The Caribbean country of Saint Kitts and Nevis has passed a bill, Virtual Asset Bill 2020, that legally recognizes cryptocurrencies. The act seeks to implement crypto-friendly regulation to businesses and residents of the island country.

Though the country’s Financial Services Regulatory Commission, it confirmed the new law within the Federation of islands. The two islands are members of the Commonwealth and the decision conforms with a similar bill that was passed in Antigua in 2018.

According to the country’s Prime Minister, Timothy Harris, the new law aims to ensure that each virtual asset services provider in the Federation is subjected to registration and the supervisory regime. He said it would also lead to compliance requirements within the legislative framework of the country’s AML and terrorists financing.

The new bill legally allows residents and crypto-related businesses to swap between virtual and fiat currencies. They can also swap between crypto assets, and easily transfer them, regardless of their value. Moreover, residents and businesses will enjoy custody and administration of their cryptos or wallets, giving them more control over their portfolio.