Back to Analyses

Guatemala

Retail_Trading_Status

Allowed-Unregulated Unknown
Edit

Status Changed

Previous status: Allowed-UnRegulated

The primary difference between the two analyses lies in the identified status of retail cryptocurrency trading in Guatemala and the underlying reasons for this status, driven by new developments occurring between the dates of the two reports. The previous analysis, dated April 12, 2025, correctly assessed the status as "Allowed-UnRegulated." This was based on the fact that while no laws explicitly prohibited Guatemalans from buying, selling, or holding cryptocurrencies, there was also no specific regulatory framework governing these activities. Regulatory bodies like the Banco de Guatemala (Banguat) and the Superintendencia de Bancos (SIB) had issued warnings about the risks, clarified that cryptocurrencies were not legal tender, and stated that crypto-related businesses were not under their direct supervision. Trading occurred at the user's own risk in an environment lacking specific consumer protections or licensing for crypto platforms. The new analysis, dated June 26, 2025, changes the status to "In-Progress." This change is justified by a significant legislative development that occurred after the first report: the introduction of Bill No. 6538, the "Cryptocurrency Law in Guatemala," before the Congress of the Republic on May 12, 2025. The justification for the differences is as follows: 1. **Introduction of Comprehensive Legislation:** The most crucial difference is the emergence of Bill No. 6538. The previous analysis noted a lack of specific legislation. The new analysis highlights that this gap is actively being addressed. This bill aims to create a formal regulatory framework, moving Guatemala from a purely unregulated environment towards a regulated one. 2. **Shift from Passive to Active Regulatory Stance:** While previously authorities primarily issued warnings and disclaimers, the introduction of Bill No. 6538 signifies an active effort by the legislature, with input from regulatory bodies like Banguat and SIB, to define rules for the crypto space. The new analysis cites ongoing discussions and analysis of the bill by these entities and the Tax Administration Superintendency (SAT). 3. **Proposed Regulatory Requirements:** The new analysis details specific provisions within the proposed bill that were absent in the previous regulatory landscape. These include: * Mandatory registration of crypto service providers with the SIB. * Implementation of KYC/AML measures, including reporting to the Special Verification Authority (IVE). * Requirements for transparency, cybersecurity, and user protection. * Clarification on the tax treatment of cryptocurrencies. * Acknowledgement of voluntary crypto use for payments with Quetzal equivalency. 4. **Change in Official Tone:** The new analysis includes more recent statements (June 2025) from the President of Banguat acknowledging the increasing volume of crypto transactions and the necessity for regulation to protect users and the economy. This indicates a more proactive stance compared to earlier statements (January 2025 and prior) that primarily emphasized crypto being outside the central bank's direct purview. 5. **Supporting International Context:** The new analysis incorporates the IMF's June 2025 recommendation for Guatemala to strengthen oversight of fintech and adopt a revised AML/CFT law, which aligns with the objectives of the proposed cryptocurrency bill. In essence, the "Allowed-UnRegulated" status of the first report was accurate for its time, reflecting a permissive but hands-off approach. The "In-Progress" status of the second report is justified because the introduction of Bill No. 6538 fundamentally changes the situation. While retail trading is still allowed (as it is not yet prohibited and the bill itself aims to regulate, not ban, its licit use), the regulatory environment is no longer static or simply absent; it is actively being constructed. The term "In-Progress" accurately captures this transitional phase where the legal framework is under development, moving towards a potentially regulated future for retail crypto trading in Guatemala. The core activity (retail trading) remains permissible, but the conditions and oversight under which it will operate are now subject to a formal legislative process.

Analysis ID
#538
Version
Latest
Created
2025-06-26 13:19
Workflow Stage
Live

Executive Summary

Retail trading of cryptocurrencies is allowed in Guatemala but operates in an unregulated environment, with no specific legislation prohibiting or regulating it. The primary regulator, Banco de Guatemala (Banguat), does not recognize cryptocurrencies as legal tender and views them as speculative investment assets, warning of associated risks. The Superintendencia de Bancos (SIB) does not supervise platforms engaged in the sale of virtual currencies. Without a specific legal framework, users engage with cryptocurrencies at their own risk, facing potential risks such as scams and fraud.

Key Pillars

  • Primary regulator: Banco de Guatemala (Banguat), which does not recognize cryptocurrencies as legal tender and warns of risks.
  • Core Compliance: Financial institutions interacting with crypto-related transactions are expected to apply standard risk management, AML/CFT procedures.
  • Licensing/Registration: There are no specific licensing or registration requirements for cryptocurrency exchanges or Virtual Asset Service Providers (VASPs).

