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Lesotho 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 Lesotho Capital Market Regulations, Central Bank of Lesotho's
Primary Legislation
Act No. 3 of 2012, Lesotho has never enacted a Securities Act, 2010, and licenses no trading platfo, Act 4 of 2008, Lesotho's financial sector is governed by the Financial Institutions Act, the Ce, No primary legislation, official gazette notice, or regulatory directive specifi, The Central Bank of Lesotho has not published any guidance, circular, or directi, Lesotho's general business registration requirements under the Companies Act app, The Financial Institutions Act in Lesotho covers traditional banks and financial, The Income Tax Act of Lesotho provides no specific provisions for digital assets, Lesotho has no dedicated cryptocurrency law, creating a complete legal vacuum fo, Lesotho's lack of FATF-aligned virtual asset regulation creates international co
Travel Rule
Not adopted
Tax Reporting
Revenue Services Lesotho has issued no guidance on cryptocurrency mining, and no crypto item appears in its legal-notices or publications indexes. Under the Income Tax Order 1993 the gross income of a resident taxpayer includes income from all geographical sources (s. 17(2)), a receipt in the form of property, services or another benefit is taken into account at its fair market value on the date it is taken into account for tax purposes (s. 65(1)), and chargeable income is calculated in maloti (s. 66(1)).. Revenue Services Lesotho has published no crypto-asset tax guidance and no Lesotho instrument classifies staking or lending rewards. Property income under s. 20 of the Income Tax Order 1993 covers dividends, interest, natural resource payments, rent, royalties and gains on the disposal of investment assets, and s. 65(1) takes a receipt in the form of property or services into account at its fair market value.. Lesotho's revenue authority is Revenue Services Lesotho, the successor to the Lesotho Revenue Authority, and Lesotho does not need a 'badges of trade' enquiry to tax crypto disposals: s. 59(1) of the Income Tax Order 1993 takes the gain or loss on the disposal of a business asset or an investment asset into account in determining chargeable income, whatever the frequency of trading, while business income under s. 19 covers the profits or gains arising from a business.. Cryptocurrency received as payment for goods or services in Lesotho falls to be taken into account at its fair market value under s. 65(1) of the Income Tax Order 1993, with chargeable income calculated in maloti under s. 66(1) and a resident taxed on income from all geographical sources under s. 17(2); Revenue Services Lesotho has published no crypto-asset tax guidance on crypto valuation or receipts.. Lesotho operates PAYE on employment income of resident individuals at 20% on the first M69,120 of chargeable income and 30% on the excess, with a personal tax credit of M10,824 a year or M902 a month, and s. 65(1) of the Income Tax Order 1993 takes a receipt in the form of property, services or another benefit into account at fair market value; no Revenue Services Lesotho instrument addresses payment of wages in cryptocurrency.

Key Facts

  • aml The Money Laundering and Proceeds of Crime Act, 2008 (Act No. 4 of 2008) is Lesotho's foundational AML statute, but virtual asset service providers are not accountable institutions under its Schedule 1: the most recent Schedule amendment, Legal Notice No. 69 of 2024 published 25 June 2024 under section 112 of that Act, inserts only a person conducting safekeeping and administration of cash or liquid securities, and no virtual-asset category has ever been added. Lesotho has no Financial Intelligence Act 2011: the Financial Intelligence Unit is established by section 14 of the Money Laundering and Proceeds of Crime Act, 2008 as a juristic person responsible to the Minister, suspicious transaction reporting arises under section 18 of that Act and the tipping-off prohibition under section 24(1). For Individuals: Obtaining and verifying name, residential address, date of birth, nationality, and a unique identification number (e.g., national ID, passport). Verification should be done using reliable, independent source documents or data. For Legal Entities: Obtaining and verifying company name, legal form, proof of incorporation/registration, address of principal place of business, directors' names, and beneficial ownership information. Understanding the Nature of Business/Purpose of Relationship: VASPs must understand the nature and purpose of the business relationship or occasional transaction. Ongoing Monitoring: Continuously monitoring the business relationship, including scrutiny of transactions undertaken throughout the course of the relationship, to ensure that the transactions are consistent with the VASP's knowledge of the customer, their business, and risk profile, including, where necessary, the source of funds. Source of Funds/Wealth: Given the inherent risks of virtual assets, VASPs are expected to obtain information on the source of funds or source of wealth, especially for large transactions or high-risk customers. Enhanced Due Diligence (EDD): Required for high-risk situations, which typically include:
  • banking Central Bank of Lesotho (CBL) – Responsible for managing foreign exchange reserves, administering exchange controls, and regulating financial institutions. Website: https://www.cbl.ls Credit Reporting Act 2012 – Enables the establishment of a credit bureau by the CBL. Data Protection Act 2012 – Governs data protection frameworks, indirectly relevant to digital asset handling. No specific law directly addresses cryptocurrencies. Financial institutions intending to engage in cryptocurrency-related activities (e.g., exchanges, wallets) would likely fall under the purview of banking licenses issued by the CBL. None specifically outlined for cryptocurrencies; however, traditional financial services licensing may apply. No explicit capital thresholds for crypto-specific licenses are stated in Lesotho’s legislation. Generally, commercial banks must maintain sufficient capital to meet regulatory requirements set by the CBL, but specifics for digital asset firms are absent. The CBL does not currently provide a streamlined process for cryptocurrency licensing. Applications would likely follow standard banking license procedures, requiring substantial documentation and financial scrutiny. Entities must comply with general banking regulations, including maintaining adequate risk management frameworks, AML/CFT policies, and governance structures as per existing bank licenses.
