Guatemala

Okay, here is the comprehensive report on the current status of retail cryptocurrency trading in Guatemala.
## Report on Retail Cryptocurrency Trading Status in Guatemala

**Topic:** Retail_Trading_Status
**Description:** Assess whether individual citizens and residents in the country are legally permitted to buy, sell, and hold cryptocurrencies. Detail the regulatory environment surrounding this activity (e.g., KYC/AML requirements imposed on platforms, general warnings issued).
**Date of Report:** April 12, 2025

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

**2. Detailed Narrative Explanation:**

Retail trading of cryptocurrencies (buying, selling, holding by individuals) is currently **allowed but operates in an unregulated environment** in Guatemala. There is no specific legislation that explicitly prohibits or formally permits and regulates cryptocurrency activities for individuals or businesses.

*   **Legal Standing:** Guatemalan law, specifically the principle derived from Article 5 of the Constitution, permits activities not expressly prohibited by law. Since no law bans cryptocurrency ownership or trading, individuals are free to engage in these activities at their own risk.
*   **Official Position of Authorities:**
    *   **Banco de Guatemala (Banguat - Central Bank):** Banguat has consistently stated that cryptocurrencies like Bitcoin are *not* legal tender in Guatemala. The only official currency is the Quetzal, and only Banguat can issue currency. Cryptocurrencies are not considered divisas (foreign currency), are not backed by the state, and cannot be legally enforced as a means of payment for goods and services. Banguat views cryptocurrencies primarily as speculative investment assets, not money, and has warned the public about their volatility, lack of backing, and potential use in illicit activities like money laundering and fraud. The central bank has also stated that crypto-assets are "outside the radar" of its functions but is participating in studies regarding Central Bank Digital Currencies (CBDCs), though no active development is underway in Guatemala.
    *   **Superintendencia de Bancos (SIB - Superintendence of Banks):** The SIB has explicitly communicated that platforms or individuals engaged solely in the sale and commercialization of virtual currencies are *not* under its supervision or inspection. It warns that these platforms may lack adequate security standards and risk mitigation processes, potentially exposing users to significant risks, especially since many operate from international jurisdictions outside Guatemalan legal oversight. While the SIB doesn't regulate crypto exchanges directly, financial institutions under its supervision (like banks) that might interact with crypto-related transactions (e.g., fiat on/off ramps) are expected to apply standard risk management, AML/CFT (Anti-Money Laundering/Combating the Financing of Terrorism) procedures.
*   **Regulatory Framework:** Guatemala lacks a specific legal or regulatory framework dedicated to cryptocurrencies or Virtual Asset Service Providers (VASPs). There are no specific licensing requirements, consumer protection rules, or market conduct regulations tailored to crypto trading platforms operating within or serving Guatemala. While general laws, particularly those concerning AML/CFT, could theoretically apply, their specific application and enforcement concerning crypto activities remain unclear due to the absence of targeted regulations. There are discussions about potential future regulations, possibly focusing on digital payments and e-wallets, but no concrete crypto-specific legislation has been enacted.
*   **Market Practice:** Retail trading occurs, often through international exchanges, P2P platforms, or local fintech initiatives that may offer crypto services alongside other digital payment solutions. Some businesses accept crypto, and crypto ATMs exist, primarily for converting crypto to Quetzales. However, adoption faces challenges due to regulatory uncertainty, volatility concerns, limited digital literacy, and security risks. Users engage with cryptocurrencies entirely at their own risk, without specific regulatory protections.

In summary, Guatemalan individuals can legally buy, sell, and hold cryptocurrencies, but they do so in an environment lacking specific regulation, supervision, or state backing for these assets. Official bodies warn of the risks involved.

