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Equatorial Guinea

Retail_Trading_Status

Allowed-Unregulated Unknown
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Status Changed

Previous status: Unclear

The primary difference between the two analyses lies in the overall status assigned to retail cryptocurrency trading in Equatorial Guinea: the previous analysis concluded with "Unclear," while the new analysis identifies it as a "Gray-Zone." This change reflects a more nuanced interpretation of the existing regulatory landscape and the practical realities for individuals, rather than a fundamental shift in the underlying factual basis regarding regulations. Justification for the differences in analysis results and status: 1. Refinement of Terminology and Interpretation: The previous status "Unclear" suggested a significant lack of information or clarity, potentially implying that the regulatory stance was largely unknown or undefined. While it correctly identified the absence of specific national legislation and the influence of regional bodies, the term "Unclear" might not fully capture the dynamics at play. The new status "Gray-Zone" is a more precise descriptor. A gray zone in regulatory terms typically means that while an activity is not explicitly illegal for individuals, it is not explicitly legal or regulated either, and often faces significant restrictions through other means (like banking prohibitions) or operates in an environment of official disapproval or caution. This better reflects the situation in Equatorial Guinea where: * Individuals are not directly prohibited by national law from trading or holding cryptocurrencies. * However, regional regulations (COBAC Decision D-2022/071) effectively ban regulated financial institutions from participating in or facilitating cryptocurrency transactions. This severely limits access to formal on-ramps and off-ramps. * Regional bodies like COSUMAF have issued warnings, indicating a cautious and restrictive official stance, even if a nascent VASP framework exists regionally. * Activity, if it occurs, likely happens through P2P channels or offshore platforms, operating outside the formal, regulated domestic financial system and without specific investor protections. 2. Emphasis on the Dichotomy of Individual vs. Institutional Stance: The new analysis more clearly articulates the distinction: while financial institutions are explicitly prohibited by COBAC from dealing with cryptocurrencies, there is no such direct, explicit national prohibition on individuals themselves. The "Gray-Zone" status better encapsulates this scenario where individual activity might persist in the absence of a direct ban, despite the severe limitations imposed on the financial ecosystem they would typically rely on. The previous report acknowledged this but the "Unclear" status didn't highlight this specific tension as effectively. 3. Incorporation of Nuance from FATF Reporting: The new analysis includes a reference to the FATF Mutual Evaluation Report. This report's interpretation of the COBAC decision (requiring institutions to identify and report crypto-related transactions) subtly implies an acknowledgement by regulators that such transactions might still be attempted or occur, even if they are discouraged and now subject to reporting. This detail supports the "Gray-Zone" characterization – activity isn't entirely stamped out but is pushed into areas of higher risk and scrutiny, or outside formal channels. The previous report did not incorporate this specific nuance from the FATF. 4. Focus on Practical Reality for Individuals: "Gray-Zone" better conveys the practical situation for an individual trader. They are not breaking a specific Equatoguinean law by owning crypto, but they face significant obstacles, operate without clear legal protections or regulatory oversight for their crypto activities, and are implicitly discouraged by the broader regional regulatory environment. The previous report's "highly ambiguous and restrictive environment" aligns with this, but "Gray-Zone" is a more standard regulatory term to describe such a state. In summary, the change from "Unclear" to "Gray-Zone" is not due to a major shift in the known regulations themselves (as both reports cite the crucial COBAC decision and the lack of national laws). Instead, it represents a more refined analytical judgment. The "Gray-Zone" status more accurately reflects the complex interplay where individual activity is not explicitly outlawed at the national level but is significantly constrained and operates in a risky, unregulated space due to strong regional prohibitions on financial intermediaries and a general official caution. The new analysis leverages a slightly broader set of interpretative sources (like the FATF perspective) to arrive at this more precise classification.

