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Gambia

Retail_Trading_Status

Unclear Unknown
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Analysis ID
#35
Version
Archived
Created
2025-04-12 06:40
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Live

Executive Summary

The retail cryptocurrency trading status in The Gambia is 'Unclear' due to the lack of specific legislation. The Central Bank of The Gambia (CBG) has not issued formal statements on the legality of crypto. While there are no explicit bans, the CBG is exploring a CBDC, expressing a preference for state-controlled digital currency, and some sources suggest AML/KYC regulations are being introduced, creating ambiguity regarding regulatory expectations.

Key Pillars

  • Primary regulator: The Central Bank of The Gambia (CBG), which has adopted a cautious stance, neither explicitly banning nor regulating cryptocurrencies.
  • Core compliance requirements: Some secondary sources suggest AML/KYC requirements are being introduced for exchanges and wallet providers, though this contradicts other reports indicating a lack of specific crypto regulations.
  • Licensing/registration: There are no specific licensing or registration requirements for cryptocurrency exchanges or retail traders.

Landmark Laws

The report mentions no landmark legislations specific to cryptocurrency. The Income and Value Added Tax Act of 2012 does not explicitly cover crypto assets.

Considerations

  • Cryptocurrencies lack a specific legal classification.
  • There are no specific tax laws addressing income or gains derived from cryptocurrency transactions.
  • Regulators have expressed concerns about the potential risks of cryptocurrencies, with the CBG exploring a CBDC to "avert the use and influx of crypto currency in the economy."
  • Operational challenges may exist due to the lack of clear regulatory guidance.

Notes

  • The Central Bank of The Gambia (CBG) is exploring a Central Bank Digital Currency (CBDC) to "avert the use and influx of crypto currency in the economy."
  • An IMF survey indicated that 85% of surveyed Sub-Saharan African countries, including The Gambia, lack specific crypto regulation.
  • The report acknowledges conflicting information and ambiguity regarding regulatory actions.
  • Gambian residents appear to have de facto access to international cryptocurrency exchanges.

Detailed Explanation

The status of retail cryptocurrency trading in The Gambia is 'Unclear' due to the absence of specific legal and regulatory frameworks. Neither the Central Bank of The Gambia (CBG) nor the Gambian government has issued explicit statements defining the legality of cryptocurrency activities. This lack of a dedicated framework allows Gambian residents de facto access to international cryptocurrency exchanges like Binance and Coinbase. The official stance appears to be cautious, with the government and CBG described as having an attitude of "cautious engagement," recognizing potential benefits but also inherent risks. The regulatory framework is considered to be in its "formative stages." The Central Bank of The Gambia is exploring and investing in a Central Bank Digital Currency (CBDC), with a key motivation being "to avert the use and influx of crypto currency in the economy," suggesting a preference for a state-controlled digital currency. Some secondary sources suggest The Gambia is actively introducing regulations, particularly around Anti-Money Laundering (AML) and Know Your Customer (KYC) requirements, but this contradicts the prevalent reporting that specific crypto regulations are absent. An IMF regional survey published in March 2024 reported that 85% of surveyed Sub-Saharan African countries lacked specific crypto regulation, and 80% reported that individuals are not legally allowed to hold and transact in crypto assets. While the survey included responses from The Gambia's central bank, Gambia's specific response isn't isolated, and the findings introduce ambiguity. Consistent with the absence of specific regulation, there are no specific tax laws addressing income or gains derived from cryptocurrency transactions, and the existing Income and Value Added Tax Act of 2012 does not explicitly cover crypto assets. Individuals engaging in crypto activities do so in a regulatory grey area with potential underlying risks and uncertainties regarding future government action or interpretation of existing general financial laws.

Summary Points

Okay, here's the regulatory analysis report on Retail_Trading_Status in Gambia, converted into a clear, well-structured bullet point format:

Retail Cryptocurrency Trading in Gambia: Regulatory Analysis (April 12, 2025)

Overall Status: Unclear

  • Retail cryptocurrency trading (buying, selling, holding by individuals) operates in a regulatory grey area.
  • There is a lack of specific legal and regulatory clarity.