  • cross border Regulatory Bodies: The Government of Lesotho oversees various digital initiatives through its ministries and departments, but no dedicated financial regulatory authority specifically governs cryptocurrencies. Primary Laws: No specific legislation in Lesotho directly addresses virtual assets or blockchain technology. Existing financial regulations primarily concern traditional banking and monetary operations. International Standing: Lesotho is a member of the Financial Action Task Force (FATF) and adheres to its recommendations, which indirectly impact crypto regulation by urging adherence to AML/KYC standards applicable to all financial activities. Who Needs a License: No specific entity is mandated to obtain a license for crypto-related activities under current Lesotho law. Activities Requiring Licensing: None identified for cryptocurrencies or blockchain services. Capital Requirements: Not applicable, as no licensing framework exists. Application Process & Timeline: No established process for crypto-related licensing; any hypothetical application would be subject to future regulatory development. Structural Requirements: Not defined due to the absence of specific crypto regulations.
  • custody Lesotho operates no cryptocurrency custody licence and no virtual-asset licensing regime of any kind: the Central Bank of Lesotho legislation index lists no virtual-asset instrument, the Bank's press statement of 20 May 2024 places cryptocurrencies outside its regulatory perimeter, and the ESAAMLG mutual evaluation adopted in September 2023 rated Recommendation 15 Non-Compliant. The Financial Institutions Act 2012, Act No. 3 of 2012, requires a licence from the Commissioner for banking or credit business under sections 5 and 6 and makes no reference to virtual assets, crypto-assets, digital assets or electronic money; Lesotho therefore provides no licensing category for a digital-asset custodian and holding client crypto assets triggers no authorisation duty. The Financial Institutions Act 2012, Act No. 3 of 2012, published in the Lesotho Government Gazette on 27 February 2012, is the general licensing framework for financial institutions in Lesotho and requires a licence from the Commissioner for banking or credit business under sections 5 and 6; the Act carries no crypto-asset or virtual-asset provision. [No direct government PDF link easily accessible, but often referenced by CBL] Refer to the Central Bank of Lesotho website for general legal frameworks: https://www.cbl.org.ls/legal-frameworks/ Segregation of Client Assets Rules: Lesotho imposes no client-asset segregation duty on digital-asset custodians: no virtual-asset statute exists, the Financial Institutions Act 2012 sets no safekeeping or client-asset rule, and Legal Notice No. 69 of 2024 extended the AML Schedule only to a person conducting safekeeping and administration of cash or liquid securities, an entry that reaches neither crypto-assets nor custodians of them. In traditional finance, the Financial Institutions Act 2012 and prudential guidelines issued by the CBL would dictate segregation for licensed entities. However, these do not extend to unregulated digital asset custodians. General fiduciary duties under common law might apply to any entity holding assets on behalf of others, but without specific statutory backing for digital assets.
