Bolivia Compliance Report

Generated 2026-09-22

Comprehensive Framework

Regulatory Overview

Regulatory Status: Dedicated crypto/VA legislation, licensing regime, active enforcement
Key Regulator(s): Part of the Ministry of Economy and Public Finance, Authority for the Supervision of the Financial System, Ministry of Economy’s November, Ministry of Finance
Primary Legislation: s stance has been consistent, the global landscape of cryptocurrency regulation is rapidly evolving. It
Travel Rule: Not adopted
Tax Reporting: BCB Resolution N° 044/2014 (May 6, 2014): This resolution explicitly prohibits financial institutions regulated by the Authority for Financial System Supervision (ASFI) from using, commercializing, or trading cryptocurrencies (referred to as "any type of currency not issued and regulated by governments"). It also prohibits the use of such currencies in payment systems. While the resolution directly targets regulated entities, its broad wording and the BCB's monetary authority effectively ban the use of cryptocurrencies for any transaction within Bolivia.. BCB Communiqué (May 14, 2021): The BCB reiterated its 2014 prohibition, emphasizing that cryptocurrencies are not issued by monetary authorities, are not backed by any government, and lack legal tender status. It warned of the risks associated with their use, including potential fraud and lack of protection for users.. While Bolivia still has no specific capital gains tax provisions for cryptocurrencies because they were historically banned, the regulatory status has evolved—banks are now permitted to operate with crypto—so the premise that cryptocurrencies are absolutely banned is outdated. However, the lack of a traditional capital gains tax framework remains accurate.. No specific provisions. Income generated from illegal activities might theoretically still be subject to general income tax principles in some jurisdictions, but in Bolivia, the lack of legal recognition of crypto makes applying existing income tax laws (e.g., Impuesto sobre las Utilidades de las Empresas - IUE for businesses, Régimen Complementario al Impuesto al Valor Agregado - RC-IVA for individuals on certain income types) to crypto-related earnings highly problematic and undefined. It is not something the tax authority provides guidance on for banned assets.. As of 2025, Bolivia has lifted its absolute ban on cryptocurrencies, allowing banks to process stablecoin transactions and making ownership legal. However, the National Tax Service (SIN) has not issued specific IVA guidance for crypto transactions, and cryptocurrencies are still not recognized as legal tender or goods/services for VAT purposes, leaving the tax framework unclear.

