Liberia

**Financial Regulatory Analyst Report: Retail Cryptocurrency Trading Status in Liberia**

**Date:** April 12, 2025

**Topic:** Retail_Trading_Status (Cryptocurrency)

**Description:** This section assesses the legal and regulatory environment for individual citizens and residents in Liberia concerning the buying, selling, and holding of cryptocurrencies. It details relevant regulations, official stances, and practical realities, including any Know Your Customer (KYC) or Anti-Money Laundering (AML) requirements pertinent to this activity.

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**1. Current Status:** **Allowed-UnRegulated**

**2. Detailed Narrative Explanation:**

The status of retail cryptocurrency trading in Liberia is best described as **Allowed-UnRegulated**. While there are no specific laws explicitly prohibiting individual citizens from buying, selling, or holding cryptocurrencies, the regulatory environment is characterized by a lack of dedicated crypto-asset regulations, coupled with cautionary warnings and specific enforcement actions from the Central Bank of Liberia (CBL).

*   **Lack of Specific Ban or Regulation:** There is currently no comprehensive legal framework in Liberia specifically designed to regulate cryptocurrencies or Virtual Asset Service Providers (VASPs). No law explicitly bans the ownership or trading of cryptocurrencies by individuals [5, 6]. This absence of a specific prohibition means individuals are generally permitted to engage with crypto assets.
*   **Central Bank Warnings and Actions:** The CBL has expressed significant caution regarding cryptocurrencies. In May 2021, the CBL issued a public notice directing a local entity, 'The Abundance Community Coin (TACC)', to cease operations and halt the planned launch of its digital asset [11, 13, 14]. The CBL stated that TACC was not licensed to conduct financial business under the New Financial Institutions Act and viewed its attempt to introduce a digital product without regulatory adherence as "illegal" and potentially undermining the financial system [13, 14]. This action led some observers, like the IMF in late 2022, to classify Liberia's stance as an "implicit ban," stemming from the CBL directing a local crypto startup to cease operations [3]. The CBL has also generally warned the public about the risks associated with cryptocurrencies and discouraged their use [4, 5].
*   **Taxation Framework:** Despite the lack of specific financial regulations for crypto trading, the Liberian Revenue Authority (LRA) appears to recognize crypto assets for tax purposes. Sources suggest the LRA classifies cryptocurrencies as intangible assets, with gains subject to capital gains tax and income from mining treated as business income [16]. Furthermore, a Tax Amendment Act from December 2024 includes provisions empowering the Minister (presumably of Finance) to establish procedures for implementing the OECD's Crypto-Asset Reporting Framework (CARF) through regulation, facilitating international tax information exchange regarding crypto assets, effective from January 1, 2025 [12]. This indicates a level of official acknowledgement and an intent to integrate crypto-asset reporting into the tax system, implicitly recognizing their existence and transactional nature.
*   **Practical Access and Use:** Despite CBL warnings, international cryptocurrency exchanges appear accessible to Liberian residents, offering services for buying, selling, and trading various digital assets [5, 7]. Payment methods reportedly include bank transfers and mobile money services prevalent in Liberia [5]. Peer-to-peer (P2P) platforms also seem operational, facilitating exchanges like Bitcoin to cash [9].
*   **Regulatory Development and AML/KYC:** As of mid-2022, Liberia acknowledged the potential Money Laundering/Terrorist Financing (ML/TF) risks associated with Virtual Assets (VAs) and VASPs. The CBL had initiated studies to understand the sector and associated risks, with plans to establish an appropriate regulatory framework subsequently [15]. However, a specific, comprehensive crypto regulatory framework, including licensing requirements and tailored AML/CFT obligations for VASPs (beyond general financial institution rules), does not appear to be in place yet. While international exchanges accessible in Liberia likely apply their own KYC/AML procedures [7, 9], there are no specific Liberian regulations mandating these for crypto platforms operating within or servicing the country, beyond the general provisions of the Financial Institutions Act which the CBL invoked against TACC [13].
*   **CBDC Exploration:** Liberia is exploring the possibility of a Central Bank Digital Currency (CBDC), potentially in partnership with technology providers like Gluwa [4]. This indicates an interest in leveraging digital financial technology within a controlled environment, separate from the decentralized cryptocurrency space.

In summary, while the CBL maintains a cautious and discouraging stance, evidenced by past enforcement against an unlicensed local entity and general warnings, there is no explicit legal ban preventing individuals from engaging with cryptocurrencies via (primarily international) platforms. The lack of specific crypto regulations means the activity is largely unregulated from a dedicated financial oversight perspective, although recent tax law developments indicate increasing official recognition and integration into reporting frameworks. Therefore, "Allowed-UnRegulated" best captures the current situation.

