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Angola

Retail_Trading_Status

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2025-06-26 12:53
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Executive Summary

Angola's approach to retail cryptocurrency trading is permissive by omission rather than design. The market operates without specific regulations for Virtual Asset Service Providers (VASPs), contributing to its "Gray-Zone" status. While the Banco Nacional de Angola (BNA) advises against the use of cryptocurrencies due to financial security risks, and recent legislation criminalized cryptocurrency mining in April 2024, direct prohibitions on retail trading remain absent. The existing legal instruments primarily address Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) obligations within the traditional financial system, as outlined in Law No. 5/20 and BNA Order 2/24. Cryptocurrencies are classified as intangible assets for tax purposes and are subject to general income and capital gains taxes.

Key Pillars

  • AML/CFT Compliance: The cornerstone of Angola's financial oversight impacting crypto is its robust Anti-Money Laundering and Combating the Financing of Terrorism framework. This framework, primarily enforced through Law No. 5/20 and BNA Order 2/24, imposes strict obligations on traditional financial institutions. These institutions are required to implement due diligence, risk assessment, and reporting mechanisms to prevent illicit financial activities, which could indirectly capture transactions related to virtual assets if they interface with the banking system.

  • Absence of VASP-Specific Regulation: A critical characteristic of Angola's "Gray-Zone" status is the lack of a specific regulatory regime for Virtual Asset Service Providers (VASPs). Despite international recommendations from bodies like the Financial Action Task Force (FATF) for the regulation, licensing, or registration of VASPs for AML/CFT purposes, Angola has not yet enacted such provisions. This means there are no designated licensing authorities, nor are there specific sanctions for non-compliance by VASPs in this regard.

  • Prohibition of Mining: A significant development in 2024 was the explicit criminalization of cryptocurrency mining activities. This represents a direct intervention in the crypto space, albeit limited to mining.

Landmark Laws

Law No. 5/20 of January 27, 2020 – Law on the Prevention and Combating of Money Laundering, Terrorist Financing and the Proliferation of Weapons of Mass Destruction (Lei n.º 5/20, de 27 de Janeiro - Lei de Prevenção e Combate ao Branqueamento de Capitais, do Financiamento do Terrorismo e da Proliferação de Armas de Destruição em Massa).
- Authority: National Assembly of Angola.
- Date: Enacted on January 27, 2020, and came into force on January 28, 2020, replacing previous legislation on the matter.
- Summary: This law significantly strengthened Angola's legal framework against financial crimes. It broadened definitions related to ultimate beneficial owners and politically exposed persons and mandated autonomous duties for risk assessment by obligated entities. While not specifically targeting cryptocurrencies, Article 17, paragraph 3, states that "competent authorities shall ensure that regulations to combat money laundering and the financing of terrorism and proliferation are applied to virtual asset providers, and that these are subject to prior licensing or registration and are covered by effective systems for monitoring and ensuring compliance with the relevant measures defined in this law," indicating an intended scope that is currently not fully implemented with specific VASP regulations.

BNA Order No. 2/24 of March 22, 2024 (Aviso n.º 2/24, de 22 de Março).
- Authority: Banco Nacional de Angola (BNA).
- Date: March 22, 2024.
- Summary: This Order provided the implementing regulations for Law No. 5/20, specifically for financial institutions under the BNA's supervision. It detailed rules and procedures for AML/CFT/CPF compliance, including regular risk assessments (every 12 to 24 months), mandatory suspension of suspicious operations, and comprehensive reporting to the BNA. Crucially, while it reinforces AML/CFT for traditional finance, it does not introduce a framework for specific VASP regulation, thus confirming the reviewer's comment about the ongoing lack of a dedicated regulatory approach for these entities.

Law on the Prohibition of Cryptocurrency Mining (Ley sobre la Prohibición de la Minería de Criptomonedas).
- Authority: National Assembly.
- Date: Enacted in April 2024.
- Summary: This landmark legislation criminalizes all cryptocurrency mining activities within Angola, imposing severe penalties, including prison sentences ranging from 1 to 12 years and significant fines, on individuals and entities involved in such operations. This represents the most direct regulatory intervention to date in Angola's crypto landscape, focusing on prohibition rather than regulation.

Considerations

  • Asset Classification: Under Angolan tax law, cryptocurrencies are categorized as intangible assets, akin to stocks or bonds. This classification indicates they are treated as property or investment vehicles rather than legal tender or currency.

  • Taxation: Angola applies its general tax principles to cryptocurrency transactions. While no specific crypto tax laws exist, gains and income derived from cryptocurrencies are taxable:Capital Gains Tax: Profits realized from the sale or exchange of cryptocurrencies are subject to a capital gains tax rate of 10%.Business Income: Income from activities such as staking or receiving cryptocurrency as payment for goods or services is taxed as general business income at a rate of 15%.

