Cabo Verde Compliance Report

Generated 2026-09-22

Comprehensive Framework

Regulatory Overview

Regulatory Status: Dedicated crypto/VA legislation, licensing regime, active enforcement
Key Regulator(s): Central Bank of Cabo Verde, United Nations Security Council
Primary Legislation: Law No. 01/2007 of 20 March 2007 on the Fight Against Money Laundering and Financing of Terrorism, Decree-Law No. 25/2014 of 30 July 2014 regulating the activity of banks and othe, Absence of dedicated crypto regulation leaves a regulatory gap, increasing compl, Cape Verde lacks explicit cryptocurrency regulation as of August 2026, creating, Decree Law 79/2020, Law No. 69/X/2025
Travel Rule: Adopted — Threshold: Implemented

Key Facts

aml Law No. 10/VIII/2011, of 23 May: This is the foundational law on the Prevention and Combat of Money Laundering, Financing of Terrorism and Proliferation of Weapons of Mass Destruction. It establishes the general framework for AML/CFT obligations, including customer due diligence, suspicious transaction reporting, and record-keeping. Decree-Law No. 4/2015, of 19 January: This decree-law approves the Regulation for the Implementation of Law No. 10/VIII/2011, providing more detailed guidance on how the AML/CFT obligations are to be met. Circulars and Regulations from the Central Bank of Cabo Verde (Banco de Cabo Verde - BCV): The BCV issues specific instructions and guidelines to financial institutions under its supervision to ensure compliance with the AML/CFT framework. While there might not be explicit crypto-specific circulars yet, general AML/CFT circulars apply, and the BCV would interpret their scope to include relevant virtual asset activities. Individuals: Obtain and verify identity using reliable, independent source documents, data, or information (e.g., full name, date of birth, nationality, physical address, unique identification number like a passport or national ID). Legal Persons/Entities: Obtain and verify legal name, legal form, proof of existence, powers that regulate and bind the entity, and names of individuals holding senior management positions. Identify and verify the ultimate beneficial owner (UBO) – typically any natural person holding 25% or more of the shares or voting rights, or otherwise exercising control. Understanding Purpose and Nature of Business Relationship: Obtain information on the purpose and intended nature of the business relationship or occasional transaction. Ongoing Monitoring: Continuously monitor the business relationship and transactions to ensure they are consistent with the VASP's knowledge of the customer, their business, and risk profile. This includes reviewing customer records and updating information as needed. Risk-Based Approach: Apply CDD measures on a risk-sensitive basis:
custody No specific "crypto custody license" currently exists. However, any entity providing services that involve holding or managing financial assets, even digital ones, could potentially be deemed to be operating within the scope of existing financial services laws and regulations. This might necessitate obtaining a general financial services license or authorization from the Banco de Cabo Verde (BCV) if their activities are interpreted to fall under the definition of banking, investment services, or payment services. Entities offering services involving fiat currency exchange or payment processing related to digital assets in Cape Verde are subject to a dedicated legal framework that classifies crypto-assets under existing financial categories including 'payment tokens,' rather than merely falling under general payment services regulations by likelihood. Segregation of Client Assets Rules: While there are no specific crypto-custody segregation rules, the general principles of financial prudency and client protection applicable to traditional financial institutions in Cabo Verde would likely require segregation of client funds/assets from the operational capital of the service provider. This is a fundamental principle to prevent misuse of client assets and protect them in case of insolvency. References would be found in the general banking and financial system laws and prudential regulations issued by the BCV. No specific insurance or bonding requirements for crypto custody. General financial institutions in Cabo Verde are subject to capital adequacy requirements set by the BCV to ensure their financial stability. These requirements are not specific to digital assets but are designed to provide a buffer against financial risks.
enforcement Primary Regulator: The Banco de Cabo Verde (BCV) is the central bank and the main authority responsible for overseeing financial institutions and monetary policy. It is also the most likely body to address issues related to virtual assets and cryptocurrencies from a financial stability and consumer protection perspective. Regulator: Banco de Cabo Verde (BCV) Entity Targeted: General public, financial institutions. Violation Type: Prevention of illegal financial activities, consumer protection against risks associated with unregulated virtual assets, general warnings against the use of cryptocurrencies due to their volatility, lack of regulation, and potential for fraud/money laundering. Penalty Amount: Not applicable, as these are warnings, not specific enforcement actions against an entity. Date: Multiple instances, typically over the past few years. A significant warning was issued in late 2021/early 2022 and reiterated since. Outcome: Increased public awareness, deterring regulated financial institutions from dealing directly with unregulated crypto assets. The BCV has consistently advised caution. For general regulatory updates and warnings, one would typically refer to the official publications section of the BCV website. However, specific enforcement case details are not usually published there for general warnings. A common approach from central banks in developing economies is to issue warnings via local press. For example, local news outlets often report on BCV warnings: Example of a local news report referencing a BCV warning: While not a direct BCV press release, a source like this indicates ongoing vigilance: https://expresso.sapo.pt/economia/2021-12-07-Banco-de-Cabo-Verde-alerta-para-os-riscos-das-criptomoedas-e-aconselha-cuidado- (Dated Dec 7, 2021, Portuguese) - This report indicates BCV's warning about risks.
