Back to Analyses

Brunei

Retail_Trading_Status

Allowed-Unregulated Unknown
Edit

Status Changed

Previous status: Allowed-UnRegulated

Okay, I have reviewed both the "Previous Analysis" (dated April 12, 2025) and the "New Analysis" (dated June 26, 2025) regarding the Retail_Trading_Status of cryptocurrencies in Brunei Darussalam. Here is a detailed breakdown of the changes that occurred in the analysis result: **Overall Summary of Changes:** The core regulatory status of `Allowed-UnRegulated` remains unchanged between the two reports. Both analyses conclude that individuals in Brunei can trade and hold cryptocurrencies at their own risk, without a specific crypto-regulatory framework in place, but subject to general laws and central bank warnings. The BDCB's stance on cryptocurrencies not being legal tender and its ongoing work towards a future regulatory framework are consistent across both reports. The primary differences lie in: 1. **Refinement and Elaboration of Narrative Details:** The new analysis provides slightly more nuanced explanations in certain areas, particularly concerning AML/CFT and the emerging VASP sector. 2. **Expansion and Diversification of Sources:** The new analysis draws upon a significantly broader and more diverse set of sources, including direct mentions of FATF reports, academic research, and a wider array of secondary news/blog outlets. 3. **Updated Contextual Information:** The new analysis incorporates more recent contextual information, such as the FATF's July 2023 mention of an emerging VASP sector and references to current training courses. 4. **Slight Rephrasing and Restructuring:** While conveying the same core information, the new analysis sometimes rephrases points or structures the narrative slightly differently. **Detailed Changes Section by Section:** **1. Current Status:** * **Previous Analysis:** `Allowed-UnRegulated` * **New Analysis:** `Allowed-UnRegulated` * **Change:** No change in the fundamental status. **2. Detailed Narrative Explanation:** * **Consistency:** * Both reports correctly identify BDCB (formerly AMBD) as the central bank. * Both state cryptocurrencies are not legal tender and not regulated by BDCB. * Both highlight that individuals trade at their own risk and are not protected by BDCB-administered laws for crypto-specific activities. * Both mention that activities *surrounding* or *related* to crypto that fall under existing financial legislation (e.g., deposit-taking, remittance) are subject to BDCB oversight. * Both confirm BDCB has issued public warnings regarding risks (volatility, fraud, illicit use, cybersecurity). * Both note BDCB is developing a future legal and regulatory framework. * **Key Differences/Elaborations in the New Analysis:** * **AML/CFT Framework:** * The **New Analysis** is more explicit in referencing the "Anti-Money Laundering and Counter-Terrorism Financing (AML/CFT) Order from 2010." * It directly links this to "Virtual Asset Service Providers (VASPs)," citing a **FATF (APG Mutual Evaluation Report Summary, July 2023)** note about a "small but emerging virtual assets service providers (VASP) sector" in Brunei. This is a significant addition, providing international context and terminology. * It mentions "training courses available in Brunei" that highlight AML/CFT auditing for crypto exchanges, suggesting growing awareness or capacity building in this area. * The **Previous Analysis** mentioned AML/CFT laws generally and the FIU, and that regulated FIs apply controls, but the VASP/FATF link is new. * **Crypto Adoption and Accessibility:** * The **New Analysis** includes a paragraph stating: "Research indicates that while cryptocurrency adoption is not yet widespread in Brunei and public awareness can be deficient, there is growing interest, particularly among the tech-savvy youth. International cryptocurrency exchanges are accessible to Bruneians, and some sources list popular platforms used in the country." This provides more socio-economic