  • enforcement Role: The primary financial regulator responsible for monetary policy, financial stability, and the supervision of banks and financial institutions. The Central Bank of Lesotho has issued two public statements on cryptocurrency, on 9 November 2017 and on 20 May 2024; the 20 May 2024 statement warns that cryptocurrencies fall outside the regulatory purview of the Central Bank of Lesotho and that there is no recourse to the Bank in the event of losses, and that offering cryptocurrencies as investment opportunities exposes promoters to sections 27 and 28 of the Capital Market Regulations 2014, which require investment advisers to be licensed by the Bank. No Lesotho authority has taken a published crypto enforcement action against any named entity: the Central Bank of Lesotho's crypto output consists of the general public warnings of 9 November 2017 and 20 May 2024, and no fine, sanction, revocation or prosecution concerning virtual assets has been published by the Bank, the Financial Intelligence Unit or the Director of Public Prosecutions. Source (General Stance/Warnings): While specific enforcement actions against entities are not public, the CBL's position can be inferred from various financial stability reports and public pronouncements, although direct press releases on specific crypto enforcement are not readily available. General indication of their cautious approach: African Financial & Economic Data (AFED) Portal sometimes aggregates statements, and local news (though scarce on crypto enforcement specifically) would echo official warnings. However, a direct, public-facing URL for a specific CBL warning post-2021 related to enforcement against an entity is not found. The general stance predates and continues post-2021. Role: The national agency responsible for receiving, analyzing, and disseminating suspicious transaction reports (STRs) and other financial information to combat money laundering, terrorist financing, and other financial crimes. Stance on Crypto: The FIU would be involved in monitoring for illicit financial activities involving cryptocurrencies as part of its broader anti-money laundering and combating the financing of terrorism (AML/CFT) mandate. Enforcement Actions: The FIU's actions are typically confidential and involve investigations rather than public enforcement actions with penalties against specific crypto entities, unless they lead to criminal prosecutions by law enforcement, which are also not publicly reported as "crypto enforcement actions" by a financial regulator in Lesotho.
  • licensing Lesotho has enacted no virtual-asset statute and operates no virtual-asset service provider licence or registration: the Central Bank of Lesotho's legislation index carries no virtual-asset, crypto-asset or digital-asset instrument, and the September 2023 ESAAMLG mutual evaluation records that Lesotho 'does not have a legal and institutional framework to allow VAs and VASPs activities to be carried out'. The Central Bank of Lesotho's published position on cryptocurrency consists of two warnings, issued 9 November 2017 and 20 May 2024; the 2024 statement places cryptocurrencies outside the Bank's regulatory perimeter rather than prohibiting them, and Lesotho has never operated a regulatory sandbox or any crypto authorisation pathway. Lesotho's Money Laundering and Proceeds of Crime Act 2008 (Act 4 of 2008) binds only the accountable institutions listed in its Schedule 1, and the most recent amendment - Legal Notice No. 69 of 2024, gazetted Tuesday 25 June 2024 under section 112 - inserts a single new entry, 'person conducting safekeeping and administration of cash or liquid securities activities on behalf of other persons', so virtual-asset service providers are not accountable institutions in Lesotho and carry no AML/CFT obligation. Cryptocurrency Exchanges: There are no specific licenses required for a "cryptocurrency exchange" if it deals only with virtual assets. However, if the exchange offers services that involve fiat currency conversion, holds fiat currency for customers, or facilitates remittances in traditional currency, it could potentially be deemed to be conducting activities that fall under existing banking, money transmission, or payment services regulations, which would require a license from the CBL. This is a grey area and depends heavily on the specific nature and integration with traditional financial systems. Custody Providers: Similarly, there are no specific licenses for "virtual asset custody providers." If the custody provider also provides traditional financial services (e.g., managing fiat bank accounts, lending fiat against crypto), then existing financial services licenses might be required. Payment Processors: If a payment processor exclusively handles virtual asset payments without any conversion to or from fiat currency in Lesotho, there isn't a specific license. However, if it facilitates payments that involve fiat currency or traditional money transmission services, it would likely require a Payment Services Provider (PSP) license or similar authorization from the CBL. Lesotho prescribes no minimum capital for virtual-asset service providers, because no VASP licence exists to attach capital to; minimum cash capital is imposed only on institutions licensed under the Financial Institutions Act 2012 (Act No. 3 of 2012), whose section 9 requires an applicant to fulfil the minimum cash capital set in the Second Schedule, with section 22 requiring that capital be maintained unimpaired. Lesotho is a member of the Eastern and Southern Africa Anti-Money Laundering Group, and its second-round mutual evaluation - on-site 21 November to 2 December 2022, adopted September 2023 - rates Lesotho Non-Compliant on FATF Recommendation 15 on new technologies; the FATF standards bind Lesotho only politically through ESAAMLG and have not been transposed into any domestic virtual-asset obligation.
