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Cabo Verde

Retail_Trading_Status

Allowed-Regulated Unknown
Analysis ID
#571
Version
Latest
Created
2025-07-04 10:14
Workflow Stage
Live

Executive Summary

Retail cryptocurrency trading is legally permitted but regulated in Cabo Verde, primarily through AML/CFT measures. The Banco de Cabo Verde (BCV) oversees the sector, requiring virtual asset service providers (VASPs) to register. Key legislation includes Law No. 30/X/2023, mandating registration for VASPs, and Lei n.º 3/24, which prohibits cryptocurrency mining. The regulatory approach aims to balance innovation with risk management, including exploring a central bank digital currency (CBDC).

Key Pillars

  • Primary regulator: Banco de Cabo Verde (BCV) is responsible for overseeing and regulating virtual asset activities.
  • Core compliance: Virtual Asset Service Providers (VASPs) are required to register with the BCV and comply with Anti-Money Laundering and Counter-Financing of Terrorism (AML/CFT) regulations.
  • Licensing/Registration: Entities dealing with virtual assets must obtain prior registration with the Banco de Cabo Verde.

Landmark Laws

  • Law No. 30/X/2023 of June 21, 2023: Mandates that any entity wishing to conduct activities involving virtual assets within Cabo Verde must register with the Banco de Cabo Verde, focusing on AML/CFT compliance.
  • Lei n.º 3/24 de 10 de Abril: Explicitly prohibits the activity of mining cryptocurrencies and other virtual assets.

Considerations

  • Virtual assets are defined as a digital representation of value, not necessarily linked to a legally established currency, accepted as a medium of exchange or investment, and transferable, storable, and tradable electronically.
  • The Banco de Cabo Verde has issued warnings about the risks associated with virtual currencies, including their volatility, lack of legal tender status, and potential for use in illicit activities.
  • The government is actively modernizing its legal framework for digital services and e-commerce to foster a resilient and agile economy.

Notes

  • In March 2018, the Banco de Cabo Verde issued an alert cautioning the public about the risks of acquiring, holding, or trading cryptocurrencies like Bitcoin.
  • The Banco de Cabo Verde is studying the potential introduction of a central bank digital currency (CBDC).
  • The Prime Minister of Cabo Verde, Ulisses Correia e Silva, stated in 2023 that the country has the necessary legal conditions for the development of the cryptocurrency industry, with the BCV overseeing the sector to prevent money laundering and terrorist financing.

Detailed Explanation

Retail cryptocurrency trading is legally permitted in Cabo Verde but is now subject to specific regulations, primarily concerning Anti-Money Laundering and Counter-Financing of Terrorism (AML/CFT). The Banco de Cabo Verde (BCV) is the primary regulator. A key development was the enactment of Law No. 30/X/2023 of June 21, 2023, which mandates that any entity wishing to conduct activities involving virtual assets within Cabo Verde must register with the Banco de Cabo Verde. The primary focus of this legislation is to bring virtual asset service providers (VASPs) under the country's AML/CFT regime, aligning with international standards set by bodies like the Financial Action Task Force (FATF). In a 2023 interview, Prime Minister Ulisses Correia e Silva confirmed the existence of this legislation, stating that Cabo Verde has the necessary legal conditions for the cryptocurrency industry development, with the BCV overseeing the sector to prevent illicit financial activities.

Further cementing this regulatory approach, the Banco de Cabo Verde has been working on detailed implementation rules. A draft notice from 2024 outlines the specific procedures and documentation required for the registration of entities that deal with virtual assets. The notice defines virtual assets as a digital representation of value not necessarily linked to legal currency, accepted as a medium of exchange or investment, and transferable, storable, and tradable electronically. However, Lei n.º 3/24 de 10 de Abril explicitly prohibits the activity of mining cryptocurrencies and other virtual assets.

Historically, the BCV issued warnings about the risks associated with virtual currencies. A significant alert was issued in March 2018, cautioning the public about the dangers of acquiring, holding, or trading cryptocurrencies like Bitcoin, emphasizing the lack of guarantees and consumer protection. This cautious stance has now evolved towards a more structured regulatory framework.

The regulatory landscape is also shaped by Cabo Verde's broader digital transformation strategy. The government has been actively modernizing its legal framework for digital services and e-commerce to foster a resilient and agile economy. In parallel, the Banco de Cabo Verde is studying the potential introduction of a central bank digital currency (CBDC), indicating a proactive engagement with financial innovation. The BCV also has information available regarding AML/CFT measures on their website.

Summary Points

Retail Cryptocurrency Trading Status in Cabo Verde: Regulatory Analysis

Overall Status: Allowed-Regulated. Retail cryptocurrency trading is permitted but subject to specific regulations.

1. Key Regulatory Bodies & Roles:

  • Banco de Cabo Verde (BCV):
    • Central bank and primary regulatory authority for virtual asset activities.
    • Responsible for registering Virtual Asset Service Providers (VASPs).
    • Oversees the sector to prevent money laundering and terrorist financing (AML/CFT).
    • Working on detailed implementation rules for virtual asset registration.
    • Studying the potential introduction of a Central Bank Digital Currency (CBDC).

