Samoa

## Report on Retail Trading Status of Cryptocurrencies in Samoa

**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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### 1. Identified Current Status

**Allowed-Unregulated**

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### 2. Detailed Narrative Explanation

Retail cryptocurrency trading (buying, selling, and holding) by individual citizens and residents in Samoa is not explicitly banned, nor is it specifically regulated with a dedicated framework. Therefore, it falls into an "Allowed-Unregulated" status. However, this exists within a context of strong cautionary advice from the Central Bank of Samoa (CBS) and the application of general financial laws, particularly concerning Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT).

Historically, the CBS has consistently issued warnings to the public regarding the risks associated with cryptocurrencies. As early as June 2017, the Central Bank cautioned the public about digital currency investments, urging diligence and understanding of the risks. This stance has been reiterated over the years.

While individuals are not prohibited from trading or holding cryptocurrencies, the CBS does not recognize cryptocurrencies as legal tender. This means they cannot be legally used as a currency to pay for goods or services in Samoa. The CBS has emphasized that investments in digital currencies are considered very risky and speculative, and those who invest do so at their own risk. There are no specific licensing regimes for cryptocurrency exchanges catering to retail traders within Samoa, and residents typically use international platforms.

A significant aspect of the Samoan approach is the application of the Money Laundering Prevention Act 2007 (and its amendments, such as the 2018 amendment). Under this Act, any person or entity wishing to *promote* cryptocurrency or digital currency is considered a Financial Institution. This means they must have a valid business license issued in Samoa and adhere to the CBS's reporting requirements for Financial Institutions, including AML/CFT obligations. This regulation targets promoters and businesses rather than individual retail traders who are buying, selling, or holding for their own account without actively promoting these activities as a business.

In 2023, the Samoan government issued a warning regarding unapproved overseas business ventures, including a "Samoa Digital Asset Exchange," clarifying that it had not endorsed or approved such initiatives and was taking a cautious approach due to risks of scams and money laundering. This further underscores the government's cautious stance and lack of a formal regulatory framework for cryptocurrency exchanges operating in or from Samoa.

The absence of a specific crypto-focused regulatory framework means there are no tailored investor protection measures, specific tax rules for cryptocurrencies, or licensing requirements for platforms specifically dealing with retail crypto transactions (unless they are deemed "promoters"). General commercial and financial laws, particularly AML/CFT provisions, would apply to activities that fall within their scope. The Central Bank of Samoa has also highlighted the need for Samoa to comply with international standards, such as those from the Financial Action Task Force (FATF), concerning virtual assets.

In summary, while Samoan individuals can engage in retail cryptocurrency trading, it is an unregulated sector. The authorities have issued strong warnings about the risks, do not consider cryptocurrencies legal tender, and apply existing AML/CFT laws to entities promoting cryptocurrencies. There is no specific framework governing the day-to-day buying, selling, and holding of cryptocurrencies by individuals for personal investment.

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### 3. Specific, Relevant Text Excerpts

*   **Central Bank of Samoa (February 21, 2019, as reported by Samoa Observer & Samoa Global News):**
    *   "The Central bank also wishes to remind the public that cryptocurrencies (i.e. virtual currencies or digital money such as bitcoin, Onecoin, ethereum, EOS, Lite Coin and others) are not currencies issued or regulated by the Central Bank. They do not have any legal tender status to be accepted as a currency in Samoa."
    *   "Investment in such digital currencies is considered very risky and speculative in nature. People who invest in any of the cryptocurrencies do so at their own risk."
    *   "Any person who wishes to promote Cryptocurrency or Digital currency is considered under the Money Laundering Prevention Amendment Act 2018 as a Financial Institution. This means it must have a valid business licence issued in Samoa and is required to follow the Central Bank's reporting requirements for Financial Institutions."
    *   "The Central Bank does not currently endorse unregulated cryptocurrencies like bitcoin, Onecoin or any cryptocurrency that has been promoted in Samoa. Therefore, the Central bank does not encourage anyone to invest in any of them."

*   **UPay Blog (December 6, 2024 - *Note: This date appears to be a future date in the source, likely a typo, and information aligns with other sources from earlier periods*):**
    *   "Adoption Status: While there is no explicit ban on crypto in Samoa, it doesn't recognise it as a legal tender and it remains unregulated."
    *   "One of the most pressing issues is the absence of a clear regulatory framework for cryptocurrencies. The Central Bank of Samoa (C.B.S.) has not recognized digital currencies as legal tender, leaving the industry unregulated."