general Partial/Cautionary Ban with AML/CFT Oversight: Cabo Verde does not recognize cryptocurrencies as legal tender and has issued strong warnings against their use and the operation of unregulated virtual asset services. There is no comprehensive regulatory framework specifically for virtual assets, but existing Anti-Money Laundering (AML) and Counter-Financing of Terrorism (CFT) legislation is expected to apply to any financial activity involving virtual assets that falls within its scope. Role: The central bank is the primary regulator for monetary policy, financial stability, and supervision of the banking sector. It has taken the lead in issuing warnings and clarifying the non-legal tender status of cryptocurrencies. URL: Banco de Cabo Verde Role: Responsible for receiving, analyzing, and disseminating suspicious transaction reports (STRs) related to money laundering and terrorist financing. Any virtual asset activity that falls under AML/CFT scrutiny would involve the UIF. Role: While not directly focused on financial virtual assets, ARME regulates various economic sectors, including telecommunications and competition. If virtual asset services touch upon these areas (e.g., related to online platforms, consumer protection in a broader sense), ARME might have an indirect role. Name: Comunicado N.º 01/2018 – Alerta sobre moedas virtuais ou criptomoedas (Communiqué No. 01/2018 – Alert on virtual currencies or cryptocurrencies) Date: Issued around March 2018 (specific date may vary slightly depending on publication). Key Provisions: This communiqué explicitly states that cryptocurrencies are not legal tender in Cabo Verde. It warns the public about the high risks associated with them (volatility, lack of regulation, potential for fraud, absence of consumer protection, money laundering risks), and clarifies that the BCV does not supervise or license entities dealing with virtual assets. It advises against their use for payments or investment.
licensing The Banco de Cabo Verde (BCV), the central bank, has repeatedly issued public warnings regarding the risks associated with cryptocurrencies. It has clarified that cryptocurrencies are not legal tender in Cabo Verde. The BCV has stated it does not authorize, supervise, or license entities that deal exclusively with virtual assets, but it has actively issued public warnings and interventions (e.g., regarding OPTCOIN), indicating some regulatory oversight through public communications and evolving legal frameworks for digital currency. The Central Bank of Cabo Verde is the primary regulatory authority, and its official website is the main source for its stance, though formal documentation (e.g., sanctions compliance overview) now exists rather than policies being communicated solely via transient press releases. Banco de Cabo Verde Official Website: https://www.bcv.cv/ There are no specific laws or regulations that define a licensing framework for crypto exchanges, custody providers, or payment processors as distinct categories of financial institutions. Unlike jurisdictions with bespoke crypto licenses (e.g., Malta, Gibraltar, UAE), Cabo Verde has not established such a system. Neither a specific licensing nor a dedicated registration regime for Virtual Asset Service Providers (VASPs) exists in Cabo Verde.
securities Regulatory Bodies: The Bolsa de Valores de Cabo Verde (BVC) is supervised by the Central Bank of Cabo Verde (BCV) and the Autoridade de Gestão do Mercado de Valores Mobiliários (AGMVM). Central Bank of Cabo Verde, Autoridade de Gestão do Mercado de Valores Mobiliários Primary Legislation: Established by Law No. 51/V/98, dated May 11, 1998, which created the BVC as a public limited liability company. Law n.º 51/V/98 International Standing: The exchange is a member of regional bodies like the African Securities Exchanges Association (ASEA) and the West African Capital Markets Integration Council (WACMIC). ASEA Membership, WACMIC Membership Supervision: The Cape Verde Stock Exchange operates under the supervision of the Central Bank of Cabo Verde and the Capital Market Supervision Agency. InvestingBrokers - Regulatory Oversight Listed Companies: The Bolsa de Valores de Cabo Verde lists several companies, including Banco Comercial Atlântico, SABCA; Caixa Económica de Cabo Verde, SACAIXA; ENACOLENA; and Sociedade Cabo-verdiana de Tabacos, SASCT. MansaMarkets - Listed Companies Cookie Usage: The website uses cookies to store and/or access device information, which is strictly necessary for legitimate interest purposes such as allowing the use of a specific service explicitly requested by the subscriber or user. Edubourse Cookie Policy Central Bank of Cabo Verde (BCV) – responsible for monetary policy and oversight of banking activities. Autoridade de Gestão do Mercado de Valores Mobiliários (AGMVM) – manages securities markets and ensures compliance with financial regulations. Central Bank of Cabo Verde, Autoridade de Gestão do Mercado de Valores Mobiliários
