On May 4th, the government of Anguilla announced the “world’s first” blockchain token offering registration process for “utility tokens.” The Anguilla Utility Token Act or “AUTO Act,” is designed to facilitate clearly defined utility tokens that do not have a feature of a security. Anguilla says that there is no approved regulatory regime specifically non-securities cryptocurrency offerings.” For the sake of reference, Anguilla is a rather small nation. The British Overseas Territory has a population of around 15,000. Anguilla’s Chief Minister, Victor Banks said, “We believe this new AUTO Act will help Anguilla become the leader in establishing best practices for cryptocurrency offerings, to protect the people of Anguilla and the participating public.”
Enigma Blockchain, an Anguilla based company specializing in consultancy and management of initial coin offerings (ICO’s), advised the government’s creation of the AUTO Act. Enigma called the legislation a “pivotal move”
Enigma Director of Media Rickie Hodges stated;
“This act puts my home of Anguilla at the forefront of technology and at an extreme advantage since it’s now the first out the door for regulation. We now have visions of a digital campus to support the demands that are coming as Anguilla ICO’s are likely to become the best in class for cryptocurrency assets.”
Enigma Blockchain partners Judson Burdon and Chris Boundikas concur with the assessment. Burdon stated;
“It’s been a long journey in making this dream become a reality. This is not only incredible for the crypto community but as well for this beautiful island that we call a paradise in the middle of the Caribbean. This will stimulate economic development, education and provide regulatory measures that will leave out the cryptocurrencies that are fly-by-night.”
The Caribbean has seen a good degree of companies domiciling in the various tax and business friendly countries. But these idylic island locations are not alone in seeking a way to stand out as many, large developed nations struggle to enact bespoke laws to guide crypto-entrepreneurs. Multiple jurisdictions such as Switzerland, Malta, Gibraltar and perhaps France are trying to differentiate their regulatory environment.
“This move is a measured step by the current administration in changing the future for Anguilla from a beautiful tourism-dependent island to a more diversified Fintech ecosystem,” said Boundikas. “We congratulate the people of Anguilla for embracing such a change and a modern approach to finance.”