Togo

## Report: Retail Cryptocurrency Trading Status in Togo

**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 Assessment:** April 13, 2025

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### 1. Current Status

**Gray-Zone**

### 2. Narrative Explanation

The status of retail cryptocurrency trading (buying, selling, holding) for individual citizens and residents in Togo falls into a **Gray-Zone**. There is no specific legislation in Togo that explicitly permits or prohibits individuals from engaging in cryptocurrency activities. However, the regulatory environment is characterized by a lack of dedicated frameworks, strong warnings from regional and national authorities, and actions taken against crypto-related businesses, creating significant ambiguity and risk for retail participants.

**Regional Context (WAEMU & BCEAO):**
Togo is a member of the West African Economic and Monetary Union (WAEMU), and its monetary policy is governed by the Central Bank of West African States (BCEAO). The BCEAO has consistently adopted a cautious and restrictive stance towards cryptocurrencies.
*   It does not recognize cryptocurrencies as legal tender within the WAEMU zone.
*   The BCEAO has issued warnings advising the public against trading in cryptocurrencies, citing risks such as lack of auditability, volatility, absence of consumer protection, and potential use for illicit activities.
*   While these warnings primarily target financial institutions under its supervision (prohibiting them from dealing in crypto-assets), they also strongly discourage participation by the general public.

**National Context (Togo):**
*   **No Specific Regulation:** Togo currently lacks specific laws or regulations governing the creation, trading, or holding of cryptocurrencies by individuals. Their use is neither explicitly authorized nor prohibited by law for retail users.
*   **Government Actions:** Despite the absence of a specific ban on individual activity, the Togolese government has taken action against companies operating in the cryptocurrency trading sector. In March 2021, the state issued formal notices requesting the closure of several companies involved in cryptocurrency trading, deeming their activities irregular as they lacked necessary approvals from the BCEAO, the Regional Council for Public Savings and Financial Markets (CREPMF), or the Ministry of Economy and Finance.
*   **CREPMF Warnings:** The CREPMF, the regional financial market regulator, has also warned the public, particularly in Benin, Niger, and Togo, about investment offers from companies specializing in cryptocurrency trading, labeling their activities as illegal due to lack of authorization.
*   **High Adoption Despite Lack of Regulation:** Paradoxically, reports indicate significant cryptocurrency usage and adoption in Togo, sometimes ranking it high in Africa for DeFi (Decentralized Finance) adoption indices. This usage occurs within the unregulated space, often through peer-to-peer (P2P) platforms or international exchanges accessible online. Some observers suggest this high activity might be partly due to users from neighboring countries with stricter controls (like Nigeria) utilizing Togo's less technically restrictive environment.
*   **Recent Warnings:** As recently as November 2024, the Togolese Ministry of Economy and Finance issued a public warning against fraudulent online messages falsely attributed to the Ministry, which encouraged citizens to invest in cryptocurrencies. This reinforces the government's cautious stance and highlights the risks of scams in the unregulated market.

**Conclusion on Status:**
The situation remains a 'Gray-Zone' because:
1.  There is no explicit law banning individuals from buying, selling, or holding crypto.
2.  There is no specific regulatory framework authorizing and governing these activities for individuals (e.g., licensed exchanges, specific KYC/AML rules for crypto platforms operating domestically).
3.  Regional and national authorities (BCEAO, CREPMF, Togolese Government) have issued strong warnings against participation and have taken action against unregistered crypto businesses, creating a hostile and uncertain environment.
4.  Cryptocurrencies are not recognized as legal tender.
5.  Individuals engaging in crypto activities do so at their own risk, without the consumer protection afforded by regulated financial activities.

While technically not illegal for individuals through direct prohibition, the lack of legal recognition, absence of regulated local platforms, official warnings, and enforcement actions against related businesses place retail crypto trading firmly in a complex and ambiguous legal space.

### 3. Supporting Excerpts and Sources

*   **On Lack of Specific Regulation & Authorization:**
    *   "Regarding Togo, cryptocurrency is frequently used in the country even though there is no specific regulations or law in this field. However, the use of cryptocurrency is neither expressly authorized nor specifically prohibited." (John W Ffooks & Co, 2022-04-28)
    *   "No regulation for crypto-assets. Cryptocurrencies are therefore not legal tender in WAEMU. Their use therefore falls within the scope of freedom of contract." (WTS Global, 2025-04-07)
    *   "Currently, there are no specific laws or regulations governing cryptocurrencies in the country. This means that cryptocurrency exists in a legal gray area - it is neither explicitly authorized nor completely prohibited." (UPay Blog, 2024-12-16)