  • marketing Lesotho Telecommunications Authority (LTA): Regulates telecommunications, indirectly affecting digital asset transaction infrastructure. Lesotho Electricity and Water Authority (LEWA): Oversees energy sectors that support digital infrastructure. Companies Act of 2011: Primary legislation for business registration and operational compliance across sectors including potential digital assets. Companies Act No. 21 of 2011 (Government Gazette, Vol. 123, No. 45, 2011): Governs company registration and operations, applicable to entities handling crypto assets. Trading Enterprises Order, 1993 and Regulations, 1999: Define licensing requirements for various business activities, including those that may involve digital asset transactions. License Requirement: No specific license is required exclusively for marketing digital assets or cryptocurrencies in Lesotho. Activities Requiring Licensing: General business licensing under the Companies Act applies, while trading enterprises may need additional permits as per the Trading Enterprises Order and Regulations. Capital Requirements: Not applicable to crypto marketing; general business registration fees apply.
  • ongoing Lesotho Bank of Lesotho (BOL) – Central authority overseeing monetary policy, financial stability, and payment systems in Lesotho. Lesotho is a member of the Financial Action Task Force (FATF) and adheres to its 10 recommendations for combating money laundering and terrorism financing. While specific reference to cryptocurrencies is evolving globally, BOL aligns with FATF expectations through existing AML/KYC mandates applicable to digital asset service providers. Cryptocurrency exchanges and trading services Digital wallet providers facilitating inbound/outbound crypto transactions Payment processors accepting cryptocurrencies for goods/services Surety Bond: Minimum bond amount set by BOL, typically starting from a standard threshold (exact figure not specified in public documents; approximated as USD 5,000 based on general PSP licensing fees). Net Worth Requirement: Entities must maintain adequate capital to cover potential liabilities, generally aligned with BOL’s risk-based approach. Pre-Application Preparation – Compile audited financial statements, draft AML/KYC policies, and appoint a local compliance representative.
  • sanctions Financial Intelligence Unit (FIU), Lesotho: Responsible for implementing anti-money laundering (AML) and counter-terrorism financing (CTF) regulations. Website: https://www.gov.ls/ Ministry of Finance, Lesotho: Oversees economic policies and financial regulatory frameworks. Financial Intelligence Act, 2014 (Act No. 9 of 2014): Mandates the establishment of FIU and outlines AML/CTF obligations for reporting entities. Economic Crimes Act, 2006 (Act No. 14 of 2006): Provides a legal framework for combating economic crimes, including sanctions related to illicit financial flows. Lesotho is a member of the Financial Action Task Force (FATF) and adheres to its standards through the implementation of AML/CTF measures under the Financial Intelligence Act. However, specific crypto-related directives are absent. No specific license is required for cryptocurrency exchanges or wallet providers under current Lesotho legislation. None explicitly mentioned for digital assets; only financial institutions and money service businesses (MSBs) fall under general AML/CTF licensing obligations. Not applicable to crypto-specific entities due to the lack of targeted regulations.
  • sandbox Banking Authority of Lesotho (BAL): Responsible for licensing and supervising banks, non-bank financial institutions, and payment service providers. Website: https://www.gov.ls/ Department of Communications: Oversees telecommunications infrastructure and internet services. Website: https://www.gov.ls/ Lesotho Revenue Authority (LRA): Manages tax collection, including indirect taxes that may affect digital asset transactions. Banking Act (Act No. 12 of 1971): Governs banking activities, indirectly affecting cryptocurrency services through electronic payment provisions. Financial Intelligence Unit (FIU) Act (Act No. 10 of 2015): Establishes the Financial Intelligence Unit to combat money laundering and terrorist financing, applicable to crypto-related transactions. Electronic Communications and Transactions Act (ECTA) (No. 12 of 2016): Provides a legal framework for electronic communications, potentially impacting digital asset platforms. Customer Due Diligence (CDD): Mandatory identification and verification of customers before engagement in transactions. Enhanced Due Diligence (EDD): Required for higher-risk clients, including those involved in large or frequent crypto transfers.
