American Samoa

Retail_Trading_Status

Allowed-Regulated High Confidence

Analysis ID: #585
Version: Latest
Created: 2025-12-12 02:54
Run: bb14f682...
History: View all versions
Workflow Stage: Step 1

Executive Summary

Cryptocurrency trading is legal in American Samoa, primarily regulated under United States federal law. As a U.S. territory, American Samoa falls under the jurisdiction of federal agencies including FinCEN, which requires cryptocurrency exchanges to register as Money Services Businesses (MSBs). While there is no specific local 'crypto' legislation, the American Samoa Office of Financial Institutions (OFI) oversees local financial providers, and the territory faces significant operational challenges due to limited banking infrastructure.

Detailed Explanation

Cryptocurrency trading is legal and regulated in American Samoa. As a U.S. territory, the regulatory framework is primarily dictated by United States federal law, with no specific local legislation dedicated to digital assets. The foundational federal statute is the Bank Secrecy Act (31 U.S.C. 5311 et seq.), enacted on October 26, 1970, which mandates that cryptocurrency exchanges operating in the territory must register as Money Services Businesses (MSBs) with the Financial Crimes Enforcement Network (FinCEN). This registration obligates them to implement anti-money laundering (AML) and counter-financing of terrorism (CFT) programs, including customer identification and transaction reporting. At the local level, the American Samoa Office of Financial Institutions (OFI) provides oversight for financial service providers, and the American Samoa Department of Treasury handles general business licensing, though their roles are not crypto-specific. The Internal Revenue Service (IRS) governs the tax treatment of cryptocurrency, classifying it as property subject to capital gains tax rules for residents. The primary operational challenge in American Samoa is not legal prohibition but severe infrastructural limitations. The territory's banking system, notably the Territorial Bank of American Samoa (TBAS), lacks FDIC insurance and has limited correspondent banking relationships. This makes establishing reliable fiat currency on-ramps and off-ramps for crypto exchanges extremely difficult, leading major platforms like Binance.US to explicitly exclude the territory from their services. It is crucial to distinguish American Samoa from the Independent State of Samoa, as the latter's regulations, including those from the Central Bank of Samoa, do not apply in this U.S. jurisdiction.

Summary Points

I. Regulatory Status
* Cryptocurrency trading is Allowed-Regulated in American Samoa.
* The legal framework is primarily based on United States federal law, as American Samoa is a U.S. territory.
* There is no specific local cryptocurrency legislation; general financial and business laws apply.

II. Key Regulatory Bodies
* Financial Crimes Enforcement Network (FinCEN) (Federal): The primary federal regulator for AML/CFT compliance, requiring crypto exchanges to register as Money Services Businesses (MSBs).
* American Samoa Office of Financial Institutions (OFI): The local body overseeing financial institutions and providers, including those dealing with money services.
* Internal Revenue Service (IRS) (Federal): Enforces federal tax guidelines, treating cryptocurrency as property for tax purposes.
* American Samoa Department of Treasury: Responsible for local business licensing.

III. Important Legislation
* Bank Secrecy Act (Federal) (31 U.S.C. 5311 et seq.) - Enacted: 1970-10-26
* The cornerstone federal anti-money laundering law applicable to American Samoa.
* Requires financial institutions, including cryptocurrency exchanges registered as MSBs, to assist in detecting and preventing financial crimes.
* American Samoa Code Title 28 - Finance and Financial Institutions (ASCA Title 28)
* The territory's general code governing banking and financial institutions.
* Provides the legal basis for licensing money services businesses, which encompasses crypto exchanges under the federal MSB definition.

IV. Compliance Requirements
* Cryptocurrency exchanges must register as Money Services Businesses (MSBs) with FinCEN.
* MSBs must establish and maintain an AML/CFT program, including customer identification (KYC) and reporting of suspicious activities.
* Businesses must comply with local business licensing requirements through the American Samoa Department of Treasury.
* Individuals and businesses must adhere to U.S. federal tax guidelines, reporting cryptocurrency as property and calculating capital gains/losses.

V. Notable Restrictions or Limitations
* Severe Banking Infrastructure Constraints: The Territorial Bank of American Samoa (TBAS) is not FDIC-insured and has limited correspondent banking relationships, critically hampering fiat currency on/off-ramps for crypto services.
* Limited Exchange Access: Major U.S.-based exchanges, such as Binance.US, explicitly list American Samoa as an unsupported region, primarily due to the banking challenges.
* Jurisdictional Distinction: Regulations from the Independent State of Samoa and its Central Bank of Samoa do NOT apply to American Samoa; confusion between the two is common but incorrect.

VI. Recent Developments or Notes
* The regulatory environment remains stable, anchored to U.S. federal law, with no recent major legislative changes specific to cryptocurrency reported.
* The operational and banking limitations present a more significant barrier to cryptocurrency adoption and service provision than the legal framework itself.