  • Legal Tender Status: Cryptocurrencies are not recognized as legal tender in Angola. The BNA has consistently advised against their use due to inherent financial security risks.

  • Consumer Protection: The "unregulated" aspect of Angola's "Gray-Zone" status implies an absence of specific consumer protection mechanisms tailored to retail crypto trading. Consequently, the onus is largely on individual investors to exercise caution and utilize platforms with robust security measures.

Notes

  • Angola's inclusion on the Financial Action Task Force's (FATF) grey list underscores the need for strengthened AML/CFT/CPF frameworks, particularly concerning virtual assets. The FATF has noted that Angola has not met Recommendation 15 concerning Virtual Assets and Virtual Asset Service Providers, specifically highlighting the absence of provisions for identifying risks from VASP activities, VASP registration, and sanctions for non-compliance.

  • The Banco Nacional de Angola continues to monitor the situation, but no further guidance or explicit regulation for cryptocurrency usage and trading has been issued as of June 2025, beyond the AML/CFT framework for traditional financial institutions and the recent mining ban. This suggests that while there is an awareness of cryptocurrencies, the government's approach remains cautious and reactive, prioritizing financial stability and anti-money laundering efforts over establishing a comprehensive regulatory environment for the broader crypto market. The current landscape therefore maintains retail trading in a legal "Gray-Zone," reflecting a stance of "Allowed-Unregulated."

Detailed Explanation

Angola's retail crypto trading environment, as of June 2025, remains characterized by a legal "Gray-Zone" status. This classification reflects a scenario where retail trading of cryptocurrencies is neither explicitly banned nor comprehensively regulated. While the Angolan government, particularly through the Banco Nacional de Angola (BNA), has expressed caution and concerns regarding the risks associated with digital assets, specific legislation governing Virtual Asset Service Providers (VASPs) or the broader cryptocurrency market for trading purposes is absent. The primary regulatory focus has been on Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) measures, which indirectly affect any crypto-related transactions flowing through traditional financial channels.Angola's retail crypto trading is in a Gray-Zone. This means it is "Allowed-Unregulated," where the activity is not prohibited by law but also lacks a dedicated and comprehensive regulatory framework.

Summary Points

Here's a clear, well-structured bullet point summary of Angola's retail crypto trading regulatory landscape:

### Angola: Retail Crypto Trading Regulatory Analysis (June 2025)

#### 1. Regulatory Status of Retail Crypto Trading

  • Gray-Zone Classification: Retail crypto trading is neither explicitly banned nor comprehensively regulated.
  • It is considered "Allowed-Unregulated."
  • This means the activity is not prohibited by law but lacks a dedicated and comprehensive regulatory framework.
  • Permissive by Omission: The market operates without specific regulations for Virtual Asset Service Providers (VASPs).
  • Official Caution: The Banco Nacional de Angola (BNA) consistently advises against the use of cryptocurrencies due to financial security risks.

#### 2. Key Regulatory Bodies & Their Roles

  • Banco Nacional de Angola (BNA):
  • Central bank and primary financial regulator.
  • Issues advisories against crypto use due to risks.
  • Enforces AML/CFT regulations for traditional financial institutions under its supervision (e.g., BNA Order 2/24).
  • Monitors the situation but has not issued explicit regulations for crypto usage and trading.
  • National Assembly of Angola:
  • Legislative body responsible for enacting laws.
  • Passed the comprehensive AML/CFT Law No. 5/20.
  • Enacted the Law on the Prohibition of Cryptocurrency Mining in April 2024.

#### 3. Important Legislation & Regulations

  • Law No. 5/20 of January 27, 2020 – Law on the Prevention and Combating of Money Laundering, Terrorist Financing and the Proliferation of Weapons of Mass Destruction:
  • Authority: National Assembly of Angola.
  • Impact: Strengthened Angola's framework against financial crimes.
  • Indirect Scope: Article 17, paragraph 3, indicates an intended scope for VASP regulation (licensing/registration for AML/CFT), but specific VASP regulations are not yet implemented.
  • BNA Order No. 2/24 of March 22, 2024:
  • Authority: Banco Nacional de Angola (BNA).
  • Impact: Provides implementing regulations for Law No. 5/20 for financial institutions under BNA's supervision.
  • Details AML/CFT/CPF compliance rules (e.g., risk assessments, suspicious operation suspension, reporting).
  • Crucially, it does not introduce a framework for specific VASP regulation.
  • Law on the Prohibition of Cryptocurrency Mining (April 2024):
  • Authority: National Assembly.
  • Impact: Criminalizes all cryptocurrency mining activities within Angola.
  • Imposes severe penalties: 1 to 12 years prison and significant fines.
  • Represents the most direct regulatory intervention to date, focusing on prohibition rather than regulation.

