Belize
Retail_Trading_Status
- Analysis ID
- #607
- Version
- Latest
- Created
- 2025-12-12 03:54
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- b6f3afaf...
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- Workflow Stage
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Executive Summary
Retail cryptocurrency trading is legal for individuals in Belize, who may hold and trade assets for personal use. However, the domestic regulatory environment is in a state of suspension; the Financial Services Commission (FSC) has imposed a moratorium on issuing licenses for Virtual Asset Service Providers (VASPs) until December 31, 2025. Consequently, no local exchanges can legally operate, and residents must rely on foreign platforms, while the government finalizes its compliance framework.
Key Pillars
Financial Services Commission (FSC) - Primary Regulator
Financial Services Commission Act, 2023 (Act No. 8 of 2023)
Central Bank of Belize (AML/CFT Oversight)
Licensing Moratorium (Active until Dec 31, 2025)
Landmark Laws
Financial Services Commission Act, 2023 (Act No. 8 of 2023) - Enacted: 2023-04-15
- Comprehensive financial services law that defines 'Virtual Assets' and explicitly prohibits conducting VASP business in or from Belize without a license (Section 81).
- Source
Restriction on Virtual Asset Activities (Public Notice) (FSC/2/PN/012) - Enacted: 2023-05-25
- Regulatory circular announcing that no licenses for virtual asset activities will be issued until December 31, 2025, and ordering existing operators to cease activities by July 2023.
- Source
Considerations
Personal ownership and trading are not criminalized.
Domestic crypto businesses (exchanges, ATMs, brokers) are currently banned from operating.
Residents must use offshore/international exchanges to trade.
Strict AML/CFT scrutiny is applied to bank transfers involving crypto entities.
The licensing freeze is scheduled to lift on December 31, 2025, potentially shifting the status to 'Allowed-Regulated' in 2026.
Notes
The 'Gray-Zone' classification is driven by the active moratorium. Although a law exists (which usually implies 'Allowed-Regulated'), the refusal to issue licenses and the order for existing businesses to close places Belize in a temporary restrictive state. This is expected to resolve into 'Allowed-Regulated' once the FSC begins processing applications in 2026.
Remaining Uncertainties
- Will the moratorium definitely lift on Dec 31, 2025, or will it be extended?
- What specific capital requirements and compliance rules will be introduced for the new licensing regime in 2026?
- How will the tax authority treat capital gains from crypto for retail investors once the market is regulated?
Detailed Explanation
Detailed Explanation
Belize occupies a 'Gray-Zone' status for cryptocurrency regulation, characterized by a legal framework that exists but is currently suspended by a moratorium on licensing. Retail cryptocurrency trading for personal use is legal for individuals, who may hold and trade assets. However, the domestic environment for businesses is restrictive. The primary regulator, the Financial Services Commission (FSC), enacted the Financial Services Commission Act, 2023 (Act No. 8 of 2023) on April 15, 2023. This law defines 'Virtual Assets' and, in Section 81, explicitly prohibits conducting Virtual Asset Service Provider (VASP) business in or from Belize without a license. Despite this legislation, the FSC issued a Public Notice (FSC/2/PN/012) on May 25, 2023, imposing a moratorium on issuing any licenses for virtual asset activities until December 31, 2025. This notice also ordered any existing operators to cease their activities by July 2023. Consequently, no local cryptocurrency exchanges, brokers, or ATMs can legally operate, forcing residents to rely on foreign platforms for trading activities.The regulatory framework is overseen by the Financial Services Commission (FSC) as the primary regulator under the Financial Services Commission Act, 2023. The Central Bank of Belize also plays a role in Anti-Money Laundering and Counter-Financing of Terrorism (AML/CFT) oversight, applying strict scrutiny to bank transfers involving cryptocurrency entities. The key requirement established by law is that any VASP must obtain a license from the FSC to operate legally. However, the active moratorium means this requirement cannot currently be fulfilled, effectively banning domestic crypto business operations. The main restriction is this licensing freeze, which has created a temporary state where the law exists but cannot be utilized, placing Belize in a regulatory suspension. This moratorium is scheduled to lift on December 31, 2025, at which point the FSC is expected to begin processing license applications, potentially shifting the country's status to 'Allowed-Regulated' in 2026. Until then, the landscape remains in a gray area where personal activity is permitted but professional, licensed domestic services are unavailable.
Summary Points
I. Regulatory Status
* Belize is classified as a 'Gray-Zone' jurisdiction for cryptocurrency regulation.
* Retail trading and personal ownership of cryptocurrencies by individuals is legal.
* The domestic environment for cryptocurrency businesses is currently under a regulatory moratorium.
II. Key Regulatory Bodies
* Financial Services Commission (FSC): The primary regulator for financial services, including virtual assets.
* Central Bank of Belize: Holds AML/CFT oversight responsibilities and scrutinizes bank transfers related to crypto.
III. Important Legislation
* Financial Services Commission Act, 2023 (Act No. 8 of 2023):
* Enacted on April 15, 2023.
* Defines 'Virtual Assets' and establishes the legal framework.
* Section 81 prohibits conducting Virtual Asset Service Provider (VASP) business without a license.
* Restriction on Virtual Asset Activities (Public Notice FSC/2/PN/012):
* Issued on May 25, 2023.
* Announces a moratorium on issuing VASP licenses until December 31, 2025.
* Ordered existing operators to cease activities by July 2023.
IV. Compliance Requirements
* Any entity wishing to operate as a Virtual Asset Service Provider (VASP) must obtain a license from the Financial Services Commission (FSC).
* No licenses are currently being issued due to the active moratorium.
V. Notable Restrictions or Limitations
* A licensing moratorium is in effect until December 31, 2025.
