Maldives Compliance Report

Generated 2026-09-22

Comprehensive Framework

Regulatory Overview

Regulatory Status: Dedicated crypto/VA legislation, licensing regime, active enforcement
Key Regulator(s): Maldives Monetary Authority
Primary Legislation: Prevention of Money Laundering and Financing of Terrorism Act (No. 10/2014): Thi, Law No. 10/2014, Anti-Money Laundering and Countering the Financing of Terrorism Act Maldives 2014, Law No. 6/2004
Travel Rule: Adopted — Threshold: ,
Tax Reporting: Individuals: The Maldives does not impose a general capital gains tax on individuals. Therefore, gains realized by individuals from the sale of cryptocurrencies would generally not be subject to capital gains tax.. Businesses: If an entity (company, partnership, sole proprietorship) is deemed to be engaged in the business of trading cryptocurrencies, the profits derived from such activities would likely be considered taxable income under the Business Profit Tax (BPT). In this scenario, it wouldn't be a separate "capital gains tax" but rather profits subject to BPT.. No Personal Income Tax: The Maldives does not have a personal income tax for individuals. As such, income earned by individuals through cryptocurrency activities (e.g., trading, mining for personal use) would generally not be subject to income tax, provided it is not considered a business activity.. Business Activity: If an individual's cryptocurrency activities are deemed to constitute a "business" (e.g., frequent, large-scale trading; professional mining operations; providing crypto-related services), the profits from such activities would fall under the Business Profit Tax (BPT).. Applicability: The Business Profit Tax (BPT) is levied on the profits of businesses conducted in the Maldives. If an entity (e.g., a company registered in the Maldives) engages in activities like cryptocurrency trading, mining, or offering crypto-related services (e.g., exchange services, wallet services), the profits generated from these activities would be subject to BPT.

Key Facts

aml No specific "custody license": The Maldives does not currently have a dedicated license type explicitly for "cryptocurrency custodian." VASP Registration/Licensing: However, entities providing custodial services for virtual assets would likely fall under the definition of a Virtual Asset Service Provider (VASP) as defined by the AML/CFT Act and subsequent regulations. VASPs are subject to AML/CFT obligations and may require registration or licensing with the MMA/FIU. The definition of a VASP, consistent with FATF standards, includes entities that conduct one or more of the following activities or operations for or on behalf of another natural or legal person: Exchange between virtual assets and fiat currencies. Exchange between one or more forms of virtual assets. Transfer of virtual assets. Safekeeping and/or administration of virtual assets or instruments enabling control over virtual assets. (This is where custody falls) Participation in and provision of financial services related to an issuer’s offer and/or sale of a virtual asset.
cross border Maldives Monetary Authority (MMA): Regulates financial institutions and oversees payment systems including Favara. National Payment System Act (NPSA): Governs the operation of payment systems like Favara but lacks explicit crypto provisions. Entities providing services related to virtual assets (e.g., exchanges, wallets) are not explicitly licensed by MMA but must comply with PMLA requirements. No specific license for cryptocurrency trading or wallet services exists; compliance is mandatory under existing financial regulations. Not applicable as no dedicated crypto licensing framework exists. No formal application process for crypto-related services; entities must ensure AML/CFT compliance through self-assessment and reporting. Entities must establish robust internal controls, KYC/AML procedures, and maintain records per PMLA guidelines. As of 2025–2026, no entities have been formally licensed for cryptocurrency-related activities in the Maldives.