Analysis ID
#468
Version
Latest
Created
2025-06-26 13:11
Workflow Stage
Live

Executive Summary

As of June 2025, retail cryptocurrency trading in Equatorial Guinea is neither explicitly legal nor illegal, but operates within an unregulated environment. The nation has not enacted any specific legislation or formal legal definitions for cryptocurrencies or Virtual Asset Service Providers (VASPs). While there are no penalties or governmental enforcement actions against individuals engaging in crypto-related activities, the Central Bank and other financial authorities have not issued any crypto-specific guidance for the broader market. Furthermore, the Banking Commission of Central Africa (COBAC), which oversees financial institutions in the CEMAC Zone (including Equatorial Guinea), has prohibited regulated financial institutions from facilitating cryptocurrency transactions. Taxation on cryptocurrency is currently non-existent due to the lack of recognition and specific regulations.

Key Pillars

  • Absence of Specific Crypto Legislation: There are no dedicated laws governing the issuance, trading, or use of cryptocurrencies.

  • Lack of Formal Definitions: Cryptocurrencies do not possess a formal legal definition, nor are Virtual Asset Service Providers (VASPs) specifically defined or regulated under national law.

  • Central Bank and Financial Authority Stance: While not issuing direct guidance for the public on crypto usage, the regional financial regulator (COBAC) has taken a prohibitive stance against regulated financial institutions engaging in crypto activities. This effectively restricts traditional banking sector involvement with digital assets.

  • No Enforcement or Penalties: Engaging in cryptocurrency activities by individuals is not considered illegal and is not subject to penalties or enforcement from the government or the central bank.

Landmark Laws

Law No. 1/2024 (New Tax Law)
- Authority: Equatorial Guinea Government
- Date: November 19, 2024
- Summary: This law aims to modernize the nation's general tax system and improve revenue collection. While it updates corporate and personal income tax rates, it does not introduce any specific taxation or classification for cryptocurrencies.

COBAC Decision D-2022-071
- Authority: Banking Commission of Central Africa (COBAC)
- Date: May 6, 2022
- Summary: This decision prohibits institutions under its mandate from directly or indirectly engaging in transactions related to cryptocurrencies or crypto assets. This impacts how regulated financial institutions in Equatorial Guinea can interact with crypto, but does not render individual retail trading illegal.

Considerations

  • Asset Classification: Cryptocurrencies do not have a formal legal definition or classification in Equatorial Guinea. They are not recognized as legal tender; the Central African Franc remains the accepted currency.

  • Taxation: As of June 2025, cryptocurrency taxation in Equatorial Guinea is non-existent. The country has not imposed tax regulations on digital currencies because it does not formally recognize them. This means that individuals engaging in crypto activities generally do not face specific tax obligations related to their crypto holdings or transactions.

  • Virtual Asset Service Providers (VASPs): There is no specific national legislation for VASPs in Equatorial Guinea. While the CEMAC zone has updated its financial market regulation to include Virtual Asset Services as a type of financial service requiring accreditation, specific national implementation details for VASPs operating in Equatorial Guinea remain absent from local guidance.

  • Banking Sector Restrictions: Regulated financial institutions within Equatorial Guinea are prohibited from holding, using, exchanging, converting, or valuing cryptocurrencies, as per the COBAC decision. This means individuals must typically rely on international exchanges or peer-to-peer methods for retail crypto trading.

Notes

  • There are no known government proposals or official pilot programs concerning cryptocurrency regulation or adoption in Equatorial Guinea as of June 2025. The focus of financial authorities within the CEMAC region, including Equatorial Guinea, has been on maintaining financial stability and addressing potential risks associated with unregulated crypto assets, rather than promoting their integration into the formal financial system. This conservative approach is consistent with broader regional efforts to understand and respond to the rapidly evolving crypto landscape, particularly concerning Anti-Money Laundering (AML) and Counter-Terrorist Financing (CFT) measures, where global bodies like the FATF continue to emphasize the need for stronger action and compliance.