1. Key Regulatory Bodies and Their Roles:

  • Central Bank of The Gambia (CBG):
    • Has not issued a formal, public stance on the legality or illegality of retail cryptocurrency activities.
    • Adopting a "cautious engagement" approach.
    • Exploring and investing in a Central Bank Digital Currency (CBDC), potentially to discourage private cryptocurrency use.
  • Gambian Government:
    • Has not enacted specific laws or regulations governing cryptocurrencies.
    • Official stance appears to be one of caution and observation.

2. Important Legislation and Regulations:

  • Absence of Specific Crypto Legislation:
    • No specific laws or regulations explicitly governing cryptocurrencies.
    • The existing Income and Value Added Tax Act of 2012 does not explicitly cover crypto assets.
  • General Financial Laws:
    • Individuals engaging in crypto activities do so with potential underlying risks and uncertainties regarding future government action or interpretation of existing general financial laws.

3. Requirements for Compliance:

  • Lack of Specific Compliance Requirements:
    • Due to the absence of specific regulations, there are no clearly defined compliance requirements for retail cryptocurrency trading.
  • Potential AML/KYC Regulations:
    • Some secondary sources suggest the introduction or enforcement of AML/KYC requirements for exchanges and wallet providers, but this contradicts the more prevalent reporting that specific crypto regulations are still absent.

4. Notable Restrictions or Limitations:

  • No Explicit Ban:
    • No explicit prohibitions against individuals engaging with cryptocurrencies.
    • Gambian residents appear to be able to access and use international cryptocurrency exchanges.
  • Cautious Regulatory Stance:
    • The official stance appears to be one of caution and observation.
  • CBDC Initiative:
    • The Central Bank of The Gambia is reportedly exploring and investing in its own Central Bank Digital Currency (CBDC). A key motivation cited for this initiative is "to avert the use and influx of crypto currency in the economy," suggesting a preference for a state-controlled digital currency over decentralized private cryptocurrencies and indicating underlying concerns about the latter.
  • IMF Survey Findings:
    • An IMF regional survey published in March 2024, which included responses from The Gambia's central bank, reported that 85% of surveyed Sub-Saharan African countries lacked specific crypto regulation. Significantly, it also stated that 80% of respondents reported that individuals are not legally allowed to hold and transact in crypto assets. While this is a regional aggregate and Gambia's specific response isn't isolated, it introduces a strong element of ambiguity. This finding might reflect the lack of legal tender status, formal recognition, or practical banking limitations rather than an explicit statutory ban on personal ownership or P2P trading, but it contrasts with sources stating there are "no direct prohibitions."

5. Recent Developments or Changes:

  • CBDC Exploration: The CBG's active exploration of a CBDC is a significant development.
  • Conflicting Information: Discrepancies in secondary sources regarding AML/KYC regulations add to the uncertainty.
  • IMF Survey: The IMF survey highlights the broader regional context and potential ambiguity in Gambia's stance.

6. Key Uncertainties:

  • Future Government Action: The lack of clarity creates uncertainty regarding future government regulations or interpretations of existing financial laws.
  • Tax Implications: The absence of specific tax laws addressing cryptocurrency transactions creates uncertainty regarding tax obligations.

Disclaimer: This report is based on publicly available information accessed up to April 12, 2025. The regulatory landscape for cryptocurrencies can change rapidly. This report does not constitute legal or financial advice.

Full Analysis Report

Financial Regulatory Analyst Report: Gambia

Report Date: April 12, 2025

Topic: Retail_Trading_Status (Cryptocurrency)

1. Status Identification

Based on the available information from regulatory bodies, government sources, and reputable secondary analyses, the most accurate current status for retail cryptocurrency trading in Gambia is:

Status: Unclear

2. Detailed Narrative Explanation

The status of retail cryptocurrency trading (buying, selling, holding by individuals) in The Gambia is currently characterized by a significant lack of specific legal and regulatory clarity, leading to an 'Unclear' designation.