context. * **Emphasis on "Crypto-Specific" Regulation:** The new report frequently uses phrases like "dedicated crypto-focused regulatory framework" or "crypto-specific standpoint" to clearly delineate the lack of targeted rules for crypto itself, versus the application of general financial laws. **3. Relevant Text Excerpts:** * **BDCB Statements (Legality, Regulation, Future):** The core BDCB statements quoted are largely identical or convey the exact same message in both reports. * **BDCB/AMBD Warnings:** Similar content, with the new report citing "The Scoop (2017)" for an AMBD warning, while the previous one cited an "AMBD Public Statement, December 2017." Likely the same source material. * **AML/KYC Excerpts:** * **Previous Analysis:** Quoted "Arctic Intelligence" on CDD requirements for regulated entities and "BDCB Guidelines on Blockchain Platform" regarding AML/CFT compliance for FIs. * **New Analysis:** Does not have a dedicated AML/KYC excerpt section but integrates AML/CFT points into the narrative. Crucially, it adds a quote from **FATF (APG Mutual Evaluation Report Summary, July 2023):** "Some risks are noted in the lending sector and in the small but emerging virtual assets service providers (VASP) sector." This is a key new piece of evidence. * **Additional Excerpts in New Analysis:** The new report includes excerpts from a wider range of secondary sources not present in the previous one: * Proelium Law LLP * Bitrawr * UEEx Technology * (The UPay Blog and Wikipedia excerpts are present in both, though potentially slightly different selections). **4. Source Links:** * This section shows the most significant expansion. * **Previous Analysis:** Relied on BDCB/AMBD (with some potentially outdated links), Freeman Law, Hogan Lovells, UPay Blog, Wikipedia, Arctic Intelligence, The Savey Fox. * **New Analysis:** * Includes many of the same foundational sources (Wikipedia, Hogan Lovells, UPay Blog, The Savey Fox). * **Adds several new types of sources:** * **Direct FATF link:** `https://www.fatf-gafi.org/en/countries/detail/Brunei-Darussalam.html` (and by extension, access to the Mutual Evaluation Report). * **Additional Legal/Consultancy:** Proelium Law LLP. * **Crypto Information Platforms:** Bitrawr, UEEx.com, Invezz. * **News Outlets:** The Scoop. * **Academic/Research Papers:** IGI-Global, ResearchGate (providing links to papers on public perception/awareness). * **Training/Skills Providers (related to AML/CFT/Digital Currencies):** Skillsforafrica.org, trainingcred.com. * **Commercial Compliance Information Sites:** iumail.com, shuftipro.com (though noted as commercial summaries). * **Social Media Reference:** A Reddit link, acknowledged as such, indicating public discussion of warnings. * **Omissions from Previous:** Freeman Law and Arctic Intelligence are not explicitly listed in the new source list, though the information they provided (general legality, AML/CFT basics) is covered by other sources or the narrative. The BDCB Guidelines on Blockchain Platform PDF is also not directly linked in the new list. **Conclusion of Changes:** The new analysis (June 26, 2025) represents an update and refinement of the previous one (April 12, 2025). While the fundamental regulatory conclusion remains the same (`Allowed-UnRegulated`), the new analysis is strengthened by: * **More recent and specific evidence regarding AML/CFT and VASPs**, notably the FATF July 2023 report. * **A broader evidence base** due to a significantly expanded and diversified list of sources, including academic and international regulatory body references. * **Enhanced contextual understanding** by including information on adoption trends and the availability of training. The changes reflect a deeper dive into available information and an effort to incorporate more varied perspectives and official international assessments, even if the on-the-ground regulatory reality in Brunei for retail crypto trading has not substantively shifted in the ~2.5 months between the report dates.