enforcement Regulator Name: Maldives Monetary Authority (MMA) Entity Targeted: General Public / Unlicensed Operators (not specific named entities). Violation Type: While not a "violation" in the enforcement sense against an entity, the MMA's stance is that cryptocurrencies are not legal tender in the Maldives and that they do not license or regulate virtual asset service providers (VASPs). They primarily warn about the risks associated with investing in or using cryptocurrencies, including fraud, volatility, and lack of consumer protection. Penalty Amount: N/A (No fines or penalties have been levied against specific crypto entities by the MMA in this period). Date: Ongoing, with several public statements and advisories issued over the past few years. Outcome: The outcome of these advisories is to deter the use and proliferation of unregulated cryptocurrencies within the Maldives and to manage public expectations regarding their legality and safety. MMA's Consistent Position: The Maldives Monetary Authority has repeatedly stated that cryptocurrencies are not recognized as legal tender in the Maldives. They also do not provide licenses or regulatory oversight for any cryptocurrency-related activities or businesses operating within the country. Public Advisories: The MMA has issued warnings to the public about the inherent risks of cryptocurrencies, including price volatility, cybersecurity risks, potential for fraud, and the absence of consumer protection. These advisories are the primary "action" taken by the regulator concerning crypto. Focus on AML/CFT: While there isn't a specific crypto regulatory framework, the Maldives, as a member of the Asia/Pacific Group on Money Laundering (APG), is working to strengthen its Anti-Money Laundering and Counter-Terrorist Financing (AML/CFT) regime. This includes addressing virtual assets in line with FATF recommendations, but this is more about developing future regulations rather than current enforcement actions against existing crypto businesses. Lack of Licensed Entities: Since no crypto businesses are licensed by the MMA, there are no regulated entities for the MMA to "enforce" against in the traditional sense (e.g., for non-compliance with licensing conditions or specific crypto-related regulations). Any potential criminal activity involving crypto would fall under general criminal law enforcement by the police, rather than specific financial regulatory enforcement.
licensing Pure Crypto-to-Crypto: Currently, there is no specific license required from the MMA for a platform exclusively facilitating crypto-to-crypto trades. However, such entities would still be subject to general AML/CFT obligations if identified as VASPs under Maldivian law. Crypto-to-Fiat (or Fiat-to-Crypto): If an exchange involves the exchange of fiat currency (Maldivian Rufiyaa - MVR or other fiat currencies) for virtual assets, or vice-versa, it could potentially fall under existing financial services regulations, such as those for money services businesses or payment service providers. This would require an appropriate license from the MMA for those traditional activities. The scope of these existing licenses might need to be interpreted or expanded to explicitly cover VA activities. Custody Providers: Similar to exchanges, if a provider merely holds virtual assets (cold or hot storage) without engaging in other regulated financial activities (like fund management of traditional assets), there isn't a specific VA custody license. However, if the custody service is part of a broader financial service or if it involves managing client funds/assets that are then invested in traditional markets, existing licenses (e.g., for investment funds, trustees) might apply. Processing payments in MVR (or other fiat) for goods/services, with crypto merely as an underlying settlement layer: This would likely require a payment service provider license from the MMA under the existing payment systems framework. Processing payments solely in crypto: If a service exclusively processes payments in virtual assets without touching fiat currency in the Maldives, there isn't a specific license. Again, AML/CFT obligations would still apply. Capital Requirements: There are no specific capital requirements for VASPs as VASPs yet. However, if a business falls under an existing financial license (e.g., payment service provider, money service business), then the capital requirements for that specific license would apply. AML/KYC (Anti-Money Laundering / Know Your Customer): This is the most crucial requirement for any entity dealing with virtual assets in the Maldives, regardless of licensing. VASPs are expected to: Implement robust KYC procedures for all customers.
ongoing The CMDA operates under the Capital Markets Act (No. 08 of 2016), which governs conventional securities markets but does not explicitly address cryptocurrencies. No specific Maldivian legislation directly targets digital assets or cryptocurrencies as of 2025. No licensing framework exists for cryptocurrency exchanges or digital asset service providers in the Maldives as of 2025–2026. None specified for cryptocurrencies; traditional securities trading requires CMDA licensing. Not applicable for crypto activities due to lack of regulatory mandate. No application process or timeline is defined for cryptocurrency-related services under current regulations. As of 2025–2026, zero entities are licensed to operate as cryptocurrency exchanges or service providers in the Maldives. CDD (Customer Due Diligence): Not mandated for virtual asset transactions under existing law.
