Northern Mariana Islands

## Report: Retail_Trading_Status in Northern Mariana Islands

**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).

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### Retail_Trading_Status: Allowed-Regulated

**1. Current Status:** Allowed-Regulated

**2. Detailed Narrative Explanation:**

The Northern Mariana Islands (CNMI), as a commonwealth of the United States, is subject to U.S. federal laws and regulations. Therefore, the legal status of retail cryptocurrency trading in the CNMI is determined by the regulatory framework established at the federal level in the United States.

At the U.S. federal level, retail cryptocurrency trading (buying, selling, and holding) is legally permitted but is subject to a complex and evolving regulatory landscape. Various federal agencies have asserted jurisdiction over different aspects of cryptocurrency activities, imposing specific regulations, primarily concerning anti-money laundering (AML), countering the financing of terrorism (CFT), securities law, and commodities law.

*   **Financial Crimes Enforcement Network (FinCEN):** FinCEN, a bureau of the U.S. Department of the Treasury, plays a crucial role in regulating cryptocurrency intermediaries. FinCEN considers administrators or exchangers of virtual currencies as money services businesses (MSBs) under the Bank Secrecy Act (BSA). This designation requires them to register with FinCEN, implement robust AML/CFT programs (including Know Your Customer - KYC procedures), monitor and report suspicious transactions, and comply with other record-keeping and reporting requirements. These federal requirements apply to entities operating in or serving residents of U.S. territories, including the CNMI.

*   **Securities and Exchange Commission (SEC):** The SEC has asserted that many cryptocurrencies and initial coin offerings (ICOs) qualify as securities under the Howey Test. Consequently, entities involved in the offer, sale, or exchange of such crypto-assets must comply with U.S. securities laws. This includes registration requirements for exchanges and brokers, as well as disclosure obligations. The SEC has taken numerous enforcement actions against entities and individuals for violating securities laws in the context of cryptocurrencies.

*   **Commodity Futures Trading Commission (CFTC):** The CFTC has classified certain cryptocurrencies, notably Bitcoin, as commodities. As such, the CFTC has jurisdiction over derivatives contracts based on these cryptocurrencies (e.g., futures, swaps) and has also taken action against fraud and manipulation in the spot markets for crypto-commodities.

While there may not be specific cryptocurrency laws enacted at the local level within the Northern Mariana Islands, the overarching U.S. federal regulatory framework applies. This means that individuals in the CNMI can legally engage in cryptocurrency trading, but the platforms and intermediaries they use (if subject to U.S. jurisdiction) must adhere to federal AML/CFT, securities, and commodities regulations. General warnings issued by U.S. federal agencies regarding the risks associated with cryptocurrency investments also apply to residents of the CNMI.

The status is "Allowed-Regulated" because while individuals are permitted to trade, the activity is governed by a significant body of federal regulations aimed at preventing illicit financial activities and protecting investors, even if specific CNMI-level legislation on cryptocurrencies is not prominent. The regulatory environment is primarily dictated by U.S. federal actions.

**3. Specific, Relevant Text Excerpts:**

*   **FinCEN (regarding Money Services Businesses):**
    > "A person that provides money transmission services is a money transmitter and must register as an MSB. An administrator or exchanger of virtual currency is a money transmitter." (Source: FinCEN, "Application of FinCEN's Regulations to Persons Administering, Exchanging, or Using Virtual Currencies," FIN-2013-G001, March 18, 2013).
    > *This guidance clarifies that virtual currency exchanges and administrators are considered MSBs and are subject to BSA obligations, including AML/KYC requirements.*

*   **FinCEN (on AML/CFT obligations for MSBs):**
    > "MSBs have an obligation to establish and maintain an effective written AML program that is reasonably designed to prevent the MSB from being used to facilitate money laundering or the financing of terrorist activities." (Source: FinCEN, "Bank Secrecy Act Requirements: A Quick Reference Guide for Money Services Businesses").
    > *This outlines the core compliance expectation for entities, including crypto exchanges, operating as MSBs.*

*   **U.S. Government Accountability Office (GAO) on the applicability of federal laws to U.S. territories (general principle):**
    > While not specific to crypto, the general principle is that "Federal laws and regulations generally apply to U.S. territories such as the CNMI, unless specifically excluded." (This is a general understanding of U.S. territorial law, specific citations for this broad principle can be found in various GAO reports and legal analyses concerning U.S. territories).
    > *This supports the assertion that federal financial regulations, including those related to cryptocurrencies, extend to the CNMI.*

*   **SEC Chairman Gary Gensler (on securities laws and crypto):**
    > "Make no mistake: If a crypto token is a security, then crypto intermediaries trading in those tokens or advising on those tokens or lending those tokens have to register with us in some capacity." (Source: SEC, "Remarks Before the Aspen Security Forum," August 3, 2021, by Gary Gensler).
    > *This highlights the SEC's stance on many cryptocurrencies being securities and the associated regulatory obligations for intermediaries, which would apply to services accessible in the CNMI.*

**4. Direct, Accessible URL Links to Sources:**

*   **FinCEN - Application of FinCEN's Regulations to Persons Administering, Exchanging, or Using Virtual Currencies (FIN-2013-G001):** [https://www.fincen.gov/sites/default/files/shared/FIN-2013-G001.pdf](https://www.fincen.gov/sites/default/files/shared/FIN-2013-G001.pdf)
*   **FinCEN - Bank Secrecy Act Requirements: A Quick Reference Guide for Money Services Businesses:** While a direct link to a single "Quick Reference Guide" can vary, the core requirements are detailed on FinCEN's website for MSBs: [https://www.fincen.gov/money-services-businesses](https://www.fincen.gov/money-services-businesses)
*   **SEC - Remarks Before the Aspen Security Forum by Gary Gensler (August 3, 2021):** [https://www.sec.gov/news/speech/gensler-aspen-security-forum-2021-08-03](https://www.sec.gov/news/speech/gensler-aspen-security-forum-2021-08-03)
*   **General information on U.S. Territories and applicability of federal law (example from a government source discussing territories):** [https://www.doi.gov/oia/islands/cnmi](https://www.doi.gov/oia/islands/cnmi) (This link provides general information about CNMI's relationship with the U.S. The applicability of federal law is a fundamental aspect of this relationship, though this specific page might not detail financial regulations.)

It is important to note that while federal regulations provide a framework, the enforcement and specific interpretation can evolve. Residents of the CNMI engaging in cryptocurrency trading should stay informed about pronouncements from U.S. federal regulatory agencies. There is no indication of local CNMI laws that would override or contradict these U.S. federal regulations concerning cryptocurrency.