*   **On Government/Regulatory Actions & Warnings:**
    *   "Nevertheless, the state did request on 30 March 2021, through letters of formal notice, the closure of companies operating in the trading of cryptocurrencies." (John W Ffooks & Co, 2022-04-28)
    *   "According to the Banque Centrale des Etats de l'Afrique de l'Ouest (BCEAO), its Governor has advised the population against trading in cryptocurrency as they are not auditable and there is no competent institution responsible in Togo answerable to the authorities." (John W Ffooks & Co, 2022-04-28)
    *   "Furthermore, in an official communiqué signed on 18 March 2021, the Conseil Régional de l'Epargne Publique et des Marchés Financiers (CREPMF) warned people, telling them to be vigilant and asking companies specialized in trading cryptocurrency to cease their illegal activities." (John W Ffooks & Co, 2022-04-28)
    *   "Fin mars 2021, le gouvernement a tenté de réguler le secteur en mettant fin aux activités de “ces entreprises”, qui n'ont pas reçu « l'agrément obligatoire ou l'autorisation préalable de la Banque Centrale des États de l'Afrique de l'Ouest (BCEAO), du Conseil Régional de l'Épargne Publique et des Marchés Financiers (CREPMF) de l'UMOA ou du Ministère de l'Économie et des Finances »." [Translation: End of March 2021, the government attempted to regulate the sector by ending the activities of "these companies", which had not received "the mandatory approval or prior authorization from the BCEAO, the CREPMF of UMOA or the Ministry of Economy and Finance".] (Togo First, 2021-09-13)
    *   "Depuis quelques jours, un prétendu message attribué au Ministère de l'économie et des finances propose des sessions d'investissement en ligne sur les cryptomonnaies aux citoyens. Il s'agit d'une tentative grossière d'escroquerie et le ministère dément formellement être à l'origine de cette initiative." [Translation: For several days, an alleged message attributed to the Ministry of Economy and Finance has been offering online investment sessions in cryptocurrencies to citizens. This is a crude scam attempt and the ministry formally denies being the originator of this initiative.] (YOP L-FRII / Ministry of Economy and Finance Communiqué, 2024-11-16)

*   **On Legality for Individuals:**
    *   "Is cryptocurrency legal in Togo? Yes, buying Bitcoin is legal in Togo. You can safely buy and sell cryptocurrency using a Togolese crypto exchange. However, many cryptocurrency exchanges aren't regulated in Togo, as the legislation has yet to catch up with the reality of the crypto market." (Invezz, 2025-02-21) *[Note: While this source states "legal", the context provided about lack of regulation aligns with the 'Gray-Zone' assessment rather than 'Allowed-Regulated' or 'Allowed-Unregulated' given the official warnings and actions.]*
    *   "Adoption Status: Cryptocurrencies are not officially recognized as legal tender in Togo. However, people can still buy, sell, and use them as an investment or a means of exchange." (UPay Blog, 2024-12-16)

### 4. Source URLs

*   **John W Ffooks & Co (Legal Firm):** `https://www.jwflegal.com/news/crypto-francophone-africa` (Provides overview including Togo, BCEAO stance, CREPMF warning, state action against companies)
*   **WTS Global (Tax & Legal Consulting):** `https://wts.com/global/publishing-article/togo-exchange-control-insights~publishing-article?language=en` (Confirms no specific crypto regulation in WAEMU/Togo as of early 2025)
*   **UPay Blog (Crypto Service Provider):** `https://upay.co/blog/crypto-adoption-around-the-world-togo/` (Describes the legal gray area and BCEAO warnings)
*   **Togo First (News Outlet):** `https://www.togofirst.com/fr/finances/1309-8226-cryptomonnaie-le-togo-en-tete-de-la-finance-decentralisee-en-afrique-selon-chainalysis` (Reports on high adoption, government action against irregular platforms, and lack of BCEAO technical controls)
*   **YOP L-FRII (News Outlet reporting Ministry Communiqué):** `https://yoplfrii.com/article/2024/11/16/togo-cryptomonnaies-le-gouvernement-met-en-garde-et-appelle-a-la-vigilance-des-populations` (Reports recent Ministry of Finance warning against crypto investment scams)
*   **Invezz (Financial News/Comparison):** `https://invezz.com/exchange/best-bitcoin-exchange/togo/` (States legality but notes lack of regulation)
*   **Library of Congress (Report on Global Regulation - Nov 2021):** `https://www.loc.gov/law/help/cryptocurrency/world-survey.php` (Categorizes Togo under implicit ban due to BCEAO stance, though direct individual prohibition isn't confirmed)
*   **World Bank (WAEMU Report):** `https://documents.worldbank.org/en/publication/documents-reports/documentdetail/099330003072234932/p1743110ba57e70a60a94a00c162e37959e` (Mentions BCEAO research on CBDCs but notes lack of crypto-asset regulation despite high usage in Togo)
*   **République Togolaise (Official Government Portal - General Article):** `https://www.republicoftogo.com/toutes-les-rubriques/eco-finance/les-cryptomonnaies-ont-revolutionne-le-paysage-financier-mondial` (General article discussing crypto pros/cons and mentioning a specific app available in the region)

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**Disclaimer:** This report reflects the regulatory status based on available information up to the date of assessment. The cryptocurrency regulatory landscape can change rapidly.