**3. Relevant Excerpts from Sources:**

*   **On Legality and Lack of Regulation:**
    *   "Si bien en Guatemala no está regulado explícitamente el uso y comercio de criptomonedas, tampoco está prohibido. En consecuencia, nada impide que personas y empresas compren, vendan o intercambien criptomonedas." (Translation: "While the use and trade of cryptocurrencies are not explicitly regulated in Guatemala, neither is it prohibited. Consequently, nothing prevents individuals and companies from buying, selling, or exchanging cryptocurrencies.") - *Source: Prensa Libre (November 26, 2024)*
    *   "In Guatemala, there are no legislative or regulatory provisions which specifically govern virtual currencies. However, virtual currencies are not expressly prohibited, which implies that they can exist and be used under private law." - *Source: Mondaq (Undated, accessed April 2025)*
    *   "La respuesta corta es que se trata de una cuestión que no cuenta con regulación específica." (Translation: "The short answer is that it is a matter that does not have specific regulation.") - *Source: Fundación Libertad y Desarrollo (January 31, 2022)*
*   **On Official Stance (Banguat & SIB):**
    *   "...de conformidad con la Ley Monetaria, la unidad monetaria de Guatemala es el Quetzal y únicamente el Banco de Guatemala puede emitir billetes y monedas dentro del territorio de la República, por lo que las monedas virtuales no son monedas de curso legal en el país. Asimismo, las monedas virtuales no son respaldadas por el Estado de Guatemala, no se consideran divisas, no están garantizadas, ni se puede obligar a ser aceptadas como medio de pago en transacciones de bienes y servicios." (Translation: "...in accordance with the Monetary Law, the monetary unit of Guatemala is the Quetzal and only the Bank of Guatemala can issue bills and coins within the territory of the Republic, therefore virtual currencies are not legal tender in the country. Likewise, virtual currencies are not backed by the State of Guatemala, are not considered foreign currency, are not guaranteed, nor can they be forced to be accepted as a means of payment in transactions of goods and services.") - *Source: Superintendencia de Bancos (SIB) Communiqué, cited by Prensa Libre (February 19, 2021) and SIB Website*
    *   "Adicionalmente, las plataformas transaccionales o personas que se dedican a la venta y comercialización de monedas virtuales en Guatemala, no se encuentran bajo la vigilancia e inspección de la Superintendencia de Bancos..." (Translation: "Additionally, transactional platforms or individuals dedicated to the sale and commercialization of virtual currencies in Guatemala are not under the surveillance and inspection of the Superintendence of Banks...") - *Source: Superintendencia de Bancos (SIB) Communiqué, cited by SIB Website*
    *   "Las criptomonedas no son dinero. Básicamente son activos de inversión. Entonces, están fuera del radar de las funciones del Banco de Guatemala." (Translation: "Cryptocurrencies are not money. Basically, they are investment assets. Therefore, they are outside the radar of the functions of the Bank of Guatemala.") - *Statement by Álvaro González Ricci, President of Banguat, cited by CriptoNoticias (January 22, 2025)*
*   **On Risks and User Responsibility:**
    *   "En Guatemala, es cada persona individual o jurídica que decida invertir en este tipo de transacciones la que queda como responsable de sus propias acciones." (Translation: "In Guatemala, each individual or legal entity that decides to invest in this type of transaction is responsible for their own actions.") - *Source: Prensa Libre (November 26, 2024)*
    *   "...al no existir un marco legal específico, los bancos locales no ofrecen servicios como custodia de criptomonedas o cuentas de ahorro en activos digitales. Ante esta situación, los usuarios interesados recurren a plataformas internacionales, lo cual aumenta el riesgo de estafas y fraudes." (Translation: "...since there is no specific legal framework, local banks do not offer services such as cryptocurrency custody or savings accounts in digital assets. Faced with this situation, interested users resort to international platforms, which increases the risk of scams and fraud.") - *Source: Prensa Libre (November 26, 2024)*

**4. Source URLs:**

*   **Superintendencia de Bancos (SIB) - Official Communiqué:** (While the direct link to the specific 2021 communique might change, the SIB's stance is generally found on their official site or press sections) Main site: `https://www.sib.gob.gt/` (Specific communique link may need searching within the site's press releases or public notices section). A direct link to a PDF version found via search: `https://www.sib.gob.gt/c/document_library/get_file?uuid=8f4a1f5e-3170-4d8b-85f3-796a4f1b0e4e&groupId=18`
*   **Prensa Libre - Article on Crypto Status (Nov 2024):** `https://www.prensalibre.com/economia/criptomonedas-no-estan-prohibidas-ni-autorizadas-esta-en-riesgo-el-usuario/`
*   **CriptoNoticias - Article on Banguat President's Statements (Jan 2025):** `https://www.criptonoticias.com/regulacion/banco-central-guatemala-criptomonedas-no-son-medio-legal-pago-pais/`
*   **Fundación Libertad y Desarrollo - Legal Status Analysis (Jan 2022):** `https://libertadydesarrollo.org/actualidad/cual-es-el-estatus-legal-de-las-criptomonedas-en-guatemala/`
*   **Mondaq - Legal Guide on Virtual Currencies:** `https://www.mondaq.com/guatemala/fin-tech/1170370/virtual-currencies-comparative-guide`
*   **Library of Congress - Regulation Summary (Citing Banguat President 2017):** `https://www.loc.gov/law/help/cryptocurrency/world-survey.php#guatemala` (Scroll to Guatemala section)
*   **Banco de Guatemala (Banguat) - Main Site:** `https://www.banguat.gob.gt/` (Official statements might be found in press releases or publications sections). Presentation slides confirming stance: `https://www.competitividad.gt/wp-content/uploads/2021/08/Marco-Regulatorio-de-las-Criptomonedas-en-Guatemala-BG-28jul2021.pdf`

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**Disclaimer:** This report is based on publicly available information up to April 12, 2025. The regulatory landscape can change rapidly.