Analysis ID
#434
Version
Latest
Created
2025-06-26 13:10
Workflow Stage
Live

Executive Summary

As of June 2025, retail cryptocurrency trading in Brunei Darussalam is allowed but unregulated. The Brunei Darussalam Central Bank (BDCB) does not recognize cryptocurrencies as legal tender and does not regulate them directly. However, activities surrounding cryptocurrencies may fall under existing financial regulations, such as AML/CFT. The BDCB is in the process of developing a regulatory framework for licensing and supervising cryptocurrencies, but it is not yet in place.

Key Pillars

The primary regulator is the Brunei Darussalam Central Bank (BDCB). Although cryptocurrency trading is allowed, there is no specific regulatory framework governing it. General AML/CFT regulations, specifically the Anti-Money Laundering and Counter-Terrorism Financing (AML/CFT) Order from 2010, apply to financial institutions and other entities under BDCB's oversight, which might extend to some crypto-related activities like money remittance or foreign exchange. There are currently no specific licensing or registration requirements for crypto exchanges operating within Brunei.

Landmark Laws

  • Anti-Money Laundering and Counter-Terrorism Financing (AML/CFT) Order: Issued in 2010. This order and its supporting regulations impose AML/CFT requirements, including KYC/CDD procedures, on financial institutions under BDCB's oversight.

Considerations

Cryptocurrencies are not considered legal tender in Brunei Darussalam. The BDCB has issued warnings regarding the high volatility, speculative nature, and risks of financial loss, fraud, and cybersecurity threats associated with cryptocurrencies. The BDCB emphasizes that individuals dealing in cryptocurrencies are not protected by regulatory safeguards. There is growing interest in cryptocurrencies, particularly among the tech-savvy youth, but public awareness is noted as deficient.

Notes

The BDCB, formerly known as Autoriti Monetari Brunei Darussalam (AMBD), has been monitoring developments in the cryptocurrency space and is in the process of developing a legal and regulatory framework. However, as of June 2025, this framework is not yet in place. International cryptocurrency exchanges are accessible to Bruneians, and these platforms likely adhere to KYC/AML requirements based on their own jurisdictions. The FATF has noted that the virtual asset service provider (VASP) sector in Brunei is small but emerging.

Detailed Explanation

As of June 2025, retail cryptocurrency trading (buying, selling, and holding) is 'Allowed-UnRegulated' in Brunei Darussalam. There are no specific laws explicitly prohibiting the activity, but the sector lacks a dedicated crypto-focused regulatory framework. The Brunei Darussalam Central Bank (BDCB), formerly known as Autoriti Monetari Brunei Darussalam (AMBD), does not recognize cryptocurrencies as legal tender. According to a BDCB statement, "BDCB wishes to reiterate that cryptocurrencies are not legal tender in Brunei Darussalam and are not regulated by BDCB as they operate independently from monetary authorities or central banks." However, the BDCB clarifies that activities surrounding cryptocurrencies may fall under existing financial regulations if they intersect with services under the BDCB's purview, such as deposit-taking, money remittance, foreign exchange, or securities issuance. The BDCB has issued public warnings advising caution due to high volatility, speculative nature, and risks of financial loss, fraud, and cybersecurity threats, emphasizing the lack of regulatory safeguards for investors. In December 2017, AMBD warned, "Members of the public are reminded to be vigilant and to exercise extreme caution when dealing with cryptocurrencies that are privately issued." The BDCB also states, "To date, BDCB has been closely monitoring developments surrounding cryptocurrencies to ensure that the regulatory measures are commensurate with the risks posed... To this end, BDCB is currently developing an appropriate legal and regulatory framework for the licensing and supervision of cryptocurrencies and related activities." While specific crypto-focused KYC/AML regulations for retail trading platforms are not detailed, Brunei has a general Anti-Money Laundering and Counter-Terrorism Financing (AML/CFT) Order from 2010. Financial institutions under BDCB's oversight are subject to these AML/CFT requirements, including KYC/CDD procedures. The FATF noted that the virtual asset service provider (VASP) sector is small but emerging. While cryptocurrency adoption is not yet widespread, there is growing interest, particularly among the tech-savvy youth, and international cryptocurrency exchanges are accessible to Bruneians.

Summary Points

Retail Cryptocurrency Trading in Brunei Darussalam: Regulatory Analysis (June 2025)

I. Overall Regulatory Status:

  • Allowed-UnRegulated: Retail cryptocurrency trading (buying, selling, and holding) is permitted but not specifically regulated.
    • No explicit laws prohibit retail cryptocurrency trading.
    • No dedicated crypto-focused regulatory framework is in place.