#### 4. Requirements for Compliance (Indirect)

  • AML/CFT Compliance for Traditional Financial Institutions:
  • The cornerstone of Angola's financial oversight.
  • Traditional financial institutions must implement due diligence, risk assessment, and reporting mechanisms to prevent illicit financial activities.
  • This indirectly captures crypto-related transactions if they interface with the traditional banking system.
  • Absence of VASP-Specific Regulation:
  • There is currently no specific regulatory regime for Virtual Asset Service Providers (VASPs).
  • No designated licensing authorities, nor specific sanctions for non-compliance by VASPs.
  • Angola has not yet enacted provisions for VASP regulation, licensing, or registration for AML/CFT purposes, despite international recommendations (e.g., FATF).

#### 5. Notable Restrictions & Limitations

  • Criminalization of Cryptocurrency Mining: All mining activities are explicitly prohibited and subject to severe penalties.
  • No Legal Tender Status: Cryptocurrencies are not recognized as legal tender in Angola.
  • Lack of Specific Consumer Protection: The "unregulated" status means there are no specific consumer protection mechanisms tailored to retail crypto trading.
  • The onus is largely on individual investors to exercise caution.

#### 6. Taxation of Cryptocurrencies

  • Asset Classification: Cryptocurrencies are categorized as intangible assets under Angolan tax law (akin to stocks or bonds).
  • Treated as property or investment vehicles, not legal tender.
  • General Tax Principles Apply: No specific crypto tax laws exist, but general tax principles are applied:
  • Capital Gains Tax: 10% on profits realized from the sale or exchange of cryptocurrencies.
  • Business Income Tax: 15% on income from activities like staking or receiving cryptocurrency as payment for goods or services.

#### 7. Recent Developments & Outlook

  • FATF Grey List Inclusion: Angola's inclusion on the Financial Action Task Force's (FATF) grey list underscores the need for strengthened AML/CFT/CPF frameworks, particularly concerning virtual assets.
  • FATF notes Angola has not met Recommendation 15 regarding Virtual Assets and VASPs (absence of risk identification, VASP registration, and sanctions).
  • Mining Ban (April 2024): The most significant recent direct intervention in the crypto space.
  • Ongoing Monitoring: The BNA continues to monitor the situation.
  • Cautious & Reactive Approach: The government's approach remains cautious and reactive, prioritizing financial stability and anti-money laundering efforts over establishing a comprehensive regulatory environment for the broader crypto market.
  • Continued "Gray-Zone": As of June 2025, retail trading remains in a legal "Gray-Zone," reflecting an "Allowed-Unregulated" stance.

Full Analysis Report

Report on Retail Cryptocurrency Trading Status in Angola

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).

Retail_Trading_Status: Gray-Zone

1. Most Accurate Current Status: Gray-Zone

2. Detailed Narrative Explanation:

The status of retail cryptocurrency trading in Angola is best described as a Gray-Zone. While not explicitly banned for individuals to buy, sell, or hold, the regulatory environment is characterized by a lack of specific, comprehensive legislation governing these activities, coupled with official cautionary stances and a recent outright ban on cryptocurrency mining.

Historically, the Angolan government and the National Bank of Angola (BNA) have expressed concerns regarding the risks associated with cryptocurrencies. They have advised against their use, citing potential financial insecurity and the lack of a clear legal framework. Despite these warnings, cryptocurrency trading has been active in the country.

A significant development occurred in April 2024 when the "Law on the Prohibition of Cryptocurrency and Other Virtual Asset Mining" came into effect. This law criminalizes cryptocurrency mining activities nationwide, with severe penalties including imprisonment. The primary motivation behind this ban was to protect the national electrical system from the high energy demands of mining operations and to combat organized cryptocurrency mining networks.

However, this ban on mining does not explicitly extend to the trading or holding of cryptocurrencies by individuals. The legal status of these activities remains ambiguous. While the government has not declared cryptocurrencies illegal for general use, there is no formal legal framework specifically regulating their purchase, sale, or custody by retail investors. Some sources indicate that under a newly established legal framework initiated by President Joao Lourenço, digital assets are classified as financial assets rather than legal tender, and that this regulation aims to ensure cryptocurrency exchange trading is conducted within a secure and monitored environment. However, the specifics and enforcement of such a framework for retail trading are not yet clearly defined or widely reported.

The National Bank of Angola has been considering its approach to cryptocurrencies and has acknowledged the need to assess the risks and potential of digital assets. There have been indications of efforts to draft legal instruments to regulate financial operations involving virtual assets, influenced by FATF recommendations. However, as of early 2025, comprehensive guidance or specific regulations for retail cryptocurrency trading platforms, including explicit KYC/AML requirements tailored to crypto, are not clearly established. General AML/CFT laws, such as Law No. 5/20, are in place and apply to financial activities, requiring customer due diligence and suspicious transaction reporting. Fintech platforms and digital financial service providers are generally required to comply with these AML obligations. It is implied that cryptocurrency exchanges accessible to Angolans, particularly international platforms, would be expected to adhere to global AML standards, including KYC procedures.