Key Facts

aml Regulatory Bodies: The Financial Intelligence Unit (UIF) within the Ministry of Economy and Public Finance is tasked with monitoring and enforcing AML/CFT measures. Bolivia is also a member of GAFILAT, a FATF-style regional body that supports countries in implementing effective AML/CFT regimes. Primary Laws: Bolivia’s AML/CFT framework is largely derived from FATF Recommendations and local decrees. Supreme Decree 1533 (April 2013) outlines asset freezing procedures, while Supreme Decree 910 (May 2014) transferred UIF control to the Ministry of Economy and Public Finance. International Standing: Bolivia is listed on the FATF’s “jurisdictions under increased monitoring” list as of June 2025, indicating strategic AML deficiencies that require enhanced oversight and compliance measures. Entities Requiring License: No specific license is mandated solely for cryptocurrency exchanges or digital asset service providers. However, entities engaging in money transmission, exchange houses, and other financial activities may be subject to general licensing under Bolivia’s Financial Services Law. Capital Requirements: The applicable capital thresholds are not explicitly defined for crypto-related operations but are generally aligned with those required for traditional banking and financial services, which vary based on the type of activity. Application Process & Timeline: The UIF oversees reporting and monitoring; however, detailed procedural steps for crypto-specific licensing are absent. Applicants must generally comply with standard AML/CFT due diligence processes. Structural Requirements: No explicit structural prerequisites are outlined for crypto businesses, but adherence to general financial institution standards (e.g., segregation of duties, internal controls) is implied. Customer Due Diligence (CDD): Enhanced due diligence is mandatory for politically exposed persons (PEPs) and high-risk customers, applying to all financial services, including potential crypto-related activities.
cross border Superintendencia de los Servicios Financieros (SUSCO): The primary regulator overseeing financial services in Bolivia, including digital asset activities. Website: https://www.susco.gob.bo/ Banco Central del Estado de Bolivia (BCDB): Responsible for monetary policy and oversight of the financial system, indirectly affecting crypto operations. Website: https://www.bcdb.gov.bo/ Law No. 8768 on Financial Services: Regulates banking and non-banking financial institutions but does not explicitly address cryptocurrencies. Article 1 defines "financial services," which may encompass crypto-related activities under broader interpretations. https://www.gac.bolivia.gob.bo/ Law No. 8743 on Anti-Money Laundering (AML): Requires AML/KYC compliance for financial entities, potentially extending to crypto service providers through supervisory guidelines. Article 2 outlines obligations for suspicious activity reporting. https://www.gac.bolivia.gob.bo/ Resolución No. 001-2020 de la SUSCO: Provides AML/KYC requirements applicable to crypto service providers, mandating registration and ongoing compliance. https://www.susco.gob.bo/ Who Needs a License: No specific license is required solely for operating cryptocurrency exchanges or VASPs in Bolivia. However, entities facilitating crypto-to-fiat transactions may fall under the purview of SUSCO's licensing framework for money transmission services. Activities Requiring Licensing: Money transmission, payment processing involving virtual assets, and any activity deemed a "financial service" by SUSCO could necessitate registration as per Law No. 8768. Capital Requirements: Not explicitly defined for crypto-related activities; compliance with general financial institution capital adequacy standards may apply indirectly.
custody Bolivia is not currently integrating digital‑asset custody rules into its family‑law statutes; existing law still imposes a blanket prohibition on cryptocurrency activities and contains no family‑law‑specific reforms. Institutions offering digital asset custody services are not required to obtain licenses from the Central Bank of Bolivia, and Bolivia has not enacted a Decree No. 3042 of 2023 establishing such licensing or AML/KYC obligations. Tax Implications: Cryptocurrency transactions are subject to a 15% income tax on gains, affecting both custodial arrangements for digital assets and traditional family property distributions. Gaps and Risks: Despite progress, challenges remain in harmonizing custody laws across jurisdictions and ensuring robust protection against third-party institutional harm in custody disputes involving digital assets. Submission of a detailed business plan outlining the proposed custody operations, including risk management strategies. Demonstration of financial solvency, requiring a minimum capitalization of Bolivianos (BOB) 500 million ($72 million USD as of Q1 2025). Implementation of internal controls to ensure compliance with AML/KYC regulations. Customer Identification Program (CIP): Verification of customer identity through government-issued IDs and biometric data where applicable.
enforcement Violation Type: Primarily fraud, pyramid scheme (estafa con promesa de rendimientos extraordinarios), illicit financial intermediation, and sometimes money laundering. Cryptocurrencies are often a tool used in these schemes to obscure transactions or give an appearance of legitimacy/innovation. Penalty Amount: Not applicable as a direct "penalty for crypto violation." Penalties are sought under existing criminal laws for fraud, which can include imprisonment and restitution to victims. Specific fines for the crypto aspect are not typically levied. Outcome: Arrests of perpetrators, freezing of assets (where possible), public warnings against these types of investments, and ongoing legal proceedings for fraud. The use of cryptocurrencies in these schemes often complicates asset recovery due to their decentralized nature. Outcome: Arrests of perpetrators, freezing of assets (where possible), public warnings against these types of investments, and ongoing legal proceedings for fraud. The use of cryptocurrencies in these schemes often complicates asset recovery due to their decentralized nature.