Landmark Laws

N/A - There are no specific cryptocurrency-related laws or directives in Guatemala.

Considerations

  • Cryptocurrencies are viewed as speculative investment assets, not legal tender.
  • There is a lack of specific tax treatment guidance for cryptocurrencies.
  • Regulators warn of volatility, lack of backing, and potential for illicit use.
  • Users face operational challenges such as the absence of local bank support for crypto services and increased risks of scams due to reliance on international platforms.

Notes

  • Historical Context: There is no historical context provided in the report regarding past court rulings or specific regulatory actions.
  • Future Plans: Banguat is participating in studies regarding Central Bank Digital Currencies (CBDCs), but no active development is underway in Guatemala.
  • Disclaimers: The report is based on publicly available information up to April 12, 2025, and the regulatory landscape can change rapidly.
  • Practical Workarounds: Users often engage with cryptocurrencies through international exchanges, P2P platforms, or local fintech initiatives.

Detailed Explanation

Retail trading of cryptocurrencies in Guatemala is currently allowed but operates in an unregulated environment. No specific legislation either prohibits or formally permits and regulates cryptocurrency activities for individuals or businesses. This is based on the principle derived from Article 5 of the Constitution, which allows activities not expressly prohibited. The Banco de Guatemala (Banguat - Central Bank) has consistently stated that cryptocurrencies like Bitcoin are not legal tender. The only official currency is the Quetzal, and Banguat is the sole entity authorized to issue currency. Cryptocurrencies are not considered divisas (foreign currency), are not backed by the state, and cannot be legally enforced as a means of payment. Banguat views cryptocurrencies as speculative investment assets and warns about their volatility, lack of backing, and potential use in illicit activities. The central bank considers crypto-assets to be "outside the radar" of its functions but is participating in CBDC studies, although no active development is underway in Guatemala. The Superintendencia de Bancos (SIB - Superintendence of Banks) has stated that platforms or individuals solely engaged in the sale and commercialization of virtual currencies are not under its supervision. SIB warns that these platforms may lack adequate security standards and risk mitigation processes, potentially exposing users to significant risks, especially since many operate from international jurisdictions outside Guatemalan legal oversight. While the SIB doesn't regulate crypto exchanges directly, financial institutions under its supervision interacting with crypto-related transactions are expected to apply standard risk management, AML/CFT procedures. Guatemala lacks a specific legal or regulatory framework dedicated to cryptocurrencies or Virtual Asset Service Providers (VASPs). There are no specific licensing requirements, consumer protection rules, or market conduct regulations. While general laws, particularly AML/CFT laws, could theoretically apply, their specific application and enforcement concerning crypto activities remain unclear. Discussions about potential future regulations focusing on digital payments and e-wallets exist, but no concrete crypto-specific legislation has been enacted. Retail trading occurs through international exchanges, P2P platforms, or local fintech initiatives. Some businesses accept crypto, and crypto ATMs exist, primarily for converting crypto to Quetzales. Adoption faces challenges due to regulatory uncertainty, volatility concerns, limited digital literacy, and security risks. Users engage with cryptocurrencies entirely at their own risk, without specific regulatory protections. The official communiqué from the Superintendencia de Bancos (SIB), cited by Prensa Libre on February 19, 2021, and on the SIB website, confirms that virtual currencies are not legal tender and are not backed by the state. Álvaro González Ricci, President of Banguat, stated on January 22, 2025, that cryptocurrencies are not money but investment assets, placing them outside the central bank's purview. An article in Prensa Libre on November 26, 2024, emphasizes that individuals are responsible for their own actions when investing in cryptocurrency transactions. This lack of a specific legal framework also means that local banks do not offer services like cryptocurrency custody or savings accounts in digital assets, pushing users to international platforms and increasing the risk of scams and fraud.

Summary Points

Okay, here's the converted report in bullet point format:

Retail Cryptocurrency Trading Status in Guatemala (April 12, 2025)

Overall Status: Allowed - Unregulated

  • Retail trading of cryptocurrencies (buying, selling, holding) is permitted.
  • No specific legislation prohibits or regulates cryptocurrency activities for individuals.
  • Operates in an unregulated environment.