stablecoin No Explicit Classification: There is no specific law classifying stablecoins as e-money, payment tokens, or securities. Potential E-money Classification by Analogy: If a stablecoin is pegged to the Cabo Verde Escudo (CVE) or another fiat currency, is issued against receipt of funds, and is accepted as a means of payment by parties other than the issuer, it could potentially be categorized as "electronic money" under existing legislation. Legal Reference: Lei n.º 137/VIII/2015, de 31 de Dezembro (Regime Jurídico das Instituições de Moeda Electrónica) – This law establishes the legal framework for Electronic Money Institutions (EMIs). The BCV has a new organic law (Nova Lei Orgânica do BCV) as of February 2026 that updates its regulatory framework for digital currency, meaning the general legal framework page may not reflect the latest legislation. Potential Payment Service: Operations involving stablecoins as a means of transfer might also fall under the scope of general payment service provider regulations. Legal Reference: Lei n.º 9/IX/2018, de 25 de Maio (Lei dos Serviços de Pagamento) – This law governs payment services. URL (Official Journal of Cabo Verde / BCV): This law is also a foundational piece of payment regulation. If classified as E-money: Institutions issuing e-money under Lei n.º 137/VIII/2015 are subject to strict reserve requirements. They must safeguard funds received in exchange for electronic money by holding them in a separate account in a credit institution or investing them in secure, low-risk assets.
status Central Bank of Cape Verde (Banco Central de Cabo Verde) – responsible for monetary policy and oversight of banking and financial institutions. Website: https://www.bancocentral.cv National Supervisory Authority for Financial Services (Autoridade Reguladora dos Serviços Financeiros, ARSF) – oversees compliance with financial regulations, including AML/CFT. Website: https://www.arfs.gov.cv Law No. 01/2007 of 20 March 2007 on the Fight Against Money Laundering and Financing of Terrorism – incorporates FATF recommendations. Section 2 outlines obligations for reporting suspicious transactions. Decree-Law No. 25/2014 of 30 July 2014 regulating the activity of banks and other financial institutions – includes provisions relevant to digital asset service providers under broader financial services definitions. Cape Verde is listed as compliant with FATF recommendations in its 2025 Mutual Evaluation Report, indicating adherence to international AML/CFT standards. Source: Cape Verde Country Summary Any entity offering services related to digital assets (e.g., exchanges, wallets, payment processors) would fall under the purview of financial institutions regulated by Banco Central de Cabo Verde and ARSF. Providing custodial or exchange services for cryptocurrencies; facilitating fiat-to-crypto transactions; offering stablecoin services linked to fiat currency in Cape Verde. No specific capital thresholds are set for crypto-specific licenses in current legislation. However, general banking license requirements (e.g., minimum equity capital) typically range from €5 million to €10 million, depending on the scale of operations. Conversion: €5 million ≈ $5.7 million USD (as of 2025 exchange rates).
travel rule Foundational Law: The legal framework for virtual assets (VAs) and Virtual Asset Service Providers (VASPs) in Cabo Verde was established by Decree-Law No. 5/2020 of January 27, 2020. This law defines VAs and VASPs, brings them under the supervision of the Banco de Cabo Verde (BCV), and subjects them to anti-money laundering and combating the financing of terrorism (AML/CFT) obligations. URL (Decree-Law No. 5/2020): https://www.bcv.cv/pt/Legislacao/Documents/DL%20n%C2%BA%205_2020_27Jan.pdf (Portuguese) Travel Rule Implementation: The specific requirements for the FATF Travel Rule, including the collection and transmission of originator and beneficiary information, are detailed in Instruction No. 3/2021 of January 28, 2021, of the Banco de Cabo Verde. This instruction operationalizes the AML/CFT obligations for VASPs, including those related to the Travel Rule. URL (Instruction No. 3/2021): https://www.bcv.cv/pt/Legislacao/Documents/Instru%C3%A7%C3%A3o%20n%C2%BA%203_2021.pdf (Portuguese) Effective Date: The Travel Rule provisions came into effect with Instruction No. 3/2021 on January 28, 2021. Zero Threshold for Custodial Transfers: For transfers between VASPs (or from a VASP to a non-custodial wallet when initiated by a VASP customer), the full Travel Rule information is generally required for all transactions, regardless of amount. Threshold for Specific Data Points: While information is required for all transfers, certain detailed information requirements (e.g., full address of the originator/beneficiary) may have a threshold. Based on standard FATF implementation, this typically aligns with the EUR 1,000 (or equivalent) threshold. For transactions below this amount, VASPs might be allowed to collect less granular information, provided they can still identify the originator and beneficiary and reconstruct the transaction. However, the core obligation to obtain some identifying information remains for all transfers. Exchanges between virtual assets and fiat currencies.

Sources

This report is AI-generated from publicly available regulatory sources. Last updated: 2026-09-22. View full profile