Detailed Explanation

Equatorial Guinea's stance on retail cryptocurrency trading as of June 2025 is best described as "Allowed-Unregulated." This classification stems from the complete absence of dedicated national laws or a formal regulatory framework for digital assets. Cryptocurrencies are not recognized as legal tender in the country; the Central African Franc (CFA franc) is the official currency. Despite this, engaging in cryptocurrency-related activities, such as buying, selling, or holding digital assets, is not explicitly prohibited and carries no penalties or enforcement actions from the government or the Central Bank of Equatorial Guinea. This "gray-zone" status has allowed individuals to participate in the global crypto market, often through international exchanges. A crucial aspect of the regulatory environment is the position taken by the Banking Commission of Central Africa (COBAC), the regional financial regulator for the CEMAC Zone, to which Equatorial Guinea belongs. In May 2022, COBAC issued a decision explicitly prohibiting regulated financial institutions, including banks, microfinance institutions, and payment service providers, from facilitating any form of cryptocurrency transactions. This directive aims to safeguard financial stability and protect customer deposits within the CEMAC region, citing existing regulatory provisions that do not authorize the holding and utilization of cryptocurrencies by these institutions. Consequently, while individuals are not forbidden from trading crypto, they cannot leverage traditional banking channels within Equatorial Guinea for such activities. Furthermore, the absence of specific legislation extends to the definition and regulation of Virtual Asset Service Providers (VASPs). There are no national laws outlining requirements for entities that offer crypto-related services like exchanges or custodial solutions. Although the CEMAC zone updated its financial market regulation in December 2022 to introduce "Virtual Asset Service Providers" as a new category of market intermediaries that must be accredited, the practical implementation and specific national guidance for such entities within Equatorial Guinea's domestic market remain undefined. From a taxation perspective, Equatorial Guinea currently imposes no specific taxes on cryptocurrencies. This is a direct consequence of the lack of formal recognition of digital currencies within the country's legal and financial frameworks. While a new Tax Code, Law No. 1/2024, was enacted in November 2024 to modernize the general tax system, it does not include any provisions related to cryptocurrency taxation. Therefore, individuals engaging in retail crypto trading are not subject to dedicated crypto tax laws. The overall regulatory approach in Equatorial Guinea reflects a cautious, hands-off stance, neither endorsing nor criminalizing retail crypto activities, but maintaining a clear separation between digital assets and the traditional financial system.

Summary Points

Here is the detailed regulatory analysis report on Retail Crypto Trading in Equatorial Guinea, converted into a clear, well-structured bullet point format:

## Equatorial Guinea: Retail Crypto Trading Regulatory Analysis (As of June 2025)

### I. Regulatory Status of Retail Crypto Trading

  • Overall Status: Allowed-Unregulated
  • Retail cryptocurrency trading is neither explicitly legal nor illegal.
  • Operates within an unregulated environment.
  • No specific national legislation or formal legal definitions for cryptocurrencies or Virtual Asset Service Providers (VASPs).
  • No penalties or governmental enforcement actions against individuals engaging in crypto-related activities.
  • Cryptocurrencies are not recognized as legal tender; the Central African Franc (CFA franc) is the official currency.

### II. Key Regulatory Bodies and Their Roles

  • Central Bank of Equatorial Guinea:
  • Has not issued crypto-specific guidance for the broader market or public.
  • Does not enforce penalties against individuals for crypto activities.
  • Banking Commission of Central Africa (COBAC):
  • Regional financial regulator for the CEMAC Zone (including Equatorial Guinea).
  • Has prohibited regulated financial institutions under its mandate from facilitating cryptocurrency transactions.
  • Government of Equatorial Guinea:
  • No specific enforcement or penalties for individuals engaging in crypto activities.

### III. Important Legislation and Regulations

  • Absence of Specific Crypto Legislation:
  • No dedicated national laws governing the issuance, trading, or use of cryptocurrencies.
  • No formal legal definition for cryptocurrencies or VASPs under national law.
  • Law No. 1/2024 (New Tax Law):
  • Effective November 19, 2024.
  • Modernizes the nation's general tax system.
  • Does not introduce any specific taxation or classification for cryptocurrencies.
  • COBAC Decision D-2022-071 (May 6, 2022):
  • Issued by the Banking Commission of Central Africa (COBAC).
  • Prohibits institutions under COBAC's mandate (e.g., banks, microfinance institutions, payment service providers) from directly or indirectly engaging in transactions related to cryptocurrencies or crypto assets.
  • Impacts how regulated financial institutions in Equatorial Guinea can interact with crypto, but does not render individual retail trading illegal.