Full Analysis Report

The regulatory status of cryptocurrency in American Samoa is defined by its position as an unincorporated territory of the United States. Consequently, the primary regulatory framework is federal. The Financial Crimes Enforcement Network (FinCEN) asserts jurisdiction over the territory, requiring cryptocurrency exchanges and custodians to register as Money Services Businesses (MSBs) and comply with the Bank Secrecy Act (BSA). This ensures that Anti-Money Laundering (AML) and Know Your Customer (KYC) standards are legally enforceable, classifying the jurisdiction as 'Allowed-Regulated'.

Locally, the American Samoa Office of Financial Institutions (OFI) and the Department of Treasury oversee financial activities. While there is no specific 'Blockchain Act' or distinct virtual asset legislation passed by the Fono (legislature) as of late 2025, entities operating money transmission services must hold a business license. For instance, Google Payment Corp holds a Money Services Business license in the territory. However, the lack of tailored local crypto regulations means that enforcement largely relies on federal agencies.

A significant practical hurdle for retail trading is the territory's banking infrastructure. Following the departure of major commercial banks like the Bank of Hawaii, the government established the Territorial Bank of American Samoa (TBAS). TBAS is not FDIC-insured and has faced challenges securing correspondent banking relationships. This isolation makes it difficult for residents to transfer fiat currency to and from crypto exchanges. As a result, major platforms like Binance.US list American Samoa as an 'unsupported state/region,' although others like Kraken do not explicitly prohibit it in their public terms.

It is crucial to distinguish American Samoa from the neighboring Independent State of Samoa (Western Samoa). The latter has a Central Bank that has issued strict warnings and regulations regarding cryptocurrency. These directives do not apply to American Samoa. In American Samoa, crypto assets are treated as property for tax purposes under IRS guidelines, which are generally mirrored or directly applied in the territory.

The regulatory status of cryptocurrency in American Samoa is defined by its position as an unincorporated territory of the United States. Consequently, the primary regulatory framework is federal. The Financial Crimes Enforcement Network (FinCEN) asserts jurisdiction over the territory, requiring cryptocurrency exchanges and custodians to register as Money Services Businesses (MSBs) and comply with the Bank Secrecy Act (BSA). This ensures that Anti-Money Laundering (AML) and Know Your Customer (KYC) standards are legally enforceable, classifying the jurisdiction as 'Allowed-Regulated'.

Locally, the American Samoa Office of Financial Institutions (OFI) and the Department of Treasury oversee financial activities. While there is no specific 'Blockchain Act' or distinct virtual asset legislation passed by the Fono (legislature) as of late 2025, entities operating money transmission services must hold a business license. For instance, Google Payment Corp holds a Money Services Business license in the territory. However, the lack of tailored local crypto regulations means that enforcement largely relies on federal agencies.

A significant practical hurdle for retail trading is the territory's banking infrastructure. Following the departure of major commercial banks like the Bank of Hawaii, the government established the Territorial Bank of American Samoa (TBAS). TBAS is not FDIC-insured and has faced challenges securing correspondent banking relationships. This isolation makes it difficult for residents to transfer fiat currency to and from crypto exchanges. As a result, major platforms like Binance.US list American Samoa as an 'unsupported state/region,' although others like Kraken do not explicitly prohibit it in their public terms.

It is crucial to distinguish American Samoa from the neighboring Independent State of Samoa (Western Samoa). The latter has a Central Bank that has issued strict warnings and regulations regarding cryptocurrency. These directives do not apply to American Samoa. In American Samoa, crypto assets are treated as property for tax purposes under IRS guidelines, which are generally mirrored or directly applied in the territory.

Source Evidence

Primary and secondary sources cited in this analysis

FinCEN Guidance on Application of FinCEN's Regulations to Certain Business Models Involving Convertible Virtual Currencies primary (regulator)

2019-05-09

"The Bank Secrecy Act and its implementing regulations define a 'money transmitter' as a person that provides money transmission services... this includes... convertible virtual currency."

American Samoa Bar Association - Title 28 Finance and Financial Institutions primary (law_text)

2021-08-01

"Title 28 governs Finance and Financial Institutions within the territory."

Binance.US Supported States primary (company_policy)

2025-12-12

"Unfortunately, you will not be able to register and verify for a Binance.US account if you reside in any of the following states/regions: ... American Samoa."

NCSL Cryptocurrency and Digital Asset Legislation 2025 secondary (analysis)

2025-01-01

"American Samoa. None."

Congress.gov - Public Banks: History and Recent Proposals secondary (official_government)

2022-09-20

"In 2016, the American Samoa government established a public bank, the Territorial Bank of American Samoa... it is ineligible for federal deposit insurance."

Web Sources (15)

Sources discovered via web search grounding

Search queries used (11)

American Samoa blockchain legislation
American Samoa money transmitter laws cryptocurrency
American Samoa cryptocurrency regulation
Does FinCEN authority extend to American Samoa crypto
American Samoa Office of Financial Institutions crypto
American Samoa code Title 28 Chapter 01 money services
Does Coinbase support American Samoa
Does Kraken support American Samoa
American Samoa crypto tax laws
"Territorial Bank of American Samoa" cryptocurrency policy
American Samoa Office of Financial Institutions money transmitter license requirements