As Suriname moves forward with drafting new legislation to regulate virtual asset service providers, a leading parliamentary committee chair has laid out a centrist framework that balances financial security, international compliance and support for local small businesses.
Rabin Parmessar, chair of the committee of rapporteurs and a member of the NDP party, outlined his position during public debate on the Draft Act on the Supervision of Virtual Asset Service Providers on Friday. The core of his argument: the rapidly growing crypto and virtual asset sector must be placed under formal regulatory oversight to curb financial crime, but overly strict rules should not push small local entrepreneurs out of the emerging market.
The proposed legislation establishes formal supervision for all businesses and institutions offering services linked to virtual assets, a category that includes cryptocurrencies. Covered activities range from exchanging crypto for fiat currency and operating trading platforms to holding, transferring and managing crypto investments for clients. Under the draft bill, all providers would be required to obtain an operating license from the Central Bank of Suriname (CBvS).
Parmessar emphasized that regulation is non-negotiable for Suriname. Without proper oversight, he noted, virtual assets can be exploited for money laundering, terrorist financing and other illicit financial flows. The country is also required to update its regulatory framework to meet standards set by the Financial Action Task Force (FATF), the global anti-money laundering body. A weak legal framework, Parmessar warned, could harm Suriname’s international financial standing, damage correspondent banking relationships and disrupt cross-border payment flows. For these reasons, he argued, the debate is not over whether regulation is needed, but rather how to structure it fairly and effectively.
One major criticism Parmessar leveled at the current draft is that it grants excessive discretionary power to the Central Bank, leaving many critical regulatory terms to be defined later via central bank guidelines. Key areas left undecided include capital requirements, license classification schemes, technical operational standards, fine structures, reporting obligations and operating costs. Parmessar insisted that all core rules should be enshrined in the legislation itself. While the central bank should retain flexibility to work out technical details, parliament cannot give up its oversight authority over fundamental regulatory conditions, he said.
A second core priority for Parmessar is protecting the position of small domestic crypto businesses. He warned that small local providers should not automatically be held to the same strict requirements as large international crypto platforms. Instead, he called for a risk-based approach to regulation: larger firms that present greater systemic financial risk should face stricter requirements, while smaller operators face proportionate rules. This structure would prevent local entrepreneurs from being driven out of the market by excessive compliance costs and overly complex rules, a scenario that would leave the sector dominated exclusively by large foreign providers.
Parmessar also pushed for a clear transitional arrangement for businesses already operating in the sector. When the new law enters into force, all existing providers will be required to apply for a license. Parmessar said rules must be put in place to clarify whether and under what conditions providers can continue operating while their license applications are processed. Without this transitional framework, businesses could lose clients, employees and critical investment while waiting for a decision from the central bank.
Additionally, Parmessar called for strengthened legal protection for industry operators. The bill grants the central bank broad powers to issue fines, revoke licenses and halt unlicensed operations. Parmessar argued that businesses must have the right to file effective appeals against these far-reaching regulatory decisions.
Consumer protection is another area Parmessar says needs to be strengthened in the legislation. The law should clearly outline what happens to customers’ digital assets if a crypto firm declares bankruptcy or loses its license. It also needs to establish binding legal safeguards for cybersecurity, customer asset protection and anti-market manipulation measures, he added.
In closing, Parmessar said his parliamentary faction supports moving forward with the legislative process only if the current draft’s notable shortcomings are addressed meaningfully. He noted that the law should not be viewed solely as a tool to meet international obligations. A well-regulated digital financial sector, he argued, can open new opportunities for innovation, expanded financial services and broader economic diversification for Suriname.
“We must not leave the sector completely unregulated, but we also must not overregulate it to death,” Parmessar summarized his approach. The final legislation, he said, must provide a robust, workable framework that protects the country’s financial system, without unnecessarily excluding Surinamese entrepreneurs and stifling innovation.