*   **Freeman Law (referencing a CBS Press Release from June 12, 2017):**
    *   "On June 12, 2017, the Central Bank of Samoa issued a statement in which it warned the public to be “very cautious and diligent” in dealing with digital currency investments."
    *   "No other government statements or regulatory actions were located." (Note: This statement by Freeman Law may be dated, as further CBS statements have been issued since 2017).

*   **Carlos Maiz (January 2, 2025 - *Note: This date appears to be a future date in the source, likely a typo, and information aligns with other sources from earlier periods*):**
    *   "Currently, Samoa does not have specific regulations for cryptocurrencies. The government has not yet established a formal legal framework or tax policies regarding digital currencies."
    *   "As there are no local cryptocurrency exchanges in Samoa, residents can use international platforms to buy, sell, and trade cryptocurrencies."

*   **Government of Samoa (June 16, 2023, as reported by RNZ News):**
    *   Regarding proposals for a Samoa Digital Asset Exchange: "Proposals of this nature require proper frameworks in place to regulate the exchange platform and protect market users and investors."
    *   "The government said it was taking a "cautious approach" concerning any proposals related to Digital Assets (also known as virtual assets or cryptocurrency) Exchanges. This was because of the global experiences that such exchanges can be used in scams and money laundering."

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### 4. Direct, Accessible URL Links to Sources

*   Freeman Law - Samoa and Cryptocurrency: `https://freemanlaw.com/samoa-cryptocurrency-laws/` (Referencing Central Bank of Samoa, Press Release, Beware of These Get Rich Quick Schemes and Digital Currency, June 12, 2017)
*   UPay Blog - Crypto Adoption Around the World: Samoa: `https://upay.blog/samoa-crypto-adoption-around-the-world/`
*   Samoa Observer - Central Bank warns against cryptocurrency (February 21, 2019): `https://www.samoaobserver.ws/category/samoa/16130`
*   Carlos Maiz - How to Buy Cryptocurrencies in Samoa (January 2, 2025 - *likely typo in source date*): `https://carlosmaiz.com/how-to-buy-cryptocurrencies-in-samoa/`
*   Samoa Global News - Central Bank Issues Warning on Cryptocurrencies (February 21, 2019): `https://samoaglobalnews.com/central-bank-issues-warning-on-cryptocurrencies/`
*   Samoa Observer - A deal that is too good to be true (March 18, 2025 - *likely typo in source date, refers to ongoing concerns*): `https://www.samoaobserver.ws/category/samoa/99808`
*   Samoa Observer - Cryptocurrency transactions worry C.B.S. (April 28, 2019): `https://www.samoaobserver.ws/category/samoa/19087`
*   RNZ News - Samoa govt raises alarm over unapproved overseas business ventures (June 16, 2023): `https://www.rnz.co.nz/international/pacific-news/492169/samoa-govt-raises-alarm-over-unapproved-overseas-business-ventures`
*   Law Library of Congress - Regulation of Cryptocurrency Around the World: November 2021 Update (November 2, 2021): `https://www.loc.gov/law/help/cryptocurrency/world-survey.php` (Search for Samoa in the table)
*   Benar News - Chinese investors, a Samoan high chief plot a cryptocurrency hub in paradise (July 8, 2023): `https://www.benarnews.org/english/news/pacific/samoa-china-cryptocurrency-07082023152011.html`
*   IMF eLibrary - Elements of Effective Policies for Crypto Assets (February 23, 2023): `https://www.elibrary.imf.org/view/journals/007/2023/002/article-A001-en.xml` (General policy paper, relevant for understanding international standards context)
*   Central Bank of Samoa Website (for general reference and official statements, though direct links to specific crypto warnings may need to be searched on the site): `https://www.cbs.gov.ws/` (A section for "Cryptocurrency" exists under "Scams" in the Media menu)

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**Disclaimer:** This report is based on information available up to the current date and aims to provide an accurate assessment of the retail trading status of cryptocurrencies in Samoa. Regulatory landscapes can change, and users should consult with legal and financial professionals for the most current advice.