Guam

## Report: Retail Cryptocurrency Trading Status in Guam

**Date:** April 12, 2025

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**Topic: Retail_Trading_Status**

**Description:** Assessment of the legal permissibility for individual citizens and residents in Guam to buy, sell, and hold cryptocurrencies, including the regulatory environment surrounding this activity (e.g., KYC/AML requirements imposed on platforms, general warnings issued).

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**1. Current Status:** `Allowed-Regulated`

**2. Detailed Narrative Explanation:**

Retail trading of cryptocurrencies (buying, selling, holding) by individuals is permitted in Guam, but it operates within the regulatory framework of the United States due to Guam's status as a U.S. territory. While Guam itself has not enacted specific, comprehensive legislation dedicated solely to cryptocurrency regulation [2, 3], existing U.S. federal laws and regulations apply and are enforced.

*   **Federal Oversight:** Key U.S. federal agencies oversee different aspects of cryptocurrency activities, and their jurisdiction extends to Guam:
    *   **FinCEN (Financial Crimes Enforcement Network):** Entities facilitating cryptocurrency exchange or transmission (like exchanges or brokers operating in Guam) are generally considered Money Services Businesses (MSBs) under the Bank Secrecy Act (BSA). They are required to register with FinCEN, implement Anti-Money Laundering (AML) and Know Your Customer (KYC) programs, maintain transaction records, and report suspicious activities [4, 9]. Enforcement actions confirm this applicability; in January 2024, a Guam-based cryptocurrency broker was sentenced for operating an unlicensed money transmitting business, specifically cited for failing to register with FinCEN and comply with federal regulations [5, 6, 15].
    *   **SEC (Securities and Exchange Commission):** If a specific cryptocurrency or crypto-related product qualifies as a "security" under U.S. law, its offer and sale fall under SEC jurisdiction. This involves registration and disclosure requirements. While the SEC hasn't approved spot Bitcoin ETFs listed on national exchanges until recently [17], its general oversight applies to any crypto asset deemed a security, impacting offerings and platforms accessible to Guam residents [8, 18].
    *   **IRS (Internal Revenue Service):** For federal tax purposes, the IRS treats cryptocurrencies as property, not currency. This means transactions involving crypto (selling, exchanging, or using it to pay for goods/services) are generally taxable events, requiring reporting of capital gains or losses [19, 20]. Guam operates under a "mirror code" tax system, meaning its income tax laws generally mirror the U.S. Internal Revenue Code [25]. Therefore, Guam residents are subject to these federal tax principles for their local income tax filings with the Guam Department of Revenue and Taxation (DRT) [13, 21, 23]. Anecdotal reports suggest tax enforcement regarding crypto gains occurs on the island [13].

*   **Absence of Specific Local Law:** Despite calls for model state frameworks by organizations like the Conference of State Bank Supervisors (CSBS) [2], Guam has not implemented its own specific licensing or regulatory regime for virtual currency businesses beyond the applicable federal requirements [3]. This lack of local legislation leads some sources to describe the status as "controversial" [2], not because it's illegal, but because the regulation relies entirely on the application of broader federal frameworks rather than territory-specific rules.

*   **Market Access:** Individuals in Guam can access cryptocurrency markets. Several international cryptocurrency exchanges and platforms explicitly state that they offer services to residents of Guam [10, 12, 14, 7].

*   **Official Warnings:** Federal authorities, including the U.S. Attorney for the Districts of Guam and the Northern Mariana Islands, have issued warnings regarding the use of cryptocurrencies in illicit activities like fraud and money laundering, emphasizing that these assets do not guarantee anonymity and that unlicensed financial activities will be targeted [5, 6, 15].

In summary, while Guam lacks its own bespoke crypto regulations, retail trading is allowed but is subject to significant U.S. federal oversight concerning AML/KYC (FinCEN), potential securities regulation (SEC), and taxation (IRS/Guam DRT).

**3. Relevant Text Excerpts:**

*   **On Lack of Specific Guam Regulation:**
    *   "Despite the orientation given by the CSBS, Guam has not enacted regulations or legislation specifically regulating digital currency yet." [2] - *Source: Freeman Law*
    *   "Guam. None." (Referring to specific cryptocurrency legislation passed in 2022) [3] - *Source: National Conference of State Legislatures (NCSL)*

*   **On Applicability of FinCEN Rules & Enforcement:**
    *   "Operating as a cryptocurrency exchanger and engaged in the business of transmitting funds on behalf of others to third parties for a fee, he failed to register with FinCEN and failed to comply with federal regulations governing money transmitters." (Regarding the Weymouth case in Guam) [5] - *Source: U.S. Department of Justice*
    *   "According to FinCEN guidelines, P2P exchanges are money service businesses (MSBs). Therefore, they must comply with the Bank Secrecy Act (BSA)... The act requires P2P exchanges to help combat misuse by implementing customer due diligence systems, maintaining records of cryptocurrency transactions, and reporting suspicious activities..." [4] - *Source: AlphaPoint (summarizing FinCEN requirements)*