II. Key Regulatory Bodies:

  • Brunei Darussalam Central Bank (BDCB) (formerly Autoriti Monetari Brunei Darussalam - AMBD):
    • Role: Primary financial regulator and central bank.
    • Responsibilities:
      • States that cryptocurrencies are not legal tender in Brunei.
      • Does not regulate cryptocurrencies directly as they operate independently.
      • Monitors developments in the cryptocurrency space.
      • Developing a legal and regulatory framework for licensing and supervision of cryptocurrencies and related activities (not yet implemented).
      • Regulates activities surrounding cryptocurrencies if they intersect with existing financial services (e.g., deposit-taking, money remittance, foreign exchange, securities issuance).
    • Actions:
      • Issues public warnings about the risks associated with cryptocurrencies (volatility, speculation, fraud, cybersecurity threats).
      • Advises extreme caution when dealing with cryptocurrencies.

III. Important Legislation and Regulations:

  • No specific crypto-focused legislation exists.
  • General Financial Regulations: May apply to activities surrounding cryptocurrencies if they fall under BDCB's purview.
  • Anti-Money Laundering and Counter-Terrorism Financing (AML/CFT) Order 2010:
    • Applies to financial institutions and other entities under BDCB's oversight.
    • Includes KYC/CDD requirements.
    • Future crypto-specific regulations are expected to incorporate and potentially enhance existing AML/CFT measures for Virtual Asset Service Providers (VASPs).

IV. Requirements for Compliance:

  • No specific crypto-related compliance requirements for retail traders.
  • General AML/CFT Compliance: Financial institutions dealing with cryptocurrencies must comply with existing AML/CFT regulations.
    • KYC/CDD procedures are mandatory.

V. Notable Restrictions or Limitations:

  • Cryptocurrencies are not legal tender.
  • Lack of regulatory safeguards: Individuals dealing in cryptocurrencies are not protected under laws administered by the BDCB.
  • High Risk: BDCB warns of high volatility, speculative nature, and risks of financial loss, fraud, and cybersecurity threats.
  • No specific licensing or oversight for crypto exchanges operating within Brunei.

VI. Recent Developments or Changes:

  • BDCB is developing a legal and regulatory framework for the licensing and supervision of cryptocurrencies and related activities.
    • The framework is not yet in place.
  • Growing interest in cryptocurrencies, particularly among the tech-savvy youth.
  • International cryptocurrency exchanges are accessible to Bruneians.
  • FATF noted risks in the small but emerging VASP sector.

Full Analysis Report

Report on Retail Trading Status of Cryptocurrencies in Brunei Darussalam

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: Allowed-UnRegulated

Narrative Explanation:

As of June 2025, retail cryptocurrency trading (buying, selling, and holding) by individual citizens and residents in Brunei Darussalam is Allowed-UnRegulated. While there are no specific laws explicitly prohibiting the activity, and individuals can engage with cryptocurrencies, the sector is not governed by a dedicated crypto-focused regulatory framework.

The Brunei Darussalam Central Bank (BDCB), formerly known as Autoriti Monetari Brunei Darussalam (AMBD), has consistently stated that cryptocurrencies are not legal tender in the country. This means they are not officially recognized as a medium of exchange for goods, services, or debt repayment. The BDCB also clarifies that it does not regulate cryptocurrencies themselves as they operate independently from monetary authorities. Consequently, individuals dealing in cryptocurrencies are not protected under the laws administered by the BDCB.

Despite the lack of specific regulation for cryptocurrency trading itself, activities surrounding cryptocurrencies may fall under existing financial regulations if they intersect with services an BDCB's purview. This could include businesses or individuals providing services like deposit-taking, money remittance, foreign exchange, or securities issuance, even if these services involve cryptocurrencies.

The BDCB has issued several public statements and warnings advising extreme caution when dealing with cryptocurrencies and their related products due to high volatility, speculative nature, and risks of financial loss, fraud, and cybersecurity threats. These warnings emphasize that the public is not protected by regulatory safeguards when investing in or transacting with cryptocurrencies.