2. Important Legislation & Regulations:

  • Law No. 30/X/2023 of June 21, 2023:
    • Mandates registration with the BCV for any entity conducting activities involving virtual assets.
    • Focuses on bringing VASPs under the country's AML/CFT regime.
  • Lei n.º 3/24 de 10 de Abril (April 10, 2024):
    • Explicitly prohibits the activity of mining cryptocurrencies and other virtual assets.
  • Draft Notice (2024) from Banco de Cabo Verde:
    • Outlines specific procedures and documentation required for VASP registration.

3. Requirements for Compliance:

  • Registration with Banco de Cabo Verde (BCV):
    • Any entity providing services related to virtual assets must register.
    • Registration process involves specific procedures and documentation (detailed in the BCV's draft notice).
  • AML/CFT Compliance:
    • VASPs are subject to Anti-Money Laundering and Counter-Financing of Terrorism regulations.
    • This aligns with international standards set by the Financial Action Task Force (FATF).

4. Notable Restrictions or Limitations:

  • Prohibition of Cryptocurrency Mining:
    • Mining cryptocurrencies and other virtual assets is explicitly prohibited by Lei n.º 3/24 de 10 de Abril.
  • Lack of Legal Tender Status:
    • Cryptocurrencies are not legal tender in Cabo Verde.
  • Risk Warnings:
    • The BCV has issued warnings about the risks associated with virtual currencies, including volatility and lack of consumer protection.

5. Recent Developments or Changes:

  • Shift from Caution to Regulation:
    • Cabo Verde's approach has evolved from issuing warnings about cryptocurrency risks to establishing a regulatory framework.
  • Enactment of Law No. 30/X/2023:
    • A key development that mandates VASP registration and AML/CFT compliance.
  • Draft Notice from BCV (2024):
    • Indicates a move towards operationalizing the 2023 law and actively supervising the sector.
  • Prohibition of Crypto Mining (April 2024):
    • Lei n.º 3/24 de 10 de Abril explicitly bans cryptocurrency mining.
  • BCV Studying CBDC:
    • The Banco de Cabo Verde is exploring the potential introduction of a central bank digital currency (CBDC).

Full Analysis Report

Report on the Current Status of Retail Cryptocurrency Trading in Cabo Verde

Date of Report: 2025-07-04

Topic: Retail_Trading_Status

This section assesses the legal and regulatory framework governing the buying, selling, and holding of cryptocurrencies by individual citizens and residents in Cabo Verde.

1. Current Status: Allowed-Regulated

Retail cryptocurrency trading is legally permitted in Cabo Verde but is now subject to specific regulations, primarily concerning Anti-Money Laundering and Counter-Financing of Terrorism (AML/CFT). While the activity is not prohibited, entities providing services related to virtual assets must register with the central bank, the Banco de Cabo Verde (BCV).

2. Detailed Narrative Explanation

Cabo Verde's approach to cryptocurrency has evolved from a position of caution to one of regulated acceptance. For years, the country's financial authorities, led by the Banco de Cabo Verde (BCV), issued warnings about the risks associated with virtual currencies, highlighting their volatility, lack of legal tender status, and potential for use in illicit activities. A significant alert was issued in March 2018, where the BCV cautioned the public about the dangers of acquiring, holding, or trading cryptocurrencies like Bitcoin. The bank emphasized that these assets were not guaranteed by any central authority and offered no consumer protection.

This cautious stance has more recently shifted towards establishing a regulatory framework. A key development was the enactment of Law No. 30/X/2023 of June 21, 2023. This law mandates that any entity wishing to conduct activities involving virtual assets within Cabo Verde must register with the Banco de Cabo Verde. The primary focus of this legislation is to bring virtual asset service providers (VASPs) under the umbrella of the country's AML/CFT regime. This aligns with international standards set by bodies like the Financial Action Task Force (FATF).

In a 2023 interview, the Prime Minister of Cabo Verde, Ulisses Correia e Silva, confirmed the existence of this legislation. He stated that the country has the necessary legal conditions for the development of the cryptocurrency industry, with the Banco de Cabo Verde overseeing the sector to prevent money laundering and terrorist financing.

Further cementing this regulatory approach, the Banco de Cabo Verde has been working on detailed implementation rules. A draft notice from 2024 outlines the specific procedures and documentation required for the registration of entities that deal with virtual assets. This indicates a clear move towards operationalizing the 2023 law and actively supervising the sector.

It is important to note that while trading is being regulated, other crypto-related activities face stricter measures. A law passed in April 2024, Lei n.º 3/24 de 10 de Abril, explicitly prohibits the activity of mining cryptocurrencies and other virtual assets.

The regulatory landscape is also shaped by Cabo Verde's broader digital transformation strategy. The government has been actively modernizing its legal framework for digital services and e-commerce to foster a resilient and agile economy. In parallel, the Banco de Cabo Verde is studying the potential introduction of a central bank digital currency (CBDC), indicating a proactive, albeit cautious, engagement with financial innovation.