### IV. Requirements for Compliance

  • For Individuals:
  • No specific compliance requirements due to the unregulated status.
  • Individuals typically rely on international exchanges or peer-to-peer methods.
  • For Regulated Financial Institutions:
  • Strictly prohibited from engaging in any cryptocurrency activities (holding, using, exchanging, converting, valuing) as per COBAC Decision D-2022-071.
  • For Virtual Asset Service Providers (VASPs):
  • No specific national legislation for VASPs in Equatorial Guinea.
  • While the CEMAC zone has updated its financial market regulation (December 2022) to include Virtual Asset Services as a type of financial service requiring accreditation, specific national implementation details for VASPs operating in Equatorial Guinea remain absent from local guidance.

### V. Notable Restrictions or Limitations

  • Banking Sector Restrictions:
  • Regulated financial institutions are prohibited from interacting with cryptocurrencies.
  • This means individuals cannot use traditional banking channels within Equatorial Guinea for crypto-related activities.
  • Asset Classification:
  • Cryptocurrencies do not have a formal legal definition or classification.
  • Not recognized as legal tender.
  • Taxation:
  • As of June 2025, cryptocurrency taxation is non-existent.
  • No specific tax regulations imposed on digital currencies due to lack of formal recognition.
  • Individuals generally do not face specific tax obligations related to crypto holdings or transactions.

### VI. Recent Developments or Changes

  • New Tax Law (Law No. 1/2024): Enacted November 2024, but without crypto-specific provisions.
  • CEMAC Zone VASP Regulation Update (December 2022): Introduced VASPs as a category requiring accreditation, but national implementation in Equatorial Guinea is still undefined.
  • No Government Proposals or Pilot Programs: As of June 2025, there are no known official initiatives concerning cryptocurrency regulation or adoption.
  • Conservative Approach: Financial authorities in the CEMAC region (including Equatorial Guinea) prioritize financial stability and addressing potential risks (e.g., AML/CFT) over promoting crypto integration into the formal financial system.

Full Analysis Report

Report on the Current Status of Retail Cryptocurrency Trading in Equatorial Guinea

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).

1. Identified Status:

Gray-Zone

2. Detailed Narrative Explanation:

Equatorial Guinea is a member of the Economic and Monetary Community of Central Africa (CEMAC). The regional banking regulator for the CEMAC zone is the Central African Banking Commission (COBAC), and the regional central bank is the Bank of Central African States (BEAC). These regional bodies play a significant role in shaping the financial regulatory landscape of member states, including Equatorial Guinea.

There is no specific national legislation in Equatorial Guinea that explicitly permits or prohibits retail cryptocurrency trading for individuals. However, the actions and directives from regional bodies significantly impact the environment.

In May 2022, COBAC issued Decision D-2022/071, which prohibits institutions under its mandate (banks, microfinance institutions, payment service providers, and exchange offices) from holding, using, exchanging, or converting cryptocurrencies or crypto-assets, either for themselves or on behalf of third parties. This decision also mandates these institutions to implement internal controls to detect cryptocurrency-related transactions and report them to COBAC and BEAC. This effectively restricts the ability of individuals to interact with cryptocurrencies through regulated financial institutions within the CEMAC zone.

While financial institutions are banned from dealing with cryptocurrencies, the direct legal status for individuals engaging in peer-to-peer (P2P) transactions or using offshore platforms remains less explicitly defined at a national level in Equatorial Guinea. Some sources indicate that there is no specific cryptocurrency regulation or legal status for cryptocurrencies in Equatorial Guinea itself.

The Financial Market Supervisory Commission of CEMAC (COSUMAF) has also issued warnings about unregulated crypto-asset offerings in the CEMAC region, highlighting the lack of a legal framework to protect investors and prohibiting the public offering of crypto-assets.

Despite these regional restrictions on financial institutions and warnings, some international cryptocurrency exchanges list Equatorial Guinea as a country where their services are accessible. This suggests that individuals might still be able to access and trade cryptocurrencies through platforms operating outside the direct regulatory purview of COBAC, though this would be at their own risk given the regional stance.

The BEAC has also been encouraged by its board members to explore the issuance of a common digital currency for the six CEMAC nations, which could indicate a future, more structured approach to digital assets in the region, though this is distinct from private cryptocurrencies.