  • Absence of Specific Legislation: Multiple sources confirm that The Gambia has not enacted specific laws or regulations explicitly governing cryptocurrencies. Neither the Central Bank of The Gambia (CBG) nor the Gambian government has issued formal, public statements definitively outlining the legality or illegality of retail cryptocurrency activities. This absence of a dedicated framework means there are no explicit prohibitions against individuals engaging with cryptocurrencies.
  • De Facto Accessibility: Due to the lack of explicit bans, Gambian residents appear to be able to access and use international cryptocurrency exchanges for trading and holding digital assets. Platforms like Binance, Coinbase, and others are reportedly accessible to Gambian users.
  • Cautious Regulatory Stance: While not banning crypto, the official stance appears to be one of caution and observation. The government and the CBG are described as having an attitude of "cautious engagement," recognizing potential benefits like financial inclusion but also the inherent risks. The regulatory framework is considered to be in its "formative stages."
  • Central Bank Digital Currency (CBDC) Initiative: Notably, the Central Bank of The Gambia is reportedly exploring and investing in its own Central Bank Digital Currency (CBDC). A key motivation cited for this initiative is "to avert the use and influx of crypto currency in the economy," suggesting a preference for a state-controlled digital currency over decentralized private cryptocurrencies and indicating underlying concerns about the latter.
  • Conflicting Information and Ambiguity: Some recent secondary sources suggest that The Gambia is actively introducing or has enforced regulations, particularly around Anti-Money Laundering (AML) and Know Your Customer (KYC) requirements for exchanges and wallet providers. However, this contradicts the more prevalent reporting that specific crypto regulations are still absent. This discrepancy adds to the overall uncertainty.
  • IMF Survey Findings: An IMF regional survey published in March 2024, which included responses from The Gambia's central bank, reported that 85% of surveyed Sub-Saharan African countries lacked specific crypto regulation. Significantly, it also stated that 80% of respondents reported that individuals are not legally allowed to hold and transact in crypto assets. While this is a regional aggregate and Gambia's specific response isn't isolated, it introduces a strong element of ambiguity. This finding might reflect the lack of legal tender status, formal recognition, or practical banking limitations rather than an explicit statutory ban on personal ownership or P2P trading, but it contrasts with sources stating there are "no direct prohibitions."
  • Lack of Tax Guidance: Consistent with the absence of specific regulation, there are currently no specific tax laws addressing income or gains derived from cryptocurrency transactions in The Gambia. The existing Income and Value Added Tax Act of 2012 does not explicitly cover crypto assets.

Conclusion: The combination of no specific crypto laws, no explicit ban allowing de facto access, a cautious official stance potentially favouring a CBDC over private crypto, conflicting secondary reports on recent regulatory actions, and concerning findings from the IMF survey creates a complex and ambiguous environment. Therefore, the legal and regulatory status for retail cryptocurrency trading remains 'Unclear'. Individuals engaging in crypto activities do so in a regulatory grey area with potential underlying risks and uncertainties regarding future government action or interpretation of existing general financial laws.