sanctions Prevention of Money Laundering and Financing of Terrorism Act (Act No. 10/2014) (PMLFTA): This is the foundational law that outlines the obligations for financial institutions and Designated Non-Financial Businesses and Professions (DNFBPs), which by extension, cover VASPs. It mandates customer due diligence (CDD), record-keeping, suspicious transaction reporting (STR), and compliance with international sanctions. Legal Reference: Prevention of Money Laundering and Financing of Terrorism Act (Act No. 10/2014) While an official English translation may be sought directly from the Attorney General's Office or the Maldives Monetary Authority, its content aligns with FATF standards. A reference to the Maldivian legal portal where it may be found: Attorney General's Office - Acts and Regulations (You may need to search for "Money Laundering" or "Terrorism Financing" there). Regulations, Directives, and Guidelines by the Maldives Monetary Authority (MMA): The MMA is the central bank and financial regulator, responsible for issuing specific regulations and guidelines for AML/CFT compliance, including those relevant to virtual assets. Legal Reference: Maldives Monetary Authority (MMA) website for publications and regulations: MMA - Regulations and Directives Financial Intelligence Unit (FIU): Housed within the MMA, the FIU is responsible for receiving and analyzing STRs/SARs and disseminating financial intelligence to law enforcement. Legal Reference: MMA - Financial Intelligence Unit
securities Cryptocurrency and digital asset securities are not explicitly legalized or prohibited under Maldivian law, but the securities regulatory framework applies to digital assets that qualify as securities under the Maldives Securities Act (Act no. 2/2006) Maldives Securities Act Consolidated English Translation. Licensing is available for securities market intermediaries including brokers, dealers, investment advisers, asset managers, custodians, credit rating agencies, stock exchanges, and central depositories through the CMDA Licensing Portal CMDA - Capital Market Development Authority. As of the latest available information, no crypto-specific or digital asset securities licenses have been publicly issued, and the regulatory framework for virtual assets remains undefined with no dedicated digital asset regime CMDA - Other Related Laws and Regulations. The practical reality is that while the securities law framework exists and is operational for traditional securities, digital asset securities regulation is nascent, with the 3rd Amendment to the Securities Act (ratified September 2024) establishing new guidelines for foreign investment in securities but containing no specific provisions for crypto assets President ratifies 3rd Amendment to Maldives Securities Act | The President's Office. The Capital Market Development Authority (CMDA) is the primary regulator, established as an independent institution under the Maldives Securities Act 2/2006 for developing and regulating the capital market in the Maldives CMDA - Capital Market Development Authority. The primary law governing securities is the Maldives Securities Act (Act no. 2/2006), which provides the statutory basis for CMDA's licensing powers over securities market intermediaries including brokers, dealers, investment advisers, asset managers, custodians, credit rating agencies, stock exchanges, and central depositories CMDA - Capital Market Development Authority. The Maldives Securities Act was originally enacted in 2006, with subsequent amendments including the first amendment CMDA - Maldives Securities Act 2/2006 - First Amendment and a second amendment ratified subsequently President Ratifies Second Amendment to the Maldives Securities Act | The President's Office. The third amendment assigns CMDA responsibility for establishing guidelines for foreign investments in securities and mandates the creation of a monitoring and compliance system to ensure securities transactions adhere to established guidelines President ratifies 3rd Amendment to Maldives Securities Act | The President's Office.
stablecoin No Specific Classification: There is no specific legal or regulatory classification of stablecoins as e-money, payment tokens, or securities under Maldivian law. E-money/Payment Tokens: If a stablecoin were to be used extensively for payments and pegged to the Maldivian Rufiyaa or another fiat currency, the MMA might attempt to bring it under existing or future Payment Systems Act regulations, similar to how traditional e-money is regulated. However, this would require specific interpretations or amendments. Reference: Maldives Payment Systems Act (Law No. 17/2016), which provides the framework for payment systems and e-money services. URL (MMA Laws & Regulations page): https://mma.gov.mv/laws-regulations/payment-systems-act/ Securities: Stablecoins that offer features akin to investments (e.g., yield-bearing stablecoins, those tied to complex baskets of assets) could potentially be viewed as securities under a broad interpretation of securities laws, though this is speculative without specific guidance. Virtual Assets: Most likely, stablecoins would fall under a broader definition of "virtual assets" if the Maldives were to adopt such a classification, often used in conjunction with FATF recommendations. None Specific: There are no specific reserve requirements for stablecoin issuers in the Maldives, as there is no specific regulatory framework for stablecoins. None Specific: There is no dedicated licensing regime for stablecoin issuers. Entities wishing to provide financial services related to digital assets would currently operate in an unregulated space regarding stablecoins specifically, or they might attempt to fit their operations within existing financial licenses if applicable (e.g., as a money service business or payment service provider, though stablecoins are not explicitly covered).
