Tokelau

**Report on the Current Status of Retail Cryptocurrency Trading in Tokelau**

**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 Current Status:** Unclear

**2. Detailed Narrative Explanation:**

Tokelau is a non-self-governing territory of New Zealand. Its small size, limited economic base, and unique political status mean that its financial regulatory landscape is not as extensively documented as that of independent nations. There is no specific legislation or regulation issued directly by the Government of Tokelau that explicitly permits, bans, or regulates the buying, selling, or holding of cryptocurrencies by retail users.

The legal system in Tokelau is based on the Tokelau Act 1948 and its amendments. While New Zealand law does not automatically apply to Tokelau unless expressly extended, New Zealand does assist Tokelau in various governmental functions. In practice, New Zealand legislation is not extended to Tokelau without the consent of the Tokelau people. The villages in Tokelau have the statutory power to enact their own laws covering village affairs.

Given Tokelau's reliance on New Zealand for certain aspects of its governance and its limited financial sector, any complex financial regulations, such as those for cryptocurrencies, would likely involve or be heavily influenced by New Zealand. New Zealand itself does not have specific legislation solely for cryptocurrencies, though existing financial laws apply. The New Zealand Financial Markets Authority (FMA) treats cryptocurrency exchanges, brokers, wallet providers, and ICOs as financial services, requiring them to register on the Financial Service Providers Register (FSPR) and comply with laws like the Financial Markets Conduct Act 2013 and the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 (AML/CFT Act).

However, there is no indication that these New Zealand-specific FMA regulations or registration requirements are directly enforced or applicable within Tokelau for its residents engaging in retail crypto trading, nor is there evidence of Tokelau establishing its own parallel regulatory framework for cryptocurrencies. The financial regulations in Tokelau, such as the Tokelau Islands Finance Regulations 1967, focus on the management of public funds and do not address modern digital assets like cryptocurrencies.

While general financial services regulation in Tokelau is influenced by New Zealand frameworks and aims to combat money laundering and financial fraud, specific rules for cryptocurrency trading by individuals are not apparent. Training courses on financial regulation and AML/CFT in Tokelau mention emerging technologies like digital currencies as a topic for legal implications and risk management, suggesting an awareness of the area but not necessarily established regulation.

The lack of specific mentions of cryptocurrency in Tokelau's laws or official government publications, combined with the absence of a dedicated financial regulatory authority in Tokelau that has issued statements on cryptocurrencies, leads to the status being "Unclear." It is not explicitly banned, nor is it explicitly allowed and regulated, or allowed and unregulated in a clearly defined manner. Individuals in Tokelau might be able to access international cryptocurrency platforms, but they would likely be doing so in an environment without specific local protections or regulations governing such activities. The applicability of New Zealand's crypto-asset policies or any AML/CFT measures specifically for crypto trading by Tokelauan residents is not established.

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

*   **Lawzana on Financial Services Regulation in Tokelau:** "As a New Zealand-administered territory, Tokelau's financial services regulation is influenced by both local norms and broader New Zealand regulatory frameworks. Tokelau's financial sector is limited, but it is evolving, requiring adherence to a combination of local mandates and international best practices to combat issues such as money laundering and financial fraud."
*   **Lawzana on Tokelau Government's Role:** "The Tokelau government is responsible for enforcing financial regulations that align with both local and international standards, ensuring ethical and stable financial practices." (Note: This is a general statement and does not specifically mention cryptocurrencies).
*   **Commonwealth Chamber of Commerce on Tokelau's Legal System:** "The legislation and judicial systems are based on the Tokelau Act, 1948, and its amendments. Unless it is expressly extended to Tokelau, New Zealand statute law does not apply to the territory. In practice, New Zealand legislation will not be extended to Tokelau without the consent of Tokelau people. The villages have the statutory power to enact their own laws covering village affairs."
*   **New Zealand Financial Markets Authority (FMA) on Cryptocurrency Regulation in New Zealand:** "Crypto is not specifically regulated in New Zealand and international laws and regulations vary widely from country to country." "If you want to buy, sell or trade cryptocurrencies, use platforms or other service providers that are registered on New Zealand's Financial Service Providers Register (FSPR)." (Note: This applies to New Zealand; its direct applicability or enforcement in Tokelau is unclear).
*   **Freeman Law on New Zealand Cryptocurrency Laws:** "No legislation exists specifically regulating cryptocurrencies in New Zealand, but contract and tax laws apply to cryptocurrency." "Additionally, cryptocurrencies are not legal tender in New Zealand, but cryptocurrency exchanges, brokers, wallet providers, and businesses offering ICOs and investment opportunities are regulated in New Zealand because they are treated as financial services by New Zealand's Financial Markets Authority (FMA)." (Note: Again, this outlines the New Zealand context).

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

*   Lawzana - Financial Services Regulation in Tokelau: https://www.lawzana.com/ws/financial-services-regulation/tokelau
*   Trainingcred Institute - Central Bank Legal Framework and Legislative Principles Course for Professionals in Tokelau: https://trainingcred.com/course/central-bank-legal-framework-and-legislative-principles-tokelau
*   New Zealand Legislation - Tokelau Islands Finance Regulations 1967: http://www.legislation.govt.nz/regulation/public/1967/0040/latest/DLM24809.html
*   New Zealand Legislation - Tokelau Finance Regulations 1967 (another version/page): https://www.legislation.govt.nz/regulation/public/1967/0040/latest/whole.html
*   Freeman Law - New Zealand and Cryptocurrency: https://freemanlaw.com/new-zealand-and-cryptocurrency/
*   New Zealand Legislation - Tokelau Islands Finance Regulations 1967 (Reprint as at 3 September 2007): https://www.legislation.govt.nz/regulation/public/1967/0040/latest/versions.aspx
*   Financial Markets Authority (New Zealand) - Cryptocurrencies: https://www.fma.govt.nz/investors/ways-to-invest/cryptocurrencies/
*   Commonwealth Chamber of Commerce - Tokelau: https://www.commonwealthchamber.com/tokelau/
*   Trainingcred Institute - Anti-Money Laundering and Combating the Financing of Terrorism in the Banking Sector Course for Professionals in Tokelau: https://trainingcred.com/course/anti-money-laundering-and-combating-the-financing-of-terrorism-in-the-banking-sector-tokelau
*   Cointelegraph - An overview of the cryptocurrency regulations in New Zealand: https://cointelegraph.com/learn/an-overview-of-the-cryptocurrency-regulations-in-new-zealand
*   Government of Tokelau - Reports: https://www.tokelau.org.nz/Reports+and+other+Documents.html