investment treaties with
countries across the world

▪ Reputable international banks

▪ Special entry and resident permits for qualified non-nationals

▪ International airport offering direct daily flights to major cities, and a modern seaport.

▪ High Quality Jurisdiction - Barbados ranks 5th in Latin America and the Caribbean (2017 UN Human
Development Index).

TAX RATES IN BARBADOS

Barbados is one of the first countries in the world to converge its local and international tax rates, a move that will significantly
enhance your business’ global competitiveness.

Barbados’ corporate tax rates are as follows:

Incorporating as a Regular Business Company (RBC) or

Taxable Income (US$) Rate %
Society with Restricted Liability (SRL) offers a number
Up to $500,000 5.50 of tax-smart advantages, allowing your enterprise to
Above $500,000 to $10 million 3.00 operate globally with ease and efficiency.

Above10 million to $15 million 2.50 CONSULT WITH A BARBADOS SERVICE PROVIDER FOR
Above $15 million 1.00 MORE INFO ON ESTABLISHING CORPORATE VEHICLES.

OTHER BUSINESS OPPORTUNITIES IN BARBADOS UNPARALLELED TAX TREATY NETWORK

▪ Financial Services The Barbados treaty network is unmatched – in scale
and scope – in the Caribbean:
▪ Information Services
Austria, Bahrain, Botswana, Canada, CARICOM*, China, Cuba, Czech Republic,
40 Cyprus, Finland, Iceland, Italy, Luxembourg, Malta, Mauritius, Mexico,
▪ Niche Manufacturing DTAs Netherlands, Norway, Panama, Portugal, Qatar, San Marino, Seychelles,
Singapore, Spain, Sweden, Switzerland, U.A.E., U.K., U.S.A., Venezuela

▪ Health Tourism/Medical Schools 9 Canada, China, Cuba, Germany, Italy, Mauritius, Switzerland,
BITs U.K., Venezuela
▪ Alternative and renewable energy
4 Denmark, Faroe Islands, Greenland,
TIEAs South Africa

* The CARICOM DTA encompasses 10 countries