There is an indication that the BDCB is monitoring developments and is in the process of developing an "appropriate legal and regulatory framework for the licensing and supervision of cryptocurrencies and related activities". However, as of the current date, this framework is not yet in place, leaving the retail trading space largely unregulated from a crypto-specific standpoint.

While no specific crypto-focused KYC/AML regulations for retail trading platforms are explicitly detailed in the search results, Brunei has a general Anti-Money Laundering and Counter-Terrorism Financing (AML/CFT) Order from 2010 and supporting regulations. Financial institutions and other entities under BDCB's oversight are subject to these AML/CFT requirements, which include mandatory KYC/CDD procedures. It is plausible that any future crypto-specific regulations would incorporate and potentially enhance these existing AML/CFT measures for Virtual Asset Service Providers (VASPs), a sector noted as small but emerging in Brunei by the FATF. Some training courses available in Brunei also highlight the importance of AML/CFT auditing for cryptocurrency exchanges and the risks associated with digital currencies.

Research indicates that while cryptocurrency adoption is not yet widespread in Brunei and public awareness can be deficient, there is growing interest, particularly among the tech-savvy youth. International cryptocurrency exchanges are accessible to Bruneians, and some sources list popular platforms used in the country. These platforms, if operating internationally, would likely adhere to KYC/AML requirements based on their own jurisdictions, but specific Bruneian mandates for these exchanges are not yet established.

In summary, individuals in Brunei are not legally barred from trading or holding cryptocurrencies. However, this activity occurs in an environment without specific regulations governing cryptocurrencies themselves or dedicated licensing and oversight for crypto exchanges operating within Brunei. General financial laws and AML/CFT obligations may apply to related financial services, and the central bank has issued strong cautionary advice. The status remains "Allowed-UnRegulated" pending the development and implementation of the anticipated specific legal and regulatory framework.

Relevant Text Excerpts and Sources:

  • Brunei Darussalam Central Bank (BDCB): "BDCB wishes to reiterate that cryptocurrencies are not legal tender in Brunei Darussalam and are not regulated by BDCB as they operate independently from monetary authorities or central banks. Nevertheless, the activities surrounding them may be regulated if they constitute any of the activities regulated in the relevant legislation under BDCB's purview where compliance to specific requirements must be adhered to."
  • Brunei Darussalam Central Bank (BDCB): "To date, BDCB has been closely monitoring developments surrounding cryptocurrencies to ensure that the regulatory measures are commensurate with the risks posed. BDCB is aware that, considering the rapid growth of cryptocurrencies globally, there has been heightened interest from the public. To this end, BDCB is currently developing an appropriate legal and regulatory framework for the licensing and supervision of cryptocurrencies and related activities."
  • Brunei Darussalam Central Bank (BDCB) (formerly AMBD) via The Scoop (2017): "The risk of losing its value is high and without any regulatory safeguards, members of the public are not protected under the laws administered by AMBD.”
  • Wikipedia (citing AMBD): "Bitcoin and cryptocurrency is not legal tender in Brunei Darussalam and are not regulated by AMBD (Brunei Monetary Authority). It is not protected under the laws administered by AMBD. AMBD however, advised the public not to be easily enticed by any investment or financial activity advertisements, and to conduct due diligence and understand the financial products properly before participating. There is no law that stated that holding or trading bitcoin is illegal."
  • Proelium Law LLP: "Cryptocurrencies are not legal tender and are not regulated by the Brunei's Monetary Authority. They are unregulated."
  • UPay Blog (citing AMBD Public Statement, December 2017): "Cryptocurrencies are not legal tender in Brunei Darussalam and are not regulated by AMBD. Members of the public are reminded to be vigilant and to exercise extreme caution when dealing with cryptocurrencies that are privately issued."
  • UPay Blog: "While there are no specific laws prohibiting the use or trade of cryptocurrencies, the Autoriti Monetari Brunei Darussalam (AMBD), the country's central bank, has yet to issue formal legislation to regulate or endorse digital currencies."
  • Bitrawr: "Bitcoin and cryptocurrency is legal to hold and trade although not legal tender in Brunei and are not regulated by AMBD (Brunei Monetary Authority). It is also not protected under the laws administered by AMBD."
  • UEEx Technology: "Cryptocurrency exchange providers are legally allowed to operate in Brunei. However, there is no legal framework governing their operations."
  • FATF (APG Mutual Evaluation Report Summary, July 2023): "Some risks are noted in the lending sector and in the small but emerging virtual assets service providers (VASP) sector."

