Solomon Islands

## Retail Cryptocurrency Trading Status Report: Solomon Islands

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

**2. Detailed Narrative Explanation:**

The Solomon Islands currently lacks specific legislation that explicitly permits or prohibits the buying, selling, and holding of cryptocurrencies like Bitcoin by individual citizens and residents. This places retail cryptocurrency trading in a legal "grey area" where it is neither formally authorized nor banned.

The Central Bank of Solomon Islands (CBSI) has adopted a cautious and discouraging stance towards cryptocurrencies. It has issued public warnings emphasizing that cryptocurrencies are not legal tender in the Solomon Islands, meaning they cannot be used as official currency for transactions in the same way as the Solomon Islands Dollar (SBD). The CBSI explicitly states that it does not issue or regulate these digital assets.

Key concerns highlighted by the CBSI include the high volatility and speculative nature of cryptocurrency investments, posing significant risks to investors who could lose their money. The CBSI also points to the potential use of cryptocurrencies for illicit activities such as money laundering and tax evasion due to their often anonymous nature. Consequently, the CBSI strongly discourages the public from investing in cryptocurrencies, making it clear that any such investments are undertaken entirely at the individual's own risk, without regulatory protection or recourse.

Despite these warnings and the lack of regulation, the act of trading cryptocurrencies itself is not illegal. Residents can technically use international cryptocurrency exchanges, as there are no domestic platforms. However, these activities occur outside the purview of Solomon Islands' financial regulations, including specific Know Your Customer (KYC) or Anti-Money Laundering (AML) requirements tailored for crypto platforms. General warnings about online scams, including those involving cryptocurrency investment schemes, have been issued by the CBSI's Financial Intelligence Unit (SIFIU).

It is noteworthy that while discouraging private cryptocurrencies, the Solomon Islands is exploring the potential of digital currency through its own Central Bank Digital Currency (CBDC) pilot project, named "Bokolo Cash," developed in partnership with Japanese company Soramitsu. This indicates an interest in digital financial technology but under strict central control, contrasting sharply with its stance on decentralized cryptocurrencies.

In summary, while individuals in the Solomon Islands are not legally barred from trading cryptocurrencies, the activity is officially discouraged, unregulated, and carries significant risks acknowledged by the central bank. The regulatory environment remains undeveloped, placing the onus of due diligence and risk management entirely on the individual trader.

**3. Relevant Excerpts:**

*   **Central Bank of Solomon Islands (CBSI) Warning (2019):** "The Central Bank of Solomon Islands (CBSI) has warned the general public that cryptocurrencies (i.e. virtual or digital currencies such as bitcoin, etherium, ripple, and others) are not currencies issued or regulated by the Central Bank. 'These cryptocurrencies do not have any legal tender status to be accepted as a currency in Solomon Islands. CBSI hereby warns the public that investment in such digital currencies is considered very risky and speculative in nature,' the CBSI said in a prepared statement. The CBSI warns that people who invest in any of the cryptocurrencies do so at their own risk..."
    *   *Source:* Solomon Times Online (summarizing CBSI statement)
*   **CBSI Position Statement:** “These cryptocurrencies do not have any legal tender status to be accepted as a currency in Solomon Islands. The Central Bank hereby warned the public that investment in such digital currencies is considered very risky and speculative in nature. People who invest in any of the cryptocurrencies do so at their own risk... The Central Bank does not currently endorse unregulated cryptocurrencies, and therefore, does not encourage anyone to invest in any digital cryptocurrencies.”
    *   *Source:* Central Bank of Solomon Islands (CBSI) Website
*   **Legal Status Overview (2024):** "The Solomon Islands doesn't have any specific laws that say cryptocurrency is either legal or illegal... While people can buy and trade cryptocurrency, the central bank has warned everyone that it's very risky... basic crypto trading itself isn't against the law – it exists in what we call a “grey area,” meaning it's neither officially approved nor banned."
    *   *Source:* UPay Blog
*   **Regulatory Environment (2025):** "Currently, there are no specific laws or regulations in the Solomon Islands that govern cryptocurrencies... While cryptocurrencies are not banned, users should remain aware of any potential future regulations that may impact their use."
    *   *Source:* Carlos Maiz Blog (Independent Analysis)
*   **CBSI Financial Intelligence Unit (SIFIU) Warning on Scams:** "Online scams include various forms such as phishing emails, fraudulent websites, fake online shopping platforms, and social media scams. These scams often aim to steal personal information, money, or even trick victims into making payments to false online investment schemes such as bitcoins and other cryptocurrencies promising large monetary benefits."
    *   *Source:* Central Bank of Solomon Islands (CBSI) Website - Press Release

**4. Source Links:**

*   **CBSI Statement Summary (Solomon Times Online):** [https://www.solomontimes.com/news/cbsi-warns-public-that-cryptocurrencies-are-unregulated/9618](https://www.solomontimes.com/news/cbsi-warns-public-that-cryptocurrencies-are-unregulated/9618)
*   **CBSI Position on Cryptocurrencies:** [https://www.cbsi.com.sb/cbsis-position-on-crypto-currencies/](https://www.cbsi.com.sb/cbsis-position-on-crypto-currencies/)
*   **CBSI Concerns Regarding Cryptocurrencies:** [https://www.cbsi.com.sb/cryptocurrencies-why-it-is-a-concern/](https://www.cbsi.com.sb/cryptocurrencies-why-it-is-a-concern/)
*   **UPay Blog - Crypto Adoption in Solomon Islands:** [https://upay.digital/blog/crypto-adoption-around-the-world-solomon-islands/](https://upay.digital/blog/crypto-adoption-around-the-world-solomon-islands/) (Note: While a blog, it accurately summarizes the known situation and CBSI stance).
*   **Carlos Maiz Blog - How to Buy Crypto in Solomon Islands:** [https://carlosmaiz.com/en/how-to-buy-cryptocurrencies-in-the-solomon-islands/](https://carlosmaiz.com/en/how-to-buy-cryptocurrencies-in-the-solomon-islands/) (Note: Independent analysis, useful for understanding practical aspects).
*   **CBSI SIFIU Warning on Online Scams:** [https://www.cbsi.com.sb/press-release-12-23-public-warning-stay-alert-against-online-scams/](https://www.cbsi.com.sb/press-release-12-23-public-warning-stay-alert-against-online-scams/)