general The Banco Central de Bolivia (BCB) issued Resolution 042/2014 (May 6, 2014), which explicitly prohibits the use, commercialization, and negotiation of any currency or monetary instrument not issued and regulated by the national monetary authority. This effectively banned cryptocurrencies and related services within Bolivia. However, this prohibition has been partially superseded by subsequent regulatory developments including Supreme Decree 5360 (December 2024) and ASFI's 2023 framework allowing regulated virtual asset operations. URL (BCB official site - relevant news/statements often linked from here): https://www.bcb.gob.bo/ This means that historically there were no specific VASP licensing or regulatory frameworks for AML/KYC because the activity itself was generally disallowed. However, since 2023, ASFI has been developing a regulatory framework for virtual asset services, and Supreme Decree 5360 (2024) authorized regulated VASP operations under ASFI supervision. Any entity operating as a VASP without proper authorization would be in violation of regulations. Law No. 004 of Corruption, Illicit Enrichment and Investigation of Fortunes "Marcelo Quiroga Santa Cruz" (Ley N° 004 de Lucha contra la Corrupción, Enriquecimiento Ilícito e Investigación de Fortunas “Marcelo Quiroga Santa Cruz”): This is the foundational anti-corruption and anti-money laundering law in Bolivia. It establishes the framework for prosecuting corruption and illicit enrichment and outlines obligations for preventing money laundering. Supreme Decree No. 2145: This decree regulates Law No. 004 and details the structure and functions of the Financial Investigations Unit (UIF). Collecting full legal name, date of birth, address, and national identification number (e.g., Cédula de Identidad). Verifying identity using official, reliable, independent source documents (e.g., valid government-issued ID). Beneficial Ownership: Identifying and verifying the identity of the beneficial owner(s) if the customer is a legal entity or arrangement.
licensing Bolivia has shifted from a complete ban on cryptocurrencies to a regime of controlled regulation, so the regulator no longer issues advisories reiterating a ban but instead implements new regulatory frameworks. Investigations and arrests related to fraud or pyramid schemes that utilize cryptocurrencies: These are often led by the police and public prosecutor's office, with the primary violation being fraud or illicit financial schemes, rather than simply possessing or trading crypto. Regulator/Agency Involved: Policía Boliviana (Bolivian Police), Ministerio Público (Public Prosecutor's Office), ASFI (Autoridad de Supervisión del Sistema Financiero) often issues warnings preceding or accompanying these actions. Entities Targeted: Individuals and groups operating fraudulent pyramid schemes, often referred to as "financieras digitales" (digital financial companies) or "inversiones digitales." Specific names that have appeared in the news include "G7 Inversiones," "Omega Pro," "Mind Capital," "Financiera Digital," among others. Date: Various actions occurred throughout 2022 and 2023. For instance, "G7 Inversiones" was prominent in mid-2022. "Omega Pro" and similar schemes saw crackdowns in late 2022 and early 2023. El Deber: Gobierno advierte sobre estafas con criptomonedas y "G7 Inversiones" es el foco
sanctions ASFI Circular 471/2014 (October 2014): The Bolivian Financial System Supervision Authority (ASFI) issued this circular, explicitly prohibiting financial institutions under its supervision from using, transacting, holding, or intermediating cryptocurrencies (referred to as "any type of currency that is not issued and regulated by a state"). This effectively bars banks, payment processors, and other regulated financial entities from engaging with crypto. Legal Reference: Circular ASFI/471/2014 (While a direct ASFI URL might change, it's widely referenced in Bolivian financial news and legal analysis. You might find it cited on legal databases or financial news sites in Bolivia. A general search for "ASFI Circular 471/2014" will confirm its existence and content.) Bolivia has shifted from a complete ban on cryptocurrencies to implementing controlled regulation, allowing for the possibility of legally operating Virtual Asset Service Providers within a regulated framework, contrary to the implication that no such providers exist legally. Bolivia has moved from a total cryptocurrency ban to a regulated framework where crypto is legal for commercial activities, though financial institutions operate under controlled regulation. U.S. persons globally (citizens, permanent residents, entities incorporated in the U.S. or subject to U.S. jurisdiction). All bank transfers in U.S. dollars within and from Bolivia are subject to a 0.03% Financial Transaction Tax (ITF), but are not prohibited or banned. Non-U.S. persons engaged in certain activities that facilitate violations by U.S. persons or designated entities, or that contravene specific OFAC programs (e.g., dealing with Specially Designated Nationals (SDNs)). As of June 2024, Bolivia has lifted its blanket ban on cryptocurrency and is developing a nascent regulatory framework for Virtual Asset Service Providers (VASPs), but established, detailed requirements for VASPs are not yet in place.