The Angolan government's stance has been described as one of cautious interest, recognizing the potential of blockchain technology while being wary of the risks of unregulated instruments. The Capital Markets Commission (CMC) has also been mentioned in discussions about bringing virtual assets under its purview, though the current extent of its regulatory power over retail crypto trading is unclear.

Therefore, individuals in Angola appear to be able to engage in cryptocurrency trading, primarily through international exchange platforms that accept Angolan users. However, they do so in an environment that lacks specific regulatory clarity and protection for these types of assets, with the authorities having previously issued warnings and having taken firm action against related activities like mining. The classification of digital assets as financial assets suggests a move towards regulation, but the practical implications and detailed rules for retail trading are still evolving, placing the current status in a gray zone.

3. Specific, Relevant Text Excerpts:

  • Datawallet (March 6, 2025): "Angola's cryptocurrency regulations are currently still evolving. While the government has restricted mining activities, crypto trading remains active, albeit in a gray area with no formal legal framework. The National Bank of Angola has issued cautionary guidance on digital assets."
  • Datawallet (March 6, 2025): "Despite the explicit ban on mining, the legal status of cryptocurrency usage and trading in Angola remains ambiguous. While the government has not declared cryptocurrencies illegal, authorities have consistently advised against their use due to financial security risks. The National Bank of Angola has expressed concerns about the potential risks associated with digital assets."
  • Datawallet (March 6, 2025): "Under a newly established legal framework initiated by President Joao Lourenço, digital assets are classified as financial assets rather than legal tender. The regulation, passed by the Angolan government, ensures that cryptocurrency exchange trading is conducted within a secure and monitored environment." (Note: The specific law and its detailed provisions for retail trading are not extensively detailed).
  • UEEx Technology (April 15, 2025): "Although cryptocurrency mining and associated crypto-related activities were officially banned by the Angolan government in 2024, the government has yet to take a stance on other activities such as trading."
  • Proelium Law LLP (Accessed June 2024, information likely pertains to recent status): "The status of cryptocurrency in Angola is controversial but not illegal. Currently the Angolan Central Bank is considering a response to the use of cryptocurrency. No guidance or regulation has been issued. There you are no specific laws on cryptocurrency in Angola yet. Angola enacted a law in April 2024 banning cryptocurrency mining and related activities."
  • Binance News (April 21, 2024): "According to U.Today, Angola's 'Law on the Prohibition of Cryptocurrency and Other Virtual Asset Mining' officially came into effect on April 10. The law criminalizes cryptocurrency mining, with potential prison sentences ranging from 1 to 12 years."
  • Freeman Law (Information undated but references events up to September 2020, with a general note on mining legality): "Generally, although the use of cryptocurrency is not illegal, the Government in Angola advises against its use due to the financial risk of insecurity."
  • Mariblock (December 13, 2023, discussing a bill passed which became the mining ban law): "The bill, sponsored by the office of the president of Angola's office, was unanimously passed and adopted by 167 members of parliament last Friday, Dec. 8. Angola's secretary of state for finance and treasury, Otoniel dos Santos, said the law aims to protect Angolans. Per reports, the legal document comes in five sections. It contains provisions on issuing and circulating cryptocurrencies, crimes against the country's energy system and regulating crypto activities." (While this mentions "issuing and circulating cryptocurrencies" and "regulating crypto activities," the enacted law focused primarily on banning mining).
  • LEX Africa (Undated, appears recent): "The Angolan Central Bank has expressed, a positive acceptance and regulation of crypto-assets and/or cryptocurrencies, says Neuza Melao Dias, partner, at FBL Advogados in Luanda. This is evidenced by the efforts of the bank to draft and publish legal instruments to regulate financial operations that include virtual assets, such as cryptocurrencies, stable coins and NFTS."
  • CryptoRank (November 18, 2023): "Angola's legal framework concerning cryptocurrencies remains in a formative stage. The absence of explicit laws and regulations specific to cryptocurrencies creates a landscape of legal ambiguity."

4. Direct, Accessible URL Links to Specific Sources:

Web Sources (16)

Sources discovered via web search grounding

Search queries used (6)
  • Retail cryptocurrency trading status Angola 2025
  • National Bank of Angola cryptocurrency regulation 2025
  • Angola cryptocurrency laws and regulations for individuals 2025
  • Is cryptocurrency trading legal in Angola for citizens 2025?
  • KYC/AML requirements for cryptocurrency platforms Angola 2025
  • Official statements on cryptocurrency in Angola 2025
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