The overall situation is a "Gray-Zone" because:
* There is no explicit national law in Equatorial Guinea directly banning individuals from buying, selling, or holding cryptocurrencies.
* However, regional regulations (COBAC Decision D-2022/071) prohibit financial institutions within Equatorial Guinea (and the broader CEMAC zone) from engaging in cryptocurrency transactions. This significantly hinders access to and the use of cryptocurrencies through formal financial channels.
* Warnings from regional bodies like COSUMAF advise against unregulated crypto offerings, indicating a generally cautious and restrictive official stance.
* Individuals may still access cryptocurrencies through offshore platforms or P2P means, but this occurs in an environment without specific national investor protection or clear regulatory guidelines for such activities.
* The FATF's mutual evaluation report from November 2023 (though dated in the search result as 2024, the content refers to COBAC's 2022 decision) notes that the COBAC decision merely requires institutions to identify and report crypto-related transactions, implying that such transactions might still occur, albeit with monitoring.

This complex interplay of regional prohibitions on financial institutions, lack of specific national legislation for individuals, and the potential for individuals to access offshore services creates an ambiguous and risky environment, fitting the definition of a "Gray-Zone."

3. Specific, Relevant Text Excerpts:

  • Proelium Law LLP: "Equatorial Guinea. Undecided. No legal status for cryptocurrencies. There is no cryptocurrency regulation."
  • World Bank Document (2023, referencing COBAC 2022): "In May 2022, COBAC adopted the Decision on the holding, use, exchange and conversion of cryptocurrencies or crypto assets by institutions subject to the COBAC47. The COBAC prohibits institutions under its mandate from directly or indirectly engaging in transactions related to cryptocurrencies. The decision also prohibits them from accounting in cryptocurrencies or treating them as assets or liabilities and obliges them to implement internal control measures to detect cryptocurrency-related transactions and inform the COBAC and the BEAC (COBAC, 2022)." (Footnote 47 refers to: Decision COBAC D-2022 -071 of May 6, 2022, relating to the holding, use, exchange and conversion of cryptocurrencies or crypto assets by institutions subject to COBAC.)
  • LEX Africa (referencing D. Moukouri and Partners, regarding COBAC Decision D-2022/071): "In essence it ruled that banks, microfinance institutions, payment institutions, exchange offices, and their technical partners in the CEMAC are prohibited from using crypto-assets, including the subscription or holding of crypto-currencies of any kind for their own account or for the account of third parties." (This quote is a summary of the COBAC decision as reported by LEX Africa).
  • 4m legal and tax (November 30, 2023, regarding COBAC Decision D-2022/071): "The Financial Market Regulator of CEMAC Member States (Cameroon, Chad, Central African Republic, Equatorial Guinea, Guinea, Gabon, and Congo Brazzaville) has prohibited Banks, Microfinance Institutions, and Payment Service Providers from facilitating transactions in cryptocurrency. The following key points should be noted from the decision: Prohibition on Holding and Subscribing to Cryptocurrencies: Reporting institutions (banks, microfinance institutions, and payment service providers) and their technical partners are not authorized to subscribe to or hold cryptocurrencies or virtual currencies of any kind for themselves or on behalf of third parties. Prohibition on Cryptocurrency-Related Transactions: Reporting institutions and their technical partners are prohibited from exchanging, converting, settling, or hedging in foreign currency or CFA francs transactions related to cryptocurrencies or having a link with them."
  • 4m legal and tax (November 30, 2023, regarding COSUMAF warning): "The Financial Market Supervisory Commission of CEMAC Member States (Cameroon, Chad, Central African Republic, Equatorial Guinea, Gabon, and Congo Brazzaville), COSUMAF, has issued a public warning regarding cryptoasset offerings within the CEMAC region. The following key points should be noted from the warning: 🔸Unregulated Cryptoasset Offerings: Cryptoasset offerings are not currently regulated within the CEMAC region. This means that there is no legal framework in place to protect investors and ensure that cryptoasset offerings are conducted in a fair and transparent manner. 🔸Prohibition on Public Cryptoasset Offerings: Digital asset providers are prohibited from offering cryptoassets to the public within the CEMAC region. This includes advertising, marketing, or otherwise promoting cryptoasset offerings to the public."
  • FATF (Mutual Evaluation Report on Equatorial Guinea, November 2023, but search result shows Nov 22, 2024): "conversion of crypto-currencies or crypto-assets by institutions subject to COBAC merely requires them to identify transactions carried out or rejected in connection with crypto- currencies (originators, beneficiaries, amounts, legal currency of transaction, crypto- currency equivalents, purpose of transaction, etc.). ) and to provide the Secretariat General of COBAC and BEAC with a detailed statement of these transactions on a monthly basis."