In summary, individual citizens and residents in Cabo Verde are permitted to trade cryptocurrencies. However, the space is no longer unregulated. Service providers are now subject to registration and AML/CFT compliance under the supervision of the Banco de Cabo Verde, marking a significant step towards a formalized and monitored cryptocurrency market.

3. Relevant Text Excerpts

  • Source: Banco de Cabo Verde (Draft Notice, 2024)
    > "As atividades com ativos virtuais só podem ser exercidas por entidade que para o efeito obtenha o seu registo prévio junto do Banco de Cabo Verde..." (Activities with virtual assets can only be carried out by an entity that, for this purpose, obtains its prior registration with the Banco de Cabo Verde...).
    > "Para efeitos do presente Aviso, consideram-se: a) «Ativo virtual», uma representação digital de valor que não esteja necessariamente ligada a uma moeda legalmente estabelecida e que não possua o estatuto jurídico de moeda fiduciária, mas que é aceite por pessoas singulares ou coletivas como meio de troca ou de investimento e que pode ser transferida, armazenada e comercializada por via eletrónica;" (For the purposes of this Notice, the following are considered: a) «Virtual asset», a digital representation of value that is not necessarily linked to a legally established currency and that does not have the legal status of fiat money, but that is accepted by natural or legal persons as a medium of exchange or investment and that can be transferred, stored and traded electronically;).

  • Source: Cointelegraph Brasil (Interview with Prime Minister of Cabo Verde, 2023)
    > "Nós já temos uma legislação relativa as criptomoedas e nela, o Banco Central, que faz a supervisão bancária também está ligado a esta matéria e é um setor em desenvolvimento e em Cabo Verde temos as condições legais para o desenvolvimento desta industria." (We already have legislation regarding cryptocurrencies and in it, the Central Bank, which carries out banking supervision, is also linked to this matter and it is a developing sector and in Cabo Verde we have the legal conditions for the development of this industry.).

  • Source: Banco de Cabo Verde (Alert, 2018)
    > "O presente alerta é emitido para assinalar os riscos em que pode incorrer quem adquire, detém ou negoceia moedas virtuais, ou cripto-moedas, como a Bitcoin, considerando a popularidade crescente que vêm assumindo a nível mundial." (This alert is issued to highlight the risks that may be incurred by those who acquire, hold or trade virtual currencies, or crypto-currencies, such as Bitcoin, considering the growing popularity they have been assuming worldwide.).

  • Source: Legis-Palop.org (Newsletter, May 2024)
    > "Lei n.º 3/24 de 10 de Abril – Aprovação da Lei Sobre a Proibição da Actividade de Mineração de Criptomoedas e outros Activos Virtuais." (Law No. 3/24 of April 10 – Approval of the Law on the Prohibition of the Activity of Mining Cryptocurrencies and other Virtual Assets.).

4. Referenced URLs

  1. Banco de Cabo Verde - Draft Notice on Virtual Asset Activity Registration (2024): https://www.bcv.cv/pt/comunicados_e_notas/outros_documentos/projecto-de-aviso-que-regulamenta-o-disposto-no-artigo-3-da-lei-n-30-x-2023-de-21-de-junho
  2. Banco de Cabo Verde - Alert on Virtual Currency Risks (2018): https://www.bcv.cv/pt/comunicados_e_notas/noticias/alerta-do-banco-de-cabo-verde
  3. Banco de Cabo Verde - Detailed Communiqué on Virtual Currencies (2018): https://www.bcv.cv/pt/comunicados_e_notas/outros_documentos/comunicado-riscos-das-moedas-virtuais-cripto-moedas
  4. Legis-Palop.org - Newsletter mentioning the ban on crypto mining (May 2024): https://www.legis-palop.org/bd/newsletter/2024/newsletter-maio-2024
  5. Cointelegraph Brasil - Interview with the Prime Minister of Cabo Verde (2023): https://br.cointelegraph.com/news/in-brazil-prime-minister-of-cape-verde-defends-innovation-in-cryptocurrencies-highlights-national-bitcoin-law-and-talks-about-cbdcs
  6. SAPO - Report on BCV studying digital currency (2022): https://eco.sapo.cv/2022/11/14/banco-de-cabo-verde-estuda-introducao-de-moeda-digital-e-alerta-para-os-riscos/
  7. Banco de Cabo Verde - AML/CFT Information: https://www.bcv.cv/pt/supervisao/prevencao-a-lavagem-de-capitais-e-financiamento-ao-terrorismo

Web Sources (13)

Sources discovered via web search grounding

Search queries used (5)
  • estatuto legal da negociação de criptomoedas a retalho em Cabo Verde
  • Banco de Cabo Verde regulamentação de criptomoedas
  • legislação sobre criptomoedas em Cabo Verde 2024
  • avisos do Banco de Cabo Verde sobre moedas virtuais
  • Cabo Verde leis de combate à lavagem de dinheiro em criptomoedas
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