securities The Bolivian securities depository serves as a central hub for the registration, custody, and settlement of securities issued by both domestic and foreign entities operating in Bolivia. It ensures transparency, reduces transaction risks, and facilitates efficient trading mechanisms within the Bolivian stock exchange (BBV). Digital Infrastructure: The depository leverages advanced digital platforms to manage electronic securities, enhancing speed and accuracy of transactions. Regulatory Compliance: Operates under strict regulatory oversight by Bolivia’s financial authorities to maintain market integrity and investor protection. Multi-Asset Support: Supports a variety of asset classes including stocks, bonds, mutual funds, and exchange-traded products (ETPs). Efficiency in Settlements: Reduces settlement cycles from T+X days to near real-time processing, thereby improving liquidity. Risk Mitigation: Centralized custody minimizes counterparty risk by holding securities in a secure, regulated environment. International Integration: Facilitates cross-border transactions, making it easier for foreign investors to participate in the Bolivian market.
status Plurinational Legislative Assembly (PLA): Responsible for enacting laws; website: https://www.pluralista.gob.bo/ Supreme Decrees: Executive orders issued by the President under Article 172 of the Constitution, published in the Gaceta Oficial del Estado Plurinacional de Bolivia. Political Constitution of Bolivia (2009): The supreme law; establishes executive powers and constitutional guarantees. Gaceta Oficial del Estado Plurinacional de Bolivia: Official gazette where all legislative and regulatory decrees are published. Bolivia is not listed as a member or observer in FATF’s list of jurisdictions requiring enhanced AML/CFT measures for virtual assets, indicating no specific recognition or monitoring by international financial authorities concerning crypto regulation. The Bolivian Legal Framework - GlobaLex Bolivia's Regulatory Reform Moment - by James Broughel Bolivia lacks specific legislation addressing cryptocurrencies, creating a regulatory gray area. The Bolivian Legal Framework - GlobaLex
tax BCB Resolution N° 044/2014 (May 6, 2014): This resolution explicitly prohibits financial institutions regulated by the Authority for Financial System Supervision (ASFI) from using, commercializing, or trading cryptocurrencies (referred to as "any type of currency not issued and regulated by governments"). It also prohibits the use of such currencies in payment systems. While the resolution directly targets regulated entities, its broad wording and the BCB's monetary authority effectively ban the use of cryptocurrencies for any transaction within Bolivia. BCB Communiqué (May 14, 2021): The BCB reiterated its 2014 prohibition, emphasizing that cryptocurrencies are not issued by monetary authorities, are not backed by any government, and lack legal tender status. It warned of the risks associated with their use, including potential fraud and lack of protection for users. While Bolivia still has no specific capital gains tax provisions for cryptocurrencies because they were historically banned, the regulatory status has evolved—banks are now permitted to operate with crypto—so the premise that cryptocurrencies are absolutely banned is outdated. However, the lack of a traditional capital gains tax framework remains accurate. No specific provisions. Income generated from illegal activities might theoretically still be subject to general income tax principles in some jurisdictions, but in Bolivia, the lack of legal recognition of crypto makes applying existing income tax laws (e.g., Impuesto sobre las Utilidades de las Empresas - IUE for businesses, Régimen Complementario al Impuesto al Valor Agregado - RC-IVA for individuals on certain income types) to crypto-related earnings highly problematic and undefined. It is not something the tax authority provides guidance on for banned assets. As of 2025, Bolivia has lifted its absolute ban on cryptocurrencies, allowing banks to process stablecoin transactions and making ownership legal. However, the National Tax Service (SIN) has not issued specific IVA guidance for crypto transactions, and cryptocurrencies are still not recognized as legal tender or goods/services for VAT purposes, leaving the tax framework unclear. No specific requirements. As the use and trading of cryptocurrencies are prohibited, there are no official reporting requirements for individuals or businesses related to their holdings or transactions. Any individual or business found engaging in such activities would be in violation of the BCB regulations, rather than facing specific tax reporting obligations for these assets. None exists. Bolivia has not introduced any specific tax legislation for cryptocurrencies. The current legal framework is one of prohibition. Relevance: The BCB is the institution that issued the foundational resolution prohibiting cryptocurrencies. While finding the exact PDF of Resolution N° 044/2014 directly on their main page might require navigating their archives, its existence and effect are widely acknowledged in official communiqués and financial news. The official communiqués reiterating the ban are often available under their "Comunicados" or "Prensa" sections.
travel rule Not Adopted. The FATF Travel Rule (Recommendation 16, interpreted for virtual assets under Recommendation 15) has not been adopted or implemented in Bolivia. Reason: Bolivia's central bank, the Banco Central de Bolivia (BCB), issued Resolution 042/2014 on May 6, 2014, which explicitly prohibits the use of "any type of currency not issued and regulated by the state, such as Bitcoin, for financial transactions and investments." This effectively bans the operation of virtual assets and, by extension, virtual asset service providers (VASPs) within Bolivia's formal financial system. Effective Date: N/A, as it has not been adopted. Bolivia has reversed its total ban on VASPs and is transitioning to a controlled regulatory framework, but no specific Travel Rule threshold amounts have yet been established by Bolivian authorities. Bolivia lifted its cryptocurrency prohibition in 2024 and established a regulatory framework that allows for legally recognized and regulated VASPs to operate. Exchanges between virtual assets and fiat currencies. Exchanges between one or more forms of virtual assets. Transfer of virtual assets.

Sources

This report is AI-generated from publicly available regulatory sources. Last updated: 2026-09-21. View full profile