4. Direct, Accessible URL Links to Sources:

  • Proelium Law LLP - Cryptocurrency Regulation Tracker: https://www.proeliumlaw.com/crypto-regulation-tracker (Note: While the main page is linked, specific country information might require navigation or internal search. The provided text is a direct quote from their list regarding Equatorial Guinea.)
  • World Bank Document - Equatorial Guinea Digital Economy Diagnostic (2023): https://documents.worldbank.org/en/publication/documents-reports/documentdetail/099300006272322047/p1773430c72c570a509099081e915dfa68e (The specific information is on page 102 of the PDF, which corresponds to page 107 of the document viewer on the World Bank site if using the direct link to the document details page. The search result provided a more direct snippet link.)
  • LEX Africa - Digital currencies and services gaining momentum across the continent: https://www.lexafrica.com/digital-currencies-and-services-gaining-momentum-across-the-continent/
  • UEEx Technology - Best Crypto Exchanges in Equatorial Guinea in 2025: https://www.ueex.com/en/learn/best-crypto-exchanges-in-equatorial-guinea/ (This is a secondary source indicating accessibility of exchanges but should be viewed in light of primary regulatory information.)
  • 4m legal and tax - Virtual Assets Regulation Within The CEMAC Zone: https://4mtaxlegal.com/virtual-assets-regulation-within-the-cemac-zone/
  • 4m legal and tax - CEMAC Cryptocurrency Regulations: Updates & Impacts: https://4mtaxlegal.com/cemac-cryptocurrency-regulations-updates-impacts/
  • Bitget Guide - How to buy Bitcoin(BTC) in Equatorial Guinea: https://www.bitget.com/en/buy-crypto/how-to-buy-bitcoin-in-equatorial-guinea (This is a secondary source from an exchange, indicating service availability.)
  • FATF - Anti-money laundering and counter-terrorist financing measures Equatorial Guinea - Mutual Evaluation Report (November 2023, though search result metadata may vary): The direct link to the PDF is usually found on the FATF website's country mutual evaluations page. A general link is: https://www.fatf-gafi.org/en/countries/detail/Equatorial-Guinea.html (Users would need to navigate to the specific report). The search snippet provided a direct text excerpt.
  • CoinGeek - Central Africa’s regional bank urged to issue a common digital currency for its members: report: https://coingeek.com/central-africas-regional-bank-urged-to-issue-a-common-digital-currency-for-its-members-report/
  • Charles Telfair Centre - Central Bank Digital Currencies: A potential solution for reducing transactions costs in Africa and increasing trade: https://charlestelfaircentre.com/central-bank-digital-currencies-a-potential-solution-for-reducing-transactions-costs-in-africa-and-increasing-trade/
  • Bitget Guide - How to buy Bitget Token(BGB) in Equatorial Guinea: https://www.bitget.com/en/buy-crypto/how-to-buy-bitget-token-in-equatorial-guinea (Secondary source from an exchange.)
  • Invezz - 7 Best Exchanges to Buy Bitcoin in Equatorial Guinea 2025: https://invezz.com/exchange/best-crypto-exchanges-equatorial-guinea/ (Secondary source, review site.)
  • Bitget Guide - How to buy Over(OVR) in Equatorial Guinea: https://www.bitget.com/en/buy-crypto/how-to-buy-over-in-equatorial-guinea (Secondary source from an exchange.)

Web Sources (13)

Sources discovered via web search grounding

Search queries used (6)
  • Retail cryptocurrency trading status Equatorial Guinea
  • Equatorial Guinea cryptocurrency regulation
  • Is cryptocurrency legal in Equatorial Guinea?
  • Equatorial Guinea central bank cryptocurrency
  • BEAC cryptocurrency regulation Equatorial Guinea
  • COBAC cryptocurrency regulation Equatorial Guinea
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