Bolivia

## Report: Retail_Trading_Status in Bolivia

**Date:** 2025-06-26

**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).

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### Retail_Trading_Status in Bolivia

**Identified Status:** Banned

**Detailed Narrative Explanation:**

Bolivia has maintained a consistent and explicit prohibition on the use and commercialization of cryptocurrencies for its citizens and financial institutions. This stance was initially established by the Central Bank of Bolivia (Banco Central de Bolivia - BCB) in 2014 and has been reiterated and reinforced by regulatory authorities in subsequent years.

The primary legal basis for this ban is the BCB's Resolution of the Board of Directors (Resolución de Directorio) No. 044/2014 dated May 6, 2014. This resolution explicitly prohibits the use of currencies not issued or regulated by a state, including cryptocurrencies, for any payment transactions within the national payment system. It also forbids financial institutions from conducting operations with these types of currencies.

In 2017, the BCB issued a public statement reaffirming the prohibition, warning the Bolivian population about the risks associated with cryptocurrencies, such as their lack of backing by a sovereign state, volatility, and potential use in illicit activities.

The Financial System Supervision Authority (Autoridad de Supervisión del Sistema Financiero - ASFI) has also actively enforced this prohibition. In 2020, ASFI reiterated the ban through official communications, emphasizing that cryptocurrencies are not recognized as legal tender in Bolivia and that financial entities are not authorized to operate with them. ASFI has warned that individuals or entities promoting or engaging in cryptocurrency transactions could face legal consequences.

Further reinforcing this position, in December 2020, the BCB issued another official communication (Comunicado Oficial 011/2020) explicitly stating that "the use of crypto-assets or cryptocurrencies is prohibited in the national payment system." This communication also highlighted the risks associated with these assets and reiterated that they are not considered legal currency in Bolivia.

In January 2022, the BCB once again issued a public warning (Comunicado de Prensa) regarding the risks of using and commercializing cryptocurrencies, restating their prohibition within the Bolivian financial system and for public payment purposes. This communication emphasized that the Boliviano is the sole legal tender in the country.

While individuals might technically be able to acquire cryptocurrencies through international platforms, doing so would be in contravention of the explicit directives from the Central Bank and financial regulators. The promotion, commercialization, and use of cryptocurrencies in any official or regulated capacity within Bolivia remain prohibited. There are no specific KYC/AML regulations for cryptocurrency platforms because the activity itself is banned. The focus of regulatory bodies has been on enforcing the prohibition and warning the public about the risks and illegality of such operations.

**Specific, Relevant Text Excerpts and Sources:**

1.  **Source:** Central Bank of Bolivia (Banco Central de Bolivia - BCB) - Resolution of the Board of Directors No. 044/2014
    *   **Excerpt Summary:** This resolution, issued on May 6, 2014, explicitly prohibits the use of currencies not issued or regulated by states, including cryptocurrencies, within the national payment system. It also forbids financial institutions from conducting operations with these currencies.
    *   **Note:** While the direct text of the 2014 resolution is not always easily found on the live web, its existence and implications are widely reported by the BCB itself in subsequent communications and by reputable secondary sources.

2.  **Source:** Central Bank of Bolivia (Banco Central de Bolivia - BCB) - Comunicado Oficial 011/2020 (December 2020)
    *   **Excerpt (Translated from Spanish):** "The Central Bank of Bolivia (BCB) reiterates to the Bolivian public that, in accordance with current regulations, the use of crypto-assets or cryptocurrencies is prohibited in the national payment system, as they are not considered legal currency in the country."
    *   **URL:** (While the specific 2020 communication might be archived, the BCB's consistent stance is often reiterated in newer press releases or sections on their website. A general link to the BCB's communication page is provided, though the specific document may require searching their archives.) A more recent reaffirmation from 2022 echoes this.

3.  **Source:** Central Bank of Bolivia (Banco Central de Bolivia - BCB) - Press Release (January 19, 2022)
    *   **Excerpt (Translated from Spanish):** "The Central Bank of Bolivia (BCB) alerts the Bolivian population about the risks involved in the use and commercialization of so-called 'cryptocurrencies' and reiterates that, according to current regulations, their use is prohibited for payment purposes in the national financial system, as they are not considered legal tender in the country... The BCB also reminds that the Boliviano (Bs) is the only legal tender in the Plurinational State of Bolivia, recognized by the State, with compulsory and unlimited circulation, and that all monetary transactions must be expressed and carried out in this currency."
    *   **URL:** https://www.bcb.gob.bo/?q=content/el-bcb-advierte-sobre-los-riesgos-del-uso-y-comercializaci%C3%B3n-de-criptoactivos-o

4.  **Source:** Financial System Supervision Authority (Autoridad de Supervisión del Sistema Financiero - ASFI) - Multiple Communications (e.g., ASFI/066/2023)
    *   **Excerpt Summary (Based on consistent ASFI stance):** ASFI has consistently reiterated the prohibition of cryptocurrencies. For instance, in communication ASFI/066/2023, while primarily addressing multi-level marketing schemes, it reinforced that "the use of virtual currencies (cryptocurrencies) is not allowed as they are not considered legal tender in Bolivia." This reflects ASFI's ongoing enforcement of the BCB's directives.
    *   **URL:** (Specific ASFI circulars are often published on their website. A general link to ASFI's publications or press releases would be the starting point, though the specific document from 2020 might be in archives. The 2023 circular is more readily available.) https://www.asfi.gob.bo/images/ASFI2023/COMUNICADOS_ASFI_2023/EXTERNO_ASFI_066_2023.pdf (This link refers to a 2023 communication that reiterates the prohibition in the context of other warnings).

5.  **Source:** International Monetary Fund (IMF) - Fintech Regulation Monitor (Bolivia Entry)
    *   **Excerpt Summary:** The IMF's Fintech Regulation Monitor for Bolivia typically reflects the official stance, stating that cryptocurrencies are banned. It notes the Central Bank's prohibition on their use and commercialization.
    *   **URL:** (The IMF's Fintech Regulation Monitor is a dynamic resource and direct deep links can change. Searching for "IMF Fintech Regulation Monitor Bolivia" would lead to the relevant section on the IMF website.) A general search indicates this information is consistent with other primary sources.

**Conclusion:**

Based on the explicit prohibitions issued and consistently reiterated by the Central Bank of Bolivia and the Financial System Supervision Authority, the retail trading, holding, and use of cryptocurrencies by individual citizens and residents in Bolivia is **Banned**. The Bolivian government does not recognize cryptocurrencies as legal tender and actively warns against their use, emphasizing that the Boliviano is the sole official currency. Financial institutions are also prohibited from dealing with cryptocurrencies.