Guam

## Retail Trading Status in Guam: Cryptocurrencies

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

### Retail_Trading_Status

**Status:** Allowed-Regulated

**Narrative Explanation:**

Guam, as an unincorporated territory of the United States, is subject to U.S. federal laws and regulations. Therefore, the legal status of retail cryptocurrency trading in Guam mirrors that of the United States. At the federal level, cryptocurrencies are not banned for individuals to buy, sell, and hold. However, various U.S. regulatory bodies have asserted jurisdiction over different aspects of cryptocurrency activities, leading to a complex regulatory environment.

Key U.S. federal agencies involved in overseeing the cryptocurrency space include:

*   **The Financial Crimes Enforcement Network (FinCEN):** FinCEN considers cryptocurrency exchanges and administrators as money services businesses (MSBs) under the Bank Secrecy Act (BSA). This designation requires them to implement Anti-Money Laundering (AML) and Counter-Financing of Terrorism (CFT) programs, which include Know Your Customer (KYC) procedures, record-keeping, and reporting suspicious activities. These requirements apply to platforms serving Guam residents.
*   **The Securities and Exchange Commission (SEC):** The SEC has asserted that many cryptocurrencies and initial coin offerings (ICOs) qualify as securities. As such, entities dealing in these digital assets must comply with U.S. securities laws, including registration requirements for exchanges and brokers, and disclosure obligations for issuers. The SEC has taken numerous enforcement actions against non-compliant entities.
*   **The Commodity Futures Trading Commission (CFTC):** The CFTC generally views virtual currencies like Bitcoin as commodities. It has jurisdiction over derivatives contracts based on cryptocurrencies, such as futures and swaps, and also polices manipulative conduct in the spot markets for commodities, including cryptocurrencies.

While Guam may not have its own specific, separate cryptocurrency regulatory framework distinct from federal U.S. law, the existing federal regulations apply. This means that individuals in Guam are permitted to trade cryptocurrencies, but the platforms they use, especially those operating within the U.S. or serving U.S. persons (including residents of Guam), are subject to a range of federal regulations, primarily concerning AML/CFT and investor protection.

There have been discussions and efforts within Guam to potentially foster a local fintech and blockchain industry, including considerations around digital assets. However, these initiatives would still operate within the broader U.S. federal regulatory context. For instance, the Guam Department of Revenue and Taxation would likely follow IRS guidance on the taxation of cryptocurrency transactions, as the IRS considers virtual currency as property for federal tax purposes.

**Relevant Text Excerpts and Sources:**

*   **Applicability of U.S. Federal Law:** As a U.S. territory, Guam is generally subject to federal law. The official website of the District Court of Guam states: "Guam is an unincorporated territory of the United States." This establishes the overarching legal framework.
    *   **Source:** District Court of Guam - [https://www.gud.uscourts.gov/](https://www.gud.uscourts.gov/) (General information, specific text confirming applicability of federal law is a foundational aspect of U.S. territorial law).

*   **FinCEN's Regulation of Virtual Currency:** FinCEN has issued guidance clarifying that administrators or exchangers of virtual currencies are considered money transmitters and therefore fall under the definition of a money services business (MSB).
    *   **Excerpt (Summary):** "A person (including a business) that provides money transmission services is a money transmitter and must register with FinCEN as a money services business (MSB)... An administrator or exchanger of virtual currency is a money transmitter." (Paraphrased from general FinCEN guidance on virtual currencies).
    *   **Source:** FinCEN - Application of FinCEN's Regulations to Persons Administering, Exchanging, or Using Virtual Currencies (FIN-2013-G001). While a specific link to this older guidance might change, current FinCEN regulations for MSBs reflect this stance. A more general link to FinCEN's resources on virtual currency is: [https://www.fincen.gov/virtual-currency](https://www.fincen.gov/virtual-currency)

*   **SEC's Stance on Digital Assets as Securities:** The SEC has consistently stated that many digital assets, particularly those offered through ICOs, are securities under the Howey Test.
    *   **Excerpt (Summary):** SEC Chairman Gary Gensler has repeatedly emphasized that many crypto tokens are investment contracts under existing securities laws. Platforms offering these tokens must register with the SEC. (General summary of numerous public statements and enforcement actions).
    *   **Source:** U.S. Securities and Exchange Commission - Public Statements and Releases (e.g., speeches by Chairman Gensler available on [https://www.sec.gov](https://www.sec.gov)). For example, "Statement on Cryptocurrencies and Initial Coin Offerings" (various dates and iterations).

*   **CFTC's View of Virtual Currencies as Commodities:** The CFTC has declared virtual currencies like Bitcoin to be commodities.
    *   **Excerpt (Summary):** "The CFTC’s jurisdiction is implicated when a virtual currency is used in a derivatives contract, such as a futures contract, or if there is fraud or manipulation involving a virtual currency traded in interstate commerce." (Paraphrased from CFTC guidance and fact sheets).
    *   **Source:** U.S. Commodity Futures Trading Commission - Primers and Guidance on Virtual Currencies (e.g., "Customer Advisory: Understand the Risks of Virtual Currency Trading" available on [https://www.cftc.gov](https://www.cftc.gov)).

*   **IRS Taxation of Virtual Currency:** The IRS treats virtual currency as property for federal tax purposes.
    *   **Excerpt:** "The IRS recognizes that virtual currency may be used to pay for goods or services, or held for investment. Virtual currency is treated as property for Federal income tax purposes and general tax principles applicable to property transactions apply to transactions using virtual currency."
    *   **Source:** Internal Revenue Service - Notice 2014-21 and subsequent guidance like "Frequently Asked Questions on Virtual Currency Transactions" available on [https://www.irs.gov/individuals/international-taxpayers/frequently-asked-questions-on-virtual-currency-transactions](https://www.irs.gov/individuals/international-taxpayers/frequently-asked-questions-on-virtual-currency-transactions)

While specific legislation or regulatory statements originating *from within Guam's local government* specifically detailing a separate cryptocurrency trading framework are not readily apparent, the overarching U.S. federal regulations create a regulated environment for such activities. Therefore, retail trading is allowed but subject to these federal rules, making "Allowed-Regulated" the most accurate status. Residents of Guam engaging in cryptocurrency trading should be aware of these federal requirements, particularly regarding KYC/AML on platforms and tax obligations.