status The Maldives has not yet established a comprehensive regulatory framework specifically addressing cryptocurrencies and digital assets, leading to uncertainty for market participants. Existing financial regulations do not explicitly cover virtual currencies, creating potential gaps in compliance requirements such as AML/KYC. The Maldives Financial Services Authority (FSA) oversees financial institutions but has not issued specific guidelines for cryptocurrencies. No dedicated legislation or policy documents are currently in place to regulate the issuance, trading, or use of digital assets within the Maldives. There is no licensing requirement explicitly for cryptocurrency exchanges or wallet providers under current Maldivian law. Existing anti-money laundering (AML) and know your customer (KYC) obligations under the Maldivian Financial Intelligence Unit (FIU) may indirectly apply to cryptocurrency activities, but this is not clearly defined. No documented enforcement actions have been taken against entities involved in cryptocurrency activities within the Maldives due to the lack of specific regulatory oversight. The tax treatment of cryptocurrencies in the Maldives is unclear, with no explicit guidance from the Ministry of Finance on whether gains or income from virtual currencies are taxable.
tax Individuals: The Maldives does not impose a general capital gains tax on individuals. Therefore, gains realized by individuals from the sale of cryptocurrencies would generally not be subject to capital gains tax. Businesses: If an entity (company, partnership, sole proprietorship) is deemed to be engaged in the business of trading cryptocurrencies, the profits derived from such activities would likely be considered taxable income under the Business Profit Tax (BPT). In this scenario, it wouldn't be a separate "capital gains tax" but rather profits subject to BPT. No Personal Income Tax: The Maldives does not have a personal income tax for individuals. As such, income earned by individuals through cryptocurrency activities (e.g., trading, mining for personal use) would generally not be subject to income tax, provided it is not considered a business activity. Business Activity: If an individual's cryptocurrency activities are deemed to constitute a "business" (e.g., frequent, large-scale trading; professional mining operations; providing crypto-related services), the profits from such activities would fall under the Business Profit Tax (BPT). Applicability: The Business Profit Tax (BPT) is levied on the profits of businesses conducted in the Maldives. If an entity (e.g., a company registered in the Maldives) engages in activities like cryptocurrency trading, mining, or offering crypto-related services (e.g., exchange services, wallet services), the profits generated from these activities would be subject to BPT. Tax Rate: The standard Business Profit Tax rate is 15% on taxable profits exceeding MVR 500,000. Profits up to MVR 500,000 are exempt. Definition of "Business": The exact definition of what constitutes a "business" in the context of cryptocurrency activities is not explicitly outlined in Maldivian tax law. This would likely be determined based on factors such as frequency, volume, intent, and scale of operations, similar to how traditional business activities are assessed. Cryptocurrency as a "Good" or "Service": There is no specific guidance from the Maldives Inland Revenue Authority (MIRA) on whether cryptocurrency itself constitutes a "good" or "service" for GST purposes, or if it falls under an exempt category like financial services or currency.
travel rule Adopted: Yes, the Maldives has adopted the FATF Travel Rule through the Regulation on Virtual Asset Service Providers (VASPs) issued by the Maldives Monetary Authority (MMA). Effective Date: The VASP Regulation was approved by the MMA Board on 1st December 2022 and officially came into force on 1st January 2023. This regulation mandates VASPs to comply with AML/CFT obligations, including those related to the Travel Rule. The Travel Rule in the Maldives applies to transactions involving virtual assets that exceed a specific threshold. Threshold: Transactions equal to or greater than MVR 15,000 (Maldivian Rufiyaa) or its equivalent in USD 1,000. For transactions below this threshold, VASPs are still required to monitor for suspicious activities and report them to the Financial Intelligence Unit (FIU). Exchange between virtual assets and fiat currencies. Exchange 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