Samoa

**Report: Retail Cryptocurrency Trading Status in Samoa**

**Date:** April 12, 2025

**Prepared For:** Internal Regulatory Assessment Unit
**Prepared By:** Specialized Financial Regulatory Analyst

**Subject:** Comprehensive Analysis of the Regulatory Environment for Retail Cryptocurrency Trading in Samoa

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**Retail_Trading_Status: Samoa**

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

2.  **Detailed Narrative Explanation:**
    The status of retail cryptocurrency trading in Samoa is best described as **Allowed-Regulated**. While there are no specific laws explicitly banning individual citizens from buying, selling, or holding cryptocurrencies, the regulatory environment, primarily driven by the Central Bank of Samoa (CBS) and anti-money laundering legislation, imposes significant controls and expresses strong discouragement towards these activities.

    *   **Legal Standing and Central Bank Position:** The Central Bank of Samoa has repeatedly clarified that cryptocurrencies (such as Bitcoin, Onecoin, Ethereum, etc.) are *not* considered legal tender in Samoa. They are not issued or regulated by the CBS, meaning they lack the official backing and protections afforded to the national currency. The CBS consistently warns the public that investing in digital currencies is highly risky and speculative, emphasizing that individuals engage in such activities entirely at their own risk, with no guarantee of value retention or acceptance as a medium of exchange. The bank actively discourages investment in unregulated cryptocurrencies promoted within Samoa.
    *   **Regulatory Framework via AML Laws:** The cornerstone of regulation affecting cryptocurrency activities stems from the Money Laundering Prevention Act 2007, particularly its amendments passed in June 2018 (Money Laundering Prevention Amendment Act 2018). This amendment is critical because it defines any person or entity wishing to *promote* cryptocurrency or digital currency within Samoa as a "Financial Institution."
    *   **Requirements for Promoters/Exchanges:** Under this classification, any individual or company promoting cryptocurrencies (which would logically include exchanges facilitating retail trading) must:
        *   Obtain a valid business license issued in Samoa.
        *   Register with and adhere to the reporting requirements set forth by the Central Bank of Samoa for Financial Institutions. This includes stringent Anti-Money Laundering (AML) and Counter-Financing of Terrorism (CFT) obligations, overseen by the Samoa Financial Intelligence Unit (FIU), which is a department within the CBS.
        *   Failure to comply, including promoting without prior CBS approval or contravening the Act, can result in severe penalties, including imprisonment and/or fines.
    *   **Practical Implications for Retail Traders:** While an individual simply holding crypto might not be directly regulated, the act of acquiring, selling, or actively trading often involves interacting with promoters or platforms. These intermediaries *are* subject to regulation as Financial Institutions. This framework effectively regulates the ecosystem through which retail trading occurs. The CBS's strong warnings and the lack of legal tender status further shape the environment, making participation risky and lacking official support.
    *   **Enforcement and Warnings:** The CBS has actively engaged in public awareness campaigns to educate citizens about the dangers of cryptocurrency investments, particularly highlighting scams like OneCoin, which reportedly spread through community networks. The FIU collaborates with international partners (like the New Zealand FIU and AUSTRAC) to combat illicit financial flows, including those potentially involving crypto-assets.
    *   **Future Outlook:** Despite the cautious stance and regulatory requirements, the CBS has acknowledged the potential underlying technology (blockchain/FinTech) and is researching its application for promoting financial inclusion in Samoa. However, this research does not currently translate into an endorsement or easing of regulations around existing cryptocurrencies.

    In summary, while not explicitly banned for individuals, the practical engagement in cryptocurrency trading in Samoa falls under a regulated framework due to the classification of promoters and exchanges as Financial Institutions under AML/CFT laws, coupled with strong discouragement and warnings from the Central Bank.

3.  **Relevant Text Excerpts:**

    *   **On Legal Tender Status and Risk:**
        > "The bank is also reminding the public that cryptocurrencies such as bitcoin, Onecoin, ethereum, EOS, Lite Coin etc. are not currencies issued or regulated by the bank. “They do not have any legal tender status to be accepted as a currency in Samoa. Investment in such digital currencies is considered very risky and speculative in nature,” said the statement. “People who invest in any of the cryptocurrencies do so at their own risk. There is no guarantee that cryptocurrencies will be accepted as a medium of exchange, or will hold their value."
        > *Source: Samoa Observer, February 21, 2019*

    *   **On Regulation of Promoters:**
        > "Any person who wishes to promote cryptocurrency or digital currency is considered under the Money Laundering Prevention Amendment Act 2018 as a Financial Institution, said the statement. “This means it must have a valid business licence issued in Samoa and is required to follow the Central Bank's reporting requirements for Financial Institutions."
        > *Source: Samoa Observer, February 21, 2019* (Similar statements reported by Samoa Global News, News.Bitcoin.com, CoinGeek)

    *   **On Penalties for Non-Compliance:**
        > "This is in accordance with the recently passed amendments to the Money Laundering Prevention Act 2007... Any promoter of virtual currency who contravenes this Act is subject to an imprisonment term or penalty fine, or both an imprisonment term and a fine."
        > *Source: Samoa Global News, February 21, 2019*

    *   **On Central Bank Discouragement:**
        > "The Central Bank does not currently endorse unregulated cryptocurrencies like bitcoin, Onecoin or any cryptocurrency that has been promoted in Samoa. Therefore, the Central bank does not encourage anyone to invest in any of them.”
        > *Source: Samoa Observer, February 21, 2019*

    *   **On FIU's Role and AML/CFT:**
        > "The FIU was established under the Money Laundering Prevention Act 2007 (MLP Act) to carry out the implementation of the international Anti Money Laundering and Counter Financing of Terrorism (AML/CFT) standards... It is currently a department under the Central Bank of Samoa... FIU is also responsible for the regulation, supervision and enforcement AML and combating CFT requirements as specified under the MLP Act..."
        > *Source: Samoa Financial Intelligence Unit (FIU) Annual Report 2022-2023*

4.  **Source URLs:**

    *   **Samoa Observer (Feb 2019 - CBS Warning):** https://www.samoaobserver.ws/category/samoa/12161 *(Link derived from search result context, direct article link might differ slightly)*
    *   **Samoa Global News (Feb 2019 - CBS Warning):** https://samoaglobalnews.com/2019/02/21/central-bank-issues-warning-on-cryptocurrencies/
    *   **Samoa Observer (Apr 2019 - CBS Concerns & AML Amendment):** https://www.samoaobserver.ws/category/samoa/16140 *(Link derived from search result context, direct article link might differ slightly)*
    *   **News.Bitcoin.com (Mar 2021 - CBS Stance):** https://news.bitcoin.com/central-bank-of-samoa-crypto-companies-will-be-treated-as-financial-institutions/
    *   **CoinGeek (Sep 2018 - AML Amendment Impact):** https://coingeek.com/crypto-firms-samoa-get-treatment-financial-institutions/
    *   **Samoa Financial Intelligence Unit (FIU) Annual Report 2022-2023 (via CBS website):** https://www.cbs.gov.ws/wp-content/uploads/2024/02/FIU-Annual-Report-2022-2023-Final-Copy.pdf *(Specific report link found via search result referencing FIU)*
    *   **Freeman Law (Summary of 2017 CBS Statement):** https://freemanlaw.com/samoa-and-cryptocurrency/
    *   **UPay Blog (Dec 2024 Overview):** https://upay.com/blog/crypto-adoption-around-the-world-samoa

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**End of Report**