Direct URL Links to Sources:

  • https://en.wikipedia.org/wiki/Legality_of_cryptocurrency_by_country_or_territory
  • https://www.proeliumlaw.com/crypto-regulatory-tracker/
  • https://www.bdcb.gov.bn (Specific BDCB statements may need to be navigated to from the main site, e.g., under "Announcements" or "Publications". The provided link is to the BDCB homepage as direct links to specific statements can change. The content is from a BDCB public statement on cryptocurrencies.)
  • https://upay.blog/crypto-adoption-around-the-world-brunei/
  • https://www.reddit.com/r/Brunei/comments/yz1flk/central_bank_warns_against_cryptoscams/ (This is a Reddit post referencing a central bank warning, ideally, the original BDCB source would be primary, but this indicates public dissemination of such warnings.)
  • https://www.hoganlovells.com/en/blogs/developments-in-digital-assets-and-blockchain/fintech-and-digital-assets-regulatory-developments-tracker (This is a general tracker; specific Brunei information would be within this resource, citing AMBD.)
  • https://thesaveyfox.com/is-bitcoin-legal-in-brunei-ambds-response/
  • https://thescoop.co/2017/12/22/ambd-warns-public-cryptocurrency-dangers/
  • https://skillsforafrica.org/course/anti-money-laundering-aml-and-counter-terrorist-financing-cft-auditing-in-the-digital-age-training-course-brunei-darussalam/
  • https://www.bitrawr.com/buy-bitcoin/brunei
  • https://www.iumail.com/compliance/brunei-aml-kyc-compliance/ (This appears to be a commercial site summarizing regulations, primary BDCB/government sources for AML/CFT orders are preferred but this provides an overview.)
  • https://www.shuftipro.com/aml-compliance/brunei/ (Similar to the above, a commercial summary. Primary sources for the Orders would be official government gazettes or BDCB publications.)
  • https://www.fatf-gafi.org/en/countries/detail/Brunei-Darussalam.html (The link is to the FATF country page for Brunei Darussalam; the Mutual Evaluation Report would be accessible from there.)
  • https://trainingcred.com/course/aml-and-cft-in-banking-sector-course-brunei-darussalam/
  • https://skillsforafrica.org/course/digital-currencies-and-central-bank-digital-currencies-cbdcs-training-course-brunei-darussalam/
  • https://www.igi-global.com/chapter/public-perception-of-awareness-and-adaptation-of-cryptocurrency-in-brunei-darussalam/321390 (Abstract of a research paper)
  • https://invezz.com/exchange/best-crypto-exchange/brunei-darussalam/
  • https://ueex.com/en/blog/best-crypto-exchanges-in-brunei-darussalam-2025-2/
  • https://www.researchgate.net/publication/377317208_Public_Perception_of_Awareness_and_Adaptation_of_Cryptocurrency_in_Brunei_Darussalam (Research paper)

(Note: Some URLs for BDCB statements might be general and require navigation on the site. Primary legal texts would be found in official government publications.)

Web Sources (19)

Sources discovered via web search grounding

Search queries used (5)
  • Retail cryptocurrency trading status Brunei
  • Brunei cryptocurrency regulation
  • Brunei Darussalam Central Bank cryptocurrency
  • Brunei AML/CFT crypto
  • Legal status of Bitcoin in Brunei
Source

Source

Source

Source

Source

Source

Source

Source

Source

Source

Source

Source

Source

Source

Source

Source

Source

Source

Source

Reviews

No reviews yet

Submit Review

Challenge: Disagree with the analysis | Approval: Confirm it's correct | Refinement: Suggest improvements