*   **On Taxation:**
    *   "You may have to report transactions with digital assets such as cryptocurrency and non fungible tokens (NFTs) on your tax return. Income from digital assets is taxable." [19] - *Source: Internal Revenue Service (IRS)*
    *   "Guam doesn't really do tax enforcement... Update on this: I just recently spoke to my friend... he told me his GFs cousin actually did get busted by RevTax and the IRS, here on Guam. He was some rich boy... that ended up using said funds towards gambling crypto. Dude made huge profits... Waddya know they caught into him and seized his assets." [13] - *Source: Reddit (r/guam user discussion, anecdotal)*
    *   Guam's tax system is based on the U.S. Internal Revenue Code: "Section 935, U. S. Internal Revenue Code; Title 11, Guam Code Annotated – Finance & Taxation." [25] - *Source: Guam Department of Revenue and Taxation*

*   **On Market Accessibility:**
    *   "Bitget is legally accessible in Guam. You can buy Bitcoin in Guam through Bitget." [14] - *Source: Bitget Guide*
    *   "Kraken Pay services are available in these territories: Guam, Puerto Rico, and the U.S. Virgin Islands." [7] - *Source: Kraken Support*
    *   Lists various cryptocurrencies available for trading in Guam. [12] - *Source: SpectroCoin*

*   **On Official Warnings:**
    *   “Cryptocurrencies are often used to facilitate fraudulent activity... Our office will continue to target unlicensed money transmitting, money laundering, and any other unlawful transactions associated with cryptocurrency.” [5] - *Source: U.S. Attorney Shawn N. Anderson, quoted by U.S. Department of Justice*

**4. Source URLs:**

*   [2] Freeman Law - Guam and Cryptocurrency: `https://freemanlaw.com/guam-cryptocurrency-laws/` (Link adjusted based on search result context, actual URL might differ slightly but points to the firm's crypto law section)
*   [3] National Conference of State Legislatures (NCSL) - Cryptocurrency 2022 Legislation: `https://www.ncsl.org/financial-services/cryptocurrency-2022-legislation`
*   [4] AlphaPoint - How P2P Crypto Exchanges Can Ensure Regulatory Compliance: `https://alphapoint.com/blog/how-p2p-crypto-exchanges-can-ensure-regulatory-compliance/`
*   [5] U.S. Department of Justice - Guam Cryptocurrency Broker Sentenced: `https://www.justice.gov/usao-gu/pr/guam-cryptocurrency-broker-sentenced-30-months-federal-prison-55-million-bitcoin`
*   [6] Pacific Island Times - Federal authorities crack down on cryptocurrency fraud on Guam: `https://www.pacificislandtimes.com/post/federal-authorities-crack-down-on-cryptocurrency-fraud-on-guam`
*   [7] Kraken Support - Where is Kraken licensed or regulated?: `https://support.kraken.com/hc/en-us/articles/360001368823-Where-is-Kraken-licensed-or-regulated-`
*   [8] Congress.gov - Digital Assets and SEC Regulation: `https://crsreports.congress.gov/product/pdf/IF/IF11825` (CRS Report IF11825)
*   [9] Manatt, Phelps & Phillips, LLP - FinCEN Provides Guidance On Cryptocurrency: `https://www.manatt.com/insights/newsletters/financial-services-law/fincen-provides-guidance-on-cryptocurrency`
*   [10] Bitget Guide - How to buy Bitcoin(BTC) in Guam: `https://www.bitget.com/en/buy-btc-in-gu`
*   [12] SpectroCoin - Bitcoin in Guam: `https://spectrocoin.com/en/bitcoin-price/guam-usd.html`
*   [13] Reddit - r/guam - Crypto on Guam in 2023?: `https://www.reddit.com/r/guam/comments/175j1f9/crypto_on_guam_in_2023/` (Note: Reddit is user-generated content, used here for anecdotal context)
*   [14] Bitget Guide - Where & how to buy Bitcoin (BTC) in Guam: `https://www.bitget.com/en/buy/btc-in-gu`
*   [15] U.S. Secret Service - Guam Cryptocurrency Broker Sentenced: `https://www.secretservice.gov/newsroom/releases/2024/01/guam-cryptocurrency-broker-sentenced-30-months-federal-prison-55`
*   [17] Congress.gov - SEC Approves Bitcoin Exchange-Traded Products (ETPs): `https://crsreports.congress.gov/product/pdf/IN/IN12291` (CRS Report IN12291)
*   [18] SEC.gov - Crypto Assets: `https://www.sec.gov/crypto`
*   [19] IRS.gov - Digital assets: `https://www.irs.gov/businesses/small-businesses-self-employed/digital-assets`
*   [20] Deloitte US - Taxation of Digital Assets: `https://www2.deloitte.com/us/en/pages/tax/articles/taxation-of-digital-assets.html`
*   [21] MyGuamTax.com (Guam DRT Portal): `https://www.myguamtax.com/`
*   [23] Reddit - r/guam - Anybody here on Guam have crypto?: `https://www.reddit.com/r/guam/comments/n7wz3b/anybody_here_on_guam_have_crypto/` (Note: Reddit is user-generated content)
*   [25] Guam Department of Revenue and Taxation - Guam Tax Laws & Regulations: `https://www.guamtax.com/about/laws.html`