**3. Relevant Text Excerpts:**

*   **On the "Implicit Ban" Interpretation (IMF, 2022):** "Zimbabwe has ordered all banks to stop processing transactions and Liberia directed a local crypto startup to cease operations (implicit bans)." [3]
*   **On the Lack of Specific Ban but CBL Warnings (Carlos Maiz Blog, 2025):** "Liberia does not have a fully established regulatory framework for cryptocurrencies, but the Central Bank of Liberia (CBL) has issued warnings about the risks associated with investing in digital currencies. Despite this, there are no specific laws that ban cryptocurrency usage in the country." [5]
*   **On CBL Action Against TACC (CBL Public Notice, 2021):** "The CBL views the attempt by TACC to introduce a digital financial product in Liberia without adherence to the required regulation as not only illegal, but also intended to undermine the country's financial system. In view of the foregoing, TACC is hereby warned and directed to immediately halt all publicity on the launch of the product and desist from carrying out any financial activity." [13]
*   **On Lack of Specific Regulation (InfrasoftTech, Undated):** "Liberia. Undecided. No legal status for cryptocurrencies; There is no cryptocurrency regulation." [6]
*   **On Tax Classification (Heavnn University Blog, 2024):** "The LRA classifies cryptocurrencies as intangible assets for tax purposes. This means that they are not considered legal tender or currency but rather as a type of property... Gains or losses from the sale or exchange of cryptocurrencies are subject to capital gains tax." [16]
*   **On Tax Reporting Framework (Tax Amendment Act, Dec 2024):** "(3) Pursuant to international treaties and conventions in tax matters, the Minister may, by regulation, require and provide procedures for collection of information for the implementation of the Crypto-Asset Reporting Framework..." [12]
*   **On Regulatory Study (FATF/GIABA Report, 2022):** "Liberia recognised the potential ML/TF risks from VAs and VASPs and had taken initial steps to study and understand the sector and the associated risk. As at the time of on-site meetings, the CBL has conducted a survey on ML risks relating to VAs and VASPs... and plans to establish appropriate regulatory framework after a better understanding of the sector." [15]

**4. Source URLs:**

*   [3] IMF (Nov 2022): https://www.imf.org/en/Blogs/Articles/2022/11/22/africas-growing-crypto-market-needs-better-regulations (Note: Link provided via search results leads to the article page)
*   [4] UPay Blog (Dec 2024): https://upay.co.uk/blog/crypto-adoption-around-the-world-liberia (Note: Link provided via search results leads to the blog post)
*   [5] Carlos Maiz Blog (Jan 2025): https://carlosmaiz.com/en/how-to-buy-cryptocurrencies-in-liberia/ (Note: Link provided via search results leads to the blog post)
*   [6] InfrasoftTech (Undated): https://www.infrasofttech.com/cryptocurrency-regulation-tracker/ (Note: Link provided via search results leads to the tracker page)
*   [7] Cointelegraph (Undated): https://cointelegraph.com/learn/best-crypto-exchanges-in-liberia (Note: Link provided via search results leads to the article)
*   [9] Bestchange (Undated): https://www.bestchange.com/bitcoin-to-cash-usd-in-monrovia.html (Note: Link provided via search results leads to the exchange listing page)
*   [11] BitcoinKE (May 2021): https://bitcoinke.io/2021/05/cbl-warns-against-local-cryptocurrency/ (Note: Link provided via search results leads to the article)
*   [12] Liberia Tax Amendment Act (Dec 2024): https://lra.gov.lr/images/Laws/Tax_Amendment_Act_of_December_2024_Amending_the_Liberia_Consolidated_Revenue_Code.pdf (Note: Direct PDF link inferred from search result content, actual URL might differ slightly but points to the LRA website for laws)
*   [13] Central Bank of Liberia Public Notice (May 2021): https://www.cbl.org.lr/content/public-notice-abundance-community-coin-tacc (Note: Link provided via search results leads to the notice page)
*   [14] FrontPageAfrica (May 2021): https://frontpageafricaonline.com/business/liberia-central-bank-of-liberia-warns-against-crypto-currency-says-it-has-not-issued-any-license-for-such-transaction/ (Note: Link provided via search results leads to the article)
*   [15] FATF/GIABA Mutual Evaluation Report (Aug 2022, Adopted June 2023): https://www.giaba.org/media/f/1518_MER%20-%20Liberia%20-%20Mutual%20Evaluation%20Report%20-%20August%202022.pdf (Note: Direct PDF link inferred from search result content, actual URL might differ slightly but points to GIABA website)
*   [16] Heavnn University Blog (Mar 2024): https://heavnn.university/blog/cryptocurrency-taxes-in-liberia/ (Note: Link provided via search results leads to the blog post)

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**End of Report Section**