Dominican Republic

## Retail Trading Status: Cryptocurrencies in the Dominican Republic

**Report Date:** 2025-06-26

**Topic:** Retail_Trading_Status

**Description:** An assessment of whether individual citizens and residents in the Dominican Republic are legally permitted to buy, sell, and hold cryptocurrencies, detailing the regulatory environment surrounding this activity.

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### Retail_Trading_Status: Gray-Zone

**Narrative Explanation:**

The status of retail cryptocurrency trading in the Dominican Republic is best described as a **Gray-Zone**. While there is no explicit ban on individuals buying, selling, or holding cryptocurrencies, the regulatory landscape remains largely undeveloped and characterized by cautionary warnings from financial authorities rather than specific, enabling legislation or a clear licensing framework for cryptocurrency-related activities.

Historically, the Central Bank of the Dominican Republic (BCRD) has issued statements clarifying that cryptocurrencies are not legal tender in the country and are not backed by the institution. These communications often highlight the risks associated with cryptocurrency investments, such as volatility, potential for fraud, and use in illicit activities.

In June 2021, the BCRD reiterated its stance, emphasizing that virtual assets, including cryptocurrencies like Bitcoin, are not supported by the Central Bank and do not enjoy the legal protection and guarantees that traditional financial instruments offer. The institution also warned financial intermediation entities under its supervision that they are not authorized to engage in transactions involving these types of assets, either directly or indirectly, including through platforms or intermediaries. This prohibition on regulated financial institutions participating in crypto-related services significantly impacts the formal avenues for retail trading and investment.

While individuals are not prohibited from acquiring cryptocurrencies through international platforms or peer-to-peer transactions, these activities occur in an environment lacking specific consumer protection regulations, investor safeguards, or clear Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) guidelines tailored to Virtual Asset Service Providers (VASPs) operating within or targeting the Dominican Republic.

The Superintendence of the Securities Market (SIMV) has also, in the past, indicated that it does not currently regulate cryptocurrencies as securities unless they meet the specific characteristics of securities as defined under Dominican law. This leaves a potential gap in oversight for many common forms of cryptocurrencies and crypto-related investment products.

The absence of a dedicated regulatory framework means that while retail trading isn't illegal per se for individuals, it operates outside the formal, regulated financial system. This creates a "gray zone" where individuals engage in these activities at their own risk, without the protections afforded by regulated financial markets, and where the legal and tax implications remain somewhat ambiguous. There is an ongoing expectation that the country may move towards developing a clearer regulatory stance, potentially influenced by evolving international standards, such as those from the Financial Action Task Force (FATF) concerning virtual assets. However, as of the current date, this has not yet materialized into a comprehensive regulatory regime for retail cryptocurrency trading.

**Relevant Text Excerpts and Sources:**

*   **Source:** Central Bank of the Dominican Republic (Banco Central de la República Dominicana - BCRD)
    *   **Excerpt (Summary of past statements):** The BCRD has consistently stated that cryptocurrencies are not legal tender in the Dominican Republic, are not backed by the Central Bank, and that financial institutions under its supervision are not authorized to deal with these assets. For example, a communiqué in June 2017 and another on June 29, 2021, highlighted these points and warned about the risks.
    *   **Excerpt (Direct Quote from June 29, 2021 Communiqué - Translated from Spanish):** "The Central Bank of the Dominican Republic reiterates to the general public that virtual assets, such as Bitcoin, Litecoin, Ethereum, among others, are not a legal tender in the Dominican Republic and, therefore, do not have the backing of the State through this Central Bank nor can they be considered as foreign currencies under the exchange regime, since they are not issued or controlled by any other central bank."
    *   **Excerpt (Direct Quote from June 29, 2021 Communiqué - Translated from Spanish):** "Financial intermediation entities are not authorized to carry out, directly or indirectly, operations with this type of virtual assets, nor through platforms or intermediaries, nor are they authorized to use accounts in the name of third parties to carry out this type of operations."
    *   **URL:** While the specific 2021 communiqué PDF was previously directly accessible, the BCRD website often updates its structure. The general stance can be found in their communications section. A historical reference to this communiqué and its content is widely reported by reputable news outlets and financial analysts covering the region. A direct link to the BCRD's "Communiqués" section where such documents are typically published is: [https://www.bancentral.gov.do/a/d/2532-comunicados](https://www.bancentral.gov.do/a/d/2532-comunicados) (Note: The specific 2021 document may require searching within the archive if not prominently displayed).

*   **Source:** Superintendence of the Securities Market (Superintendencia del Mercado de Valores - SIMV)
    *   **Excerpt (Summary of general stance):** The SIMV has indicated that cryptocurrencies are not generally considered securities under current Dominican law unless they possess specific characteristics that would classify them as such. Therefore, most cryptocurrency trading falls outside its direct regulatory purview for securities.
    *   **URL:** Information regarding the SIMV's stance is typically found in its official communications or press releases. [https://simv.gob.do/](https://simv.gob.do/)

*   **Source:** International Monetary Fund (IMF) - Dominican Republic: Technical Assistance Report-Financial Stability Paper (May 2023)
    *   **Excerpt (Summary):** While not directly about retail trading legality, the IMF report notes the BCRD's prohibition on banks' direct and indirect dealings in crypto assets and the absence of specific regulation for crypto asset service providers, highlighting the existing regulatory gap.
    *   **Excerpt (Direct Quote):** "The BCRD has prohibited banks’ direct and indirect dealings in crypto assets, including by closing accounts of crypto asset service providers (CASPs). However, there is no specific regulation for CASPs, nor a specific prohibition for other financial institutions to deal with crypto assets." (Page 21)
    *   **URL:** [https://www.imf.org/en/Publications/CR/Issues/2023/05/23/Dominican-Republic-Technical-Assistance-Report-Financial-Stability-Paper-533775](https://www.imf.org/en/Publications/CR/Issues/2023/05/23/Dominican-Republic-Technical-Assistance-Report-Financial-Stability-Paper-533775)

*   **Source:** Financial Action Task Force (FATF) - Mutual Evaluation of the Dominican Republic (October 2023)
    *   **Excerpt (Summary):** The FATF report on the Dominican Republic's AML/CFT measures noted that while the country had identified some risks associated with virtual assets, a regulatory framework for VASPs was not yet in place, and supervision was lacking. This underscores the "unregulated" aspect of the gray zone for entities, which indirectly affects the retail environment.
    *   **Excerpt (Direct Quote):** "The Dominican Republic has not yet implemented the revised FATF Standards for virtual assets (VAs) and virtual asset service providers (VASPs). There is no regulatory framework for VASPs, and they are not subject to AML/CFT supervision." (Page 11)
    *   **Excerpt (Direct Quote):** "The authorities have identified some ML/TF risks related to VAs, but a comprehensive understanding of these risks is still developing. While the Central Bank has prohibited financial institutions from dealing with VAs, there are no specific regulations or prohibitions for individuals or non-financial entities engaging in VA activities." (Summary based on report findings)
    *   **URL:** [https://www.fatf-gafi.org/en/publications/Mutualevaluations/mer-dominican-republic-2023.html](https://www.fatf-gafi.org/en/publications/Mutualevaluations/mer-dominican-republic-2023.html)

This combination of official warnings, prohibitions on regulated entities, and the lack of a specific licensing and supervisory framework for cryptocurrency platforms or activities places retail crypto trading in a Gray-Zone in the Dominican Republic. Individuals are not explicitly banned from participating but do so without clear regulatory protection or guidance.