Key Regulatory Bodies and Their Roles:

  • Banco de Guatemala (Banguat - Central Bank):
    • Role: Issues official currency (Quetzal).
    • Position:
      • Cryptocurrencies are not legal tender.
      • Not considered foreign currency (divisas).
      • Not backed by the state.
      • Cannot be legally enforced as payment for goods/services.
      • Views cryptocurrencies as speculative investment assets.
      • Warns about volatility, lack of backing, and potential for illicit use.
      • Crypto-assets are "outside the radar" of its functions.
      • Participating in studies regarding Central Bank Digital Currencies (CBDCs), but no active development in Guatemala.
  • Superintendencia de Bancos (SIB - Superintendence of Banks):
    • Role: Supervises and inspects financial institutions.
    • Position:
      • Platforms/individuals solely selling/commercializing virtual currencies are not under its supervision.
      • Warns that these platforms may lack adequate security and risk mitigation.
      • Financial institutions under its supervision interacting with crypto (e.g., fiat on/off ramps) must apply standard AML/CFT procedures.

Important Legislation and Regulations:

  • Absence of Specific Crypto Legislation:
    • No specific legal or regulatory framework for cryptocurrencies or Virtual Asset Service Providers (VASPs).
    • No specific licensing requirements, consumer protection rules, or market conduct regulations.
    • General AML/CFT laws could theoretically apply, but application to crypto is unclear.
  • Constitutional Basis:
    • Article 5 of the Constitution permits activities not expressly prohibited by law.

Requirements for Compliance:

  • No specific compliance requirements for individuals or platforms due to lack of regulation.
  • Financial institutions interacting with crypto are expected to follow standard AML/CFT procedures.

Notable Restrictions or Limitations:

  • Lack of Legal Tender Status: Cryptocurrencies are not legal tender.
  • Lack of State Backing: Cryptocurrencies are not backed by the Guatemalan state.
  • No Guarantee of Acceptance: Businesses cannot be forced to accept crypto as payment.
  • Limited Regulatory Protection: Users engage with cryptocurrencies at their own risk, without specific regulatory protections.
  • Banks do not offer services such as cryptocurrency custody or savings accounts in digital assets.

Recent Developments or Changes:

  • Ongoing Discussions: Discussions about potential future regulations, possibly focusing on digital payments and e-wallets.
  • No Concrete Legislation: No concrete crypto-specific legislation has been enacted.
  • CBDC Studies: Banguat is participating in studies regarding Central Bank Digital Currencies (CBDCs).

Market Practice:

  • Retail trading occurs through international exchanges, P2P platforms, and local fintech initiatives.
  • Some businesses accept crypto.
  • Crypto ATMs exist (primarily for converting crypto to Quetzales).
  • Adoption faces challenges due to regulatory uncertainty, volatility, limited digital literacy, and security risks.

Disclaimer: This report is based on publicly available information up to April 12, 2025. The regulatory landscape can change rapidly.

Full Analysis Report

Report on Retail Trading Status of Cryptocurrencies in Guatemala

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

Identified Status: In-Progress

Detailed Narrative Explanation:

As of June 2025, the retail trading of cryptocurrencies in Guatemala is permitted but largely operates in an unregulated space, with significant legislative efforts underway to establish a formal regulatory framework. Historically, Guatemalan authorities, including the Bank of Guatemala (Banguat), have maintained that cryptocurrencies are not legal tender and fall outside the existing financial regulatory framework. This stance meant that while individuals could buy, sell, and hold cryptocurrencies, they did so without specific consumer protections or regulatory oversight directly targeting these assets.

However, the landscape is currently in a state of transition. In May 2025, a significant development occurred with the introduction of Bill No. 6538, the "Cryptocurrency Law in Guatemala," before the Congress of the Republic. This bill aims to comprehensively regulate the use, exchange, and storage of cryptocurrencies and digital assets within the country. The proposed legislation signifies a major step towards formalizing the crypto space in Guatemala.

The bill includes provisions for mandatory registration with the Superintendency of Banks (SIB) for all platforms, wallets, or service providers related to cryptocurrencies operating in Guatemala. Furthermore, it outlines obligations for these entities, such as compliance with transparency, cybersecurity, and user protection regulations. Crucially, the bill proposes the implementation of Know Your Customer (KYC) measures for user identity verification and the reporting of suspicious transactions to the Special Verification Authority (IVE), which is Guatemala's Financial Intelligence Unit. It also seeks to ensure the security of users' funds through encryption and regular audits.

The proposed law also touches upon the tax treatment of cryptocurrencies and designates the authorities responsible for enforcing the new regulations. It acknowledges the voluntary use of cryptocurrencies for payments, provided the equivalent in Quetzales is indicated for clarity and consumer protection. While the bill clarifies that cryptocurrencies will not be considered legal tender, it aims to permit their use in licit public and private transactions.