3. Supporting Excerpts from Sources

  • Freeman Law: "Gambia has not currently enacted regulations or legislation specifically regulating digital currency yet. Neither the Central Bank of Gambia, nor the Government of The Gambia have made a statement or have publicly presented a stance with regards to cryptocurrencies and their legality." (Source [2])
  • UPay Blog (Dec 2024): "There are no specific regulations or tax laws as regards to cryptocurrency in the country." It also notes, "Previously, Gambia had taken a rather cautious attitude and posture towards cryptocurrencies, tolerating them without specific legal frameworks. This lack of regulation left crypto-transactions in a gray area..." (Source [3])
  • Kotigi.com (Oct 2024): "Gambia, like many African countries, has not yet developed a detailed regulatory framework specifically for cryptocurrencies... As of now, there are no direct prohibitions against using or trading digital currencies in Gambia." (Source [6])
  • Carlos Maiz (Jan 2025): "As of now, The Gambia does not have specific regulations in place regarding cryptocurrencies. The country's central bank, the Central Bank of The Gambia, has not issued any official stance on digital currencies... leaving the use of cryptocurrencies in a somewhat gray area." (Source [7])
  • Cryptopolitan / Binance Square (Dec 2023): "...challenges such as regulatory uncertainties... The lack of a clear regulatory framework for cryptocurrencies in Gambia creates a landscape of uncertainty for both users and service providers." The stance is described as "cautious engagement." (Source [10])
  • UEEx Technology (Apr 2025): "Crypto exchanges are legal in Gambia, as the government has not implemented specific regulations to ban or restrict their use. However, there is limited regulation around cryptocurrency trading..." (Source [9])
  • Gambia Participates (Aug 2023): Reporting on a parliamentary committee meeting discussing the CBG's 2020 report: "...the Central Bank is investing in Central Bank Digital Currency to avert the use and influx of crypto currency in the economy..." (Source [12])
  • IMF FinTech Notes (Mar 2024): Based on a survey including The Gambia: "About 85 percent of surveyed countries have not established crypto assets regulation... Eighty percent of respondents report that people are not legally allowed to hold and transact in crypto assets, which also cannot be exchanged for legal tender." (Source [13])

4. Source Links

  • [2] Freeman Law - Gambia & Cryptocurrency: https://freemanlaw.com/gambia-cryptocurrency-laws/ (Link derived from search result text)
  • [3] UPay Blog - Crypto Adoption Around the World: Gambia: https://upay.digital/blog/crypto-adoption-around-the-world-gambia/ (Link derived from search result text)
  • [4] Crypto Regulation Tracker (General - may require navigation): https://insight.luscombeandco.com/s/cryptocurrency-regulation-tracker (Link derived from search result text)
  • [5] Crowdfund Insider - Cryptocurrency regulation in Africa (Aug 2018): https://www.crowdfundinsider.com/wp-content/uploads/2018/08/Cryptocurrency-regulation-in-Africa-August-2018.pdf (Link derived from search result text)
  • [6] Kotigi.com - Is Pi Network legal in Gambia?: https://kotigi.com/is-pi-network-legal-in-gambia/ (Link derived from search result text)
  • [7] Carlos Maiz - How to Buy Cryptocurrencies in The Gambia: https://carlosmaiz.com/en/blog/how-to-buy-cryptocurrencies-in-the-gambia/ (Link derived from search result text)
  • [8] & [10] Cryptopolitan / Binance Square - How the Crypto Industry in Gambia Offers Unbanked Populations Financial Inclusion: https://cryptorank.io/news/feed/how-the-crypto-industry-in-gambia-offers-unbanked-populations-financial-inclusion-1c7e7 / https://www.binance.com/en/square/post/236088 (Links derived from search result text)
  • [9] UEEx Technology - Best Crypto Exchanges in Gambia (2025): https://ueex.com/en/blog/best-crypto-exchanges-in-gambia/ (Link derived from search result text)
  • [12] Gambia Participates - Finance and Public Accounts Committee Report (Aug 2023): https://gambiaparticipates.org/wp-content/uploads/2023/08/FPAC-Report-on-CBG-2020-Report-and-Financial-Statements.pdf (Link derived from search result text)
  • [13] IMF eLibrary - Central Bank Digital Currency and Other Digital Payments in Sub-Saharan Africa (Mar 2024): https://www.elibrary.imf.org/view/journals/063/2024/001/article-A001-en.xml (Link derived from search result text)
  • [18] Central Bank of The Gambia - Official Website (via Investing.com): http://www.cbg.gm/ (Link derived from search result text)

Disclaimer: This report is based on publicly available information accessed up to the report date. The regulatory landscape for cryptocurrencies can change rapidly. This report does not constitute legal or financial advice.

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