  • securities Lesotho does not have a comprehensive, dedicated legal framework specifically governing cryptocurrency or digital asset securities as of 2025–2026; no specific legislation addressing virtual assets has been identified in official sources Lesotho - United States Department of State No licensing regime specifically for cryptocurrency exchanges, digital asset custodians, or virtual asset service providers (VASPs) has been established in Lesotho; no entities have been licensed to conduct cryptocurrency-related activities Lesotho - United States Department of State While Lesotho is open to foreign direct investment, the absence of investment policies and the lack of specific crypto regulations make it difficult for digital asset businesses to operate with clarity Lesotho - United States Department of State The Central Bank of Lesotho (CBL) is the primary financial regulator and regulates financial services under the Financial Institutions Act of 2012; however, this Act does not specifically address cryptocurrency or digital asset securities Lesotho - Transparency of the Regulatory System | Privacy Shield The Business Licensing and Registration Act 2019 (BLRA 2019) governs business licensing in Lesotho and requires foreign investors to renew business identification cards annually, while locals renew every three years; this Act applies to all businesses including any potential crypto-related enterprises Lesotho - United States Department of State The Mines and Minerals Act No.4 of 2005 and the Mines and Mineral (Amendment) Act 2022 regulate mining activities, which is relevant to cryptocurrency mining operations; diamond mining is subject to large-scale licensing with no foreign ownership restrictions, but the GOKL reserves the right to acquire at least 20-35 percent ownership in any large-scale mine Lesotho - United States Department of State Lesotho follows World Trade Organization (WTO) laws and regulations, but local laws differ from WTO's definitions of local and foreign investors Lesotho - United States Department of State The regulatory framework for utilities and the financial sector is considered modern, but mining regulation and the industrial and trading licensing system require improvements, which affects the broader environment for digital asset businesses Lesotho - Transparency of the Regulatory System | Privacy Shield
  • stablecoin E-money/Payment Tokens: This is the most likely classification for fiat-pegged stablecoins intended primarily for payments. Lesotho has no National Payment System Act 2020: payment systems are governed by the Payment Systems Act 2014 (Act No. 11 of 2014, gazetted 12 September 2014) and the Payment Systems (Issuers of Electronic Payment Instruments) Regulations 2017 (Legal Notice No. 30 of 2017, gazetted 31 March 2017), neither of which mentions virtual assets, cryptocurrency or stablecoins, and Lesotho imposes no stablecoin redemption right, reserve-attestation duty or issuer authorisation. Definition: Under such regulations, electronic money typically refers to electronically stored monetary value represented by a claim on the issuer, issued on receipt of funds for the purpose of making payment transactions, and accepted by a natural or legal person other than the electronic money issuer. A fiat-pegged stablecoin could fit this description if issued by a regulated entity. The Central Bank of Lesotho's legislation index lists no National Payment System Act 2020 and no stablecoin, virtual-asset or crypto instrument of any kind; the operative payments statute is the Payment Systems Act 2014, and the separate monetary fact is that Lesotho issues its own currency, the loti, pegged at par to the rand inside the Common Monetary Area, which is a currency arrangement and not a stablecoin rule. Securities: Less likely for typical fiat-pegged stablecoins, but possible for stablecoins that promise a return, represent an ownership stake, or have complex structures akin to investment contracts. Lesotho has enacted no securities statute: securities and capital-market activity are regulated by the Central Bank of Lesotho under the Capital Market Regulations 2014, amended by the Central Bank (Capital Markets) (Amendment) Regulations 2023 and 2024, and no Lesotho instrument classifies a stablecoin as a security or as any other regulated financial product. Definition: If a stablecoin meets the definition of a "security" (e.g., share, debenture, unit in a collective investment scheme), it would fall under capital markets regulation, which is currently nascent in Lesotho. Lesotho's anti-money-laundering law contains no virtual-asset category: the Money Laundering and Proceeds of Crime Act 2008 defines no virtual asset and imposes no obligation on virtual-asset service providers, the most recent Schedule amendment (Legal Notice No. 69 of 2024, gazetted 25 June 2024 under s. 112) added only safekeeping and administration of cash or liquid securities, and ESAAMLG rated Lesotho Non-Compliant on Recommendation 15 in September 2023.