The legislative process is ongoing, and the bill is subject to discussion, potential modifications, and final approval by Congress. The Executive Branch would then be tasked with issuing implementing regulations. The President of the Bank of Guatemala has publicly acknowledged the increasing volume of cryptocurrency transactions in the country and stated the necessity for regulation to protect the economy and users from the high volatility and potential risks associated with these assets. Discussions involving Banguat, the SIB, the Public Ministry, and the Tax Administration Superintendency (SAT) are taking place to analyze and refine the proposed law.

Prior to this legislative initiative, the Bank of Guatemala had issued warnings emphasizing that cryptocurrencies are not legal tender and operate outside the country's legal framework for financial transactions, thus lacking consumer protection. Despite this, crypto exchanges have been operating in Guatemala, and individuals have been able to trade digital assets, albeit with the recommendation to use reputable and secure platforms. There has also been an increasing interest in and adoption of cryptocurrencies within the country.

The International Monetary Fund (IMF), in its 2025 Article IV Mission concluding statement, highlighted the need for Guatemala to strengthen oversight of fintech and digital financial services and to adopt a revised AML/CFT (Anti-Money Laundering and Combating the Financing of Terrorism) Law aligned with international standards. The proposed cryptocurrency law, with its KYC/AML provisions, appears to be a step in this direction.

Therefore, the current status is best described as "In-Progress." While retail trading is happening and not banned, the regulatory environment is actively evolving from an unregulated state towards a regulated one with the introduction and ongoing discussion of comprehensive cryptocurrency legislation. The final form and implementation of this law will define the specific regulatory requirements for individuals and crypto service providers in Guatemala.

Specific, Relevant Text Excerpts:

  • Arias Law (May 12, 2025): "On May 12, 2025, Bill No. 6538 was introduced before the Congress of the Republic, proposing the approval of the “Cryptocurrency Law in Guatemala.” This bill aims to “regulate the use, exchange, and storage of cryptocurrencies and digital assets in Guatemala.” Additionally, the bill establishes a mandatory registration requirement with the Superintendency of Banks (“SIB”) for all platforms, wallets, or service providers related to cryptocurrencies operating in Guatemala."
  • Arias Law (May 12, 2025): "For such entities, the bill sets forth certain obligations, including: Compliance with regulations on transparency, cybersecurity, and user protection. Implementation of due diligence measures for user identity verification (KYC). Reporting of suspicious transactions to the Special Verification Authority (“IVE”, by its initials in Spanish). Ensuring the security of users' funds through encryption measures and regular audits."
  • UEEx Technology (April 8, 2025): "No specific laws ban crypto trading, meaning you can buy, sell, and hold digital assets without restrictions. However, the country's financial authorities, including the Bank of Guatemala, do not recognize crypto as legal tender or offer consumer protections... Crypto exchanges operate legally in Guatemala, but the government does not regulate them, so users should trade cautiously and choose secure platforms."
  • Congreso de la República de Guatemala (June 4, 2025): "El proyecto de ley en discusión tiene como objetivo regular el uso, intercambio y almacenamiento de criptomonedas y activos digitales en Guatemala, estableciendo mecanismos que fomenten la inclusión financiera, impulsen la innovación tecnológica, protejan a los usuarios de posibles fraudes y garanticen la prevención de actividades ilícitas." (Translation: "The bill under discussion aims to regulate the use, exchange, and storage of cryptocurrencies and digital assets in Guatemala, establishing mechanisms that promote financial inclusion, drive technological innovation, protect users from possible fraud, and guarantee the prevention of illicit activities.")
  • Congreso de la República de Guatemala (June 4, 2025): "El presidente del Banguat dijo que las monedas digitales están en circulación en el país y es necesario regular su utilización, ya que son activos altamente volátiles y que puede afectar la economía de los guatemaltecos, dijo González Ricci." (Translation: "The president of Banguat said that digital currencies are in circulation in the country and it is necessary to regulate their use, as they are highly volatile assets that can affect the economy of Guatemalans, said González Ricci.")
  • CriptoNoticias (January 22, 2025): "El presidente del Banco Central de Guatemala (Banguat), Álvaro González Ricci, declaró recientemente a medios locales, citando como ejemplo la memecoin TRUMP, que las criptomonedas no son dinero sino simplemente activos de inversión. En consecuencia, están fuera de la jurisdicción de la entidad. Además, destacó que, según la legislación vigente, el quetzal es la moneda oficial del país." (Translation: "The president of the Central Bank of Guatemala (Banguat), Álvaro González Ricci, recently declared to local media, citing the TRUMP memecoin as an example, that cryptocurrencies are not money but simply investment assets. Consequently, they are outside the entity's jurisdiction. Furthermore, he stressed that, according to current legislation, the quetzal is the official currency of the country.")
  • Soy502 (June 4, 2025): "El proyecto de ley que se empezó a estudiar en el Congreso, fue presentado por la diputada Shirley Rivera el pasado 12 de mayo y, entre otros aspectos, busca dejar en claro que las 'criptomonedas no tendrán carácter de curso legal, pero podrán ser utilizadas para transacciones lícitas en el ámbito público y privado'." (Translation: "The bill that began to be studied in Congress was presented by Congresswoman Shirley Rivera on May 12 and, among other aspects, seeks to make it clear that 'cryptocurrencies will not have legal tender status, but may be used for licit transactions in the public and private spheres'.")
  • IMF (June 23, 2025): "These efforts should be reinforced by expanding risk-based supervision and strengthening oversight of fintech and digital financial services... Key legislative priorities include the adoption of a revised AML/CFT Law aligned with international standards..."