* Domestic cryptocurrency businesses (exchanges, ATMs, brokers) are banned from operating.
* Residents must use foreign or international exchanges to trade cryptocurrencies.
* Bank transfers involving cryptocurrency entities face strict AML/CFT scrutiny.
VI. Recent Developments or Notes
* The 'Gray-Zone' status is temporary and driven by the active licensing moratorium.
* The moratorium is scheduled to lift on December 31, 2025.
* This is expected to allow the FSC to begin processing applications, potentially shifting Belize's status to 'Allowed-Regulated' in 2026.
* The existing law (Financial Services Commission Act, 2023) provides the framework for future regulation once the moratorium ends.
Full Analysis Report
Full Analysis Report
As of December 2025, Belize occupies a unique 'Gray-Zone' status regarding cryptocurrency. While the act of buying, selling, and holding digital assets is legal for individual retail investors, the infrastructure to do so domestically has been deliberately paused by regulators. The primary governing legislation, the Financial Services Commission Act, 2023 (enacted April 2023), brought virtual assets under the purview of the Financial Services Commission (FSC). Section 81 of this Act explicitly forbids any person from carrying on business involving virtual assets—including exchange, transfer, custody, or administration—without a valid license.
However, the FSC simultaneously issued a critical directive (Public Notice FSC/2/PN/012) establishing a moratorium on the issuance of these licenses. The regulator stated that no licenses for virtual asset activities would be granted until December 31, 2025. This effectively created a ban on domestic service providers. Entities that were operating in Belize prior to April 2023 were ordered to notify the Commission and cease all operations by July 15, 2023. This 'clean slate' approach was designed to allow Belize to overhaul its regulatory framework to meet FATF standards before allowing a regulated market to re-emerge.
For retail traders, this means there are no Belize-regulated exchanges available. Residents wishing to trade must access international platforms that accept Belizean clients. While there is no law criminalizing the user's side of the transaction, the Central Bank of Belize has issued warnings regarding the risks and applies strict AML/CFT checks on fiat transfers destined for crypto platforms. The Central Bank reinforces the FSC's position, clarifying that while personal use isn't banned, the commercial ecosystem is currently frozen.
Looking ahead, the regulatory landscape is poised for a major shift. With the moratorium scheduled to expire at the end of this month (December 31, 2025), the FSC is expected to introduce a new, active licensing regime in early 2026. Until that framework is operational and licenses are actually issued, Belize remains in a transitional gray zone where the activity is legal but the local market is closed.
As of December 2025, Belize occupies a unique 'Gray-Zone' status regarding cryptocurrency. While the act of buying, selling, and holding digital assets is legal for individual retail investors, the infrastructure to do so domestically has been deliberately paused by regulators. The primary governing legislation, the *Financial Services Commission Act, 2023* (enacted April 2023), brought virtual assets under the purview of the Financial Services Commission (FSC). Section 81 of this Act explicitly forbids any person from carrying on business involving virtual assets—including exchange, transfer, custody, or administration—without a valid license. However, the FSC simultaneously issued a critical directive (Public Notice FSC/2/PN/012) establishing a moratorium on the issuance of these licenses. The regulator stated that no licenses for virtual asset activities would be granted until December 31, 2025. This effectively created a ban on domestic service providers. Entities that were operating in Belize prior to April 2023 were ordered to notify the Commission and cease all operations by July 15, 2023. This 'clean slate' approach was designed to allow Belize to overhaul its regulatory framework to meet FATF standards before allowing a regulated market to re-emerge. For retail traders, this means there are no Belize-regulated exchanges available. Residents wishing to trade must access international platforms that accept Belizean clients. While there is no law criminalizing the user's side of the transaction, the Central Bank of Belize has issued warnings regarding the risks and applies strict AML/CFT checks on fiat transfers destined for crypto platforms. The Central Bank reinforces the FSC's position, clarifying that while personal use isn't banned, the commercial ecosystem is currently frozen. Looking ahead, the regulatory landscape is poised for a major shift. With the moratorium scheduled to expire at the end of this month (December 31, 2025), the FSC is expected to introduce a new, active licensing regime in early 2026. Until that framework is operational and licenses are actually issued, Belize remains in a transitional gray zone where the activity is legal but the local market is closed.
Source Evidence
Primary and secondary sources cited in this analysis
"The Commission shall not issue a License for Financial Services Practitioners to any person... related to trading virtual assets... until after December 31st, 2025."
"Section 81 (3) of the FSC Act stipulates that no licenses for virtual assets activities will be issued on or before 31 December 2025."
"A person shall not carry on business... involving virtual assets... without a license."
"Belize has not banned private ownership or personal crypto use. The restrictions apply to business activities involving virtual assets while the licensing regime is still being developed."
"Belize has taken the step to restrict VAs and VASP activities by way of section 81 of its Financial Service Commission Act 2023."
Web Sources (5)
Sources discovered via web search grounding
Search queries used (5)
- Belize Financial Services Commission cryptocurrency regulation
- buying bitcoin in Belize legal status
- Central Bank of Belize cryptocurrency circular
- Belize Securities Industry Act 2021 virtual assets
- Belize VASP regulation status 2024
https://www.centralamerica.com/news/virtual-asset-rules-in-belize/
https://quijano.com/important-notices-from-belizes-financial-services-commission-fsc/
https://www.breakingbelizenews.com/2023/11/12/financial-services-commission-clarifies-belizes-position-on-virtual-assets-and-cryptocurrency/
https://www.centralbank.org.bz/docs/default-source/2.7-compliance/q2---cbb-aml-highlights-.pdf?sfvrsn=fb0349db_3
https://bbcincorp.com/offshore/news/restriction-on-virtual-asset-activities-in-belize