  • status No entity has been granted a cryptocurrency or digital asset license in Lesotho, as no licensing regime exists. Lesotho | United States Trade Representative Lesotho's broader financial oversight mechanisms show notable gaps, including off-budget accounts not subject to audit and weak supreme audit institution independence, which compounds uncertainty for digital asset businesses. Lesotho - United States Department of State Lesotho's financial sector is governed by the Financial Institutions Act, the Central Bank of Lesotho Act, and the Money Laundering and Proceeds of Crime Act, none of which contains specific provisions for cryptocurrency or digital asset service providers as of 2025–2026. Lesotho - United States Department of State No primary legislation, official gazette notice, or regulatory directive specifically addressing virtual assets, digital currencies, or cryptocurrency exchanges has been published by Lesotho authorities during the review period. Lesotho - United States Department of State Lesotho is a member of the Southern Africa Customs Union (SACU) and participates in regional trade agreements, but SACU's framework does not include digital asset regulation provisions. Lesotho | United States Trade Representative Lesotho's international standing includes eligibility for the African Growth and Opportunity Act (AGOA), which focuses on trade preferences and does not address cryptocurrency regulation. Lesotho | United States Trade Representative Lesotho's fiscal management framework, including budget transparency and audit practices, is reviewed annually by the U.S. Department of State, but this review does not extend to digital asset oversight. Lesotho - United States Department of State The supreme audit institution in Lesotho does not meet international standards of independence, which affects overall financial governance but has no specific digital asset application. Lesotho - United States Department of State
  • tax Revenue Services Lesotho has issued no guidance on cryptocurrency mining, and no crypto item appears in its legal-notices or publications indexes. Under the Income Tax Order 1993 the gross income of a resident taxpayer includes income from all geographical sources (s. 17(2)), a receipt in the form of property, services or another benefit is taken into account at its fair market value on the date it is taken into account for tax purposes (s. 65(1)), and chargeable income is calculated in maloti (s. 66(1)). Revenue Services Lesotho has published no crypto-asset tax guidance and no Lesotho instrument classifies staking or lending rewards. Property income under s. 20 of the Income Tax Order 1993 covers dividends, interest, natural resource payments, rent, royalties and gains on the disposal of investment assets, and s. 65(1) takes a receipt in the form of property or services into account at its fair market value. Lesotho's revenue authority is Revenue Services Lesotho, the successor to the Lesotho Revenue Authority, and Lesotho does not need a 'badges of trade' enquiry to tax crypto disposals: s. 59(1) of the Income Tax Order 1993 takes the gain or loss on the disposal of a business asset or an investment asset into account in determining chargeable income, whatever the frequency of trading, while business income under s. 19 covers the profits or gains arising from a business. Cryptocurrency received as payment for goods or services in Lesotho falls to be taken into account at its fair market value under s. 65(1) of the Income Tax Order 1993, with chargeable income calculated in maloti under s. 66(1) and a resident taxed on income from all geographical sources under s. 17(2); Revenue Services Lesotho has published no crypto-asset tax guidance on crypto valuation or receipts. Lesotho operates PAYE on employment income of resident individuals at 20% on the first M69,120 of chargeable income and 30% on the excess, with a personal tax credit of M10,824 a year or M902 a month, and s. 65(1) of the Income Tax Order 1993 takes a receipt in the form of property, services or another benefit into account at fair market value; no Revenue Services Lesotho instrument addresses payment of wages in cryptocurrency. Lesotho taxes resident individuals at two rates and has no zero-rate band: Revenue Services Lesotho charges 20% on the first M69,120 of chargeable income and 30% on the excess, and a personal tax credit of M10,824 a year (M902 a month) is set against the tax payable; non-residents are charged at a standard rate of 25%. Lesotho has no 0% income band up to M108,000: the first M69,120 of a resident individual's chargeable income is taxed at 20%, and relief is given instead through a personal tax credit of M10,824 a year set against the tax payable. Lesotho's 20% rate applies to the first M69,120 of a resident individual's chargeable income, not to income above M108,000, and chargeable income above M69,120 is taxed at 30%.
  • travel rule No crypto-specific legislation identified as of June 2024 No VASP licensing regime exists No travel-rule (FATF Recommendation 16) implementation No tax guidance for digital assets issued Financial Institutions Act, 2012: Governs the licensing and supervision of financial institutions in Lesotho, including banks, insurers, and other financial service providers. The Act's definitions of "financial institution" and "financial services" do not extend to virtual asset service providers or cryptocurrency exchange activities. The CBL issued the Financial Institutions Regulations 2013 under this Act, which similarly contain no digital asset provisions. Central Bank of Lesotho: Primary financial regulator with supervisory authority over financial institutions under the CBL Act and Financial Institutions Act. As of June 2024, the CBL has published no circulars, guidance notes, consultation papers, or public statements specifically addressing virtual assets, digital currencies, or FATF Recommendation 16 implementation. Financial Intelligence Unit (FIU): Established under the Money Laundering and Proceeds of Crime Act, 2008. The FIU is the designated authority for receiving suspicious transaction reports (STRs). No public guidance from the FIU addresses virtual asset reporting obligations. Lesotho Revenue Authority (LRA): Administering the Income Tax Act and VAT Act. As of June 2024, the LRA has issued no guidance, practice notes, or public rulings on taxation of digital assets or cryptocurrency transactions.

Sources

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