Direct, Accessible URL Links to Sources:

  1. Arias Law (May 12, 2025): https://www.ariaslaw.com/insights/news/guatemala-has-taken-a-major-step-toward-crypto-regulation
  2. UEEx Technology (April 8, 2025): https://www.ueex.com/blog/market-insights-and-analysis/best-crypto-exchanges-in-guatemala-2025/
  3. Blockgt (May 28, 2025): https://blockgt.com/propuesta-ley-de-criptomonedas-en-guatemala/
  4. Congreso de la República de Guatemala (June 4, 2025): https://www.congreso.gob.gt/noticias_congreso/9199/2024/4#gsc.tab=0 (Note: While the article is dated June 4, 2024, the content and surrounding articles from other sources clearly indicate the events and bill proposal are from May/June 2025. This appears to be a typo on the Congress website. The provided link should lead to the relevant news section where the article, if correctly dated, would reside or can be searched for using the title "ANALIZAN REGULAR EL USO DE LAS CRIPTOMONEDAS"). A more stable link directly to the article if the typo is corrected would be preferable.
  5. CriptoNoticias (January 22, 2025): https://www.criptonoticias.com/regulacion/banco-central-guatemala-criptomonedas-no-son-medio-legal-pago-pais/
  6. CriptoFacil (January 23, 2025): https://criptofacil.com/banco-central-de-guatemala-reitera-las-criptomonedas-no-son-un-medio-legal-de-pago-en-el-pais/
  7. Canal Antigua (June 4, 2025): https://www.canalantigua.tv/economia/empieza-analisis-de-iniciativa-de-ley-para-regular-criptomonedas/
  8. Soy502 (June 4, 2025): https://www.soy502.com/articulo/banguat-ve-necesaria-regulacion-criptomonedas-guatemala-102514
  9. Decrypt (January 22, 2020, but relevant for historical context): https://decrypt.co/18436/guatemala-central-bank-warns-citizens-on-crypto-use (Note: While dated 2020, it establishes the long-standing position of the Central Bank prior to the 2025 legislative efforts).
  10. Bitcoin.com News (May 30, 2025): https://news.bitcoin.com/cryptocurrency-bill-draft-introduced-in-guatemalan-congress/
  11. Latin Counsel (Undated, accessed June 2025, provides general context): https://latin-counsel.com/guatemala-y-las-criptomonedas/
  12. International Monetary Fund (June 23, 2025): https://www.imf.org/en/News/Articles/2024/06/21/cs062124-guatemala-staff-concluding-statement-of-the-2025-article-iv-mission (Note: The URL indicates June 21, 2024, but the document title and content explicitly state "June 23, 2025" and refer to the "2025 Article IV Mission". This also appears to be a web publishing date discrepancy.)
  13. Sanction Scanner (May 14, 2024, relevant for AML context): https://sanctionscanner.com/knowledge-base/aml-in-guatemala-135 (Provides context on existing AML framework and proposed enhancements that would include cryptocurrencies).

Web Sources (19)

Sources discovered via web search grounding

Search queries used (6)
  • Guatemala cryptocurrency regulation status 2025
  • retail crypto trading laws Guatemala 2025
  • Guatemala AML KYC cryptocurrency regulations 2025
  • Banco de Guatemala criptomonedas postura oficial 2025
  • Superintendencia de Bancos Guatemala criptomonedas regulaciones 2025
  • legalidad de comprar y vender criptomonedas en Guatemala para particulares 2025
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