Benin
Retail_Trading_Status
- Analysis ID
- #609
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- 2025-12-12 03:54
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Executive Summary
Retail cryptocurrency trading in Benin operates in a regulatory gray zone. While the country recently enacted Law No. 2024-01 (February 2024) which formally defines 'Virtual Assets' and mandates anti-money laundering (AML) compliance for Virtual Asset Service Providers (VASPs), a functional licensing regime has not yet been implemented. Consequently, no local exchanges are currently licensed, and the Ministry of Economy and Finance has explicitly banned unauthorized public offerings and crypto-investment schemes via a February 2023 communiqué. Individual trading on foreign platforms appears tolerated but is not explicitly protected, and crypto assets are taxed as 'intangible assets' under the General Tax Code.
Key Pillars
CENTIF-Benin (Cellule Nationale de Traitement des Informations Financières) - Primary AML/CFT authority enforcing Law No. 2024-01.
Ministry of Economy and Finance - Issues warnings and bans on unauthorized financial activities.
ANSSFD (Agence Nationale de Surveillance des Systèmes Financiers Décentralisés) - Monitors unauthorized fundraising and microfinance-like crypto schemes.
BCEAO (Central Bank of West African States) - Regional central bank for WAEMU; historically hostile to crypto, viewing it as non-legal tender.
Direction Générale des Impôts (DGI) - Administers tax rules treating crypto as intangible property.
Landmark Laws
Law No. 2024-01 (Uniform Law on AML/CFT/FP) (Loi n° 2024-01) - Enacted: 2024-02-20
- Defines 'Virtual Assets' and requires Virtual Asset Service Providers (VASPs) to implement AML/CFT measures, conduct customer due diligence (KYC), and obtain authorization (though the licensing process remains unclear).
- Source
Communiqué on Unauthorized Public Offerings (Communiqué du 15 Février 2023) - Enacted: 2023-02-15
- Explicitly prohibits individuals and entities from collecting funds from the public for 'online trading or crypto-assets' without prior authorization, warning of legal prosecution for offenders.
- Source
General Tax Code (Code Général des Impôts) (CGI 2022 (Updated 2024)) - Enacted: 2022-01-01
- Classifies cryptocurrencies as 'intangible assets'. Gains are subject to Capital Gains Tax (15%) and/or Personal Income Tax (0-35% progressive scale) depending on the nature of the activity.
- Source
Considerations
Tax Treatment: Crypto is taxed as 'intangible assets' (biens incorporels). Capital gains tax is set at 15%, while professional trading income may be taxed up to 35%.
Licensing Gap: Although Law 2024-01 requires VASPs to be authorized, reports indicate no clear process exists and no licenses have been issued as of mid-2025.
Scam Risk: The government is highly alert to 'Ponzi-like' crypto investment schemes (e.g., Cameo Shell case), leading to strict enforcement against unauthorized solicitation.
Regional Restrictions: As a WAEMU member, Benin uses the CFA Franc (XOF). The regional central bank (BCEAO) does not recognize crypto as legal tender and restricts banks from facilitating crypto transactions.
Notes
The '2025' dates in some secondary sources reflect the current simulated time context. Benin appears to be in a transition phase: it has the primary legislation (Law 2024-01) to be 'Allowed-Regulated', but lacks the implementation (licensing authority/process) to leave the 'Gray-Zone'. Retail investors should be extremely cautious of local investment schemes due to the government's active crackdown on unauthorized fundraising.
Remaining Uncertainties
- When will the specific decree or circular detailing the VASP licensing process be published?
- Does the 'preliminary approval' mentioned in Law 2024-01 allow for temporary legal operation, or is it currently impossible to obtain?
- Will the BCEAO issue a new regional directive that overrides or complements Benin's national AML law regarding crypto banking access?
Detailed Explanation
Detailed Explanation
Retail cryptocurrency trading in Benin operates in a regulatory gray zone. While the country has taken a significant step towards formal regulation by enacting Law No. 2024-01 in February 2024, which defines 'Virtual Assets' and mandates anti-money laundering and combating the financing of terrorism (AML/CFT) compliance for Virtual Asset Service Providers (VASPs), a functional licensing regime has not yet been implemented. This legislative gap means that no local cryptocurrency exchanges are currently licensed or authorized to operate. The Ministry of Economy and Finance has reinforced its cautious stance through a communiqué issued on February 15, 2023, which explicitly bans unauthorized public offerings and crypto-investment schemes, warning of legal prosecution for offenders. Consequently, individual trading on foreign platforms appears to be tolerated but is not explicitly protected by law, leaving participants without formal consumer safeguards. The regulatory framework is primarily enforced by CENTIF-Benin, the national financial intelligence unit responsible for AML/CFT oversight under the new law. The Agence Nationale de Surveillance des Systèmes Financiers Décentralisés (ANSSFD) monitors unauthorized fundraising and microfinance-like crypto schemes, reflecting government concerns over fraudulent activities such as the 'Cameo Shell' case. The regional central bank, the Central Bank of West African States (BCEAO), maintains a historically hostile view of cryptocurrencies, refusing to recognize them as legal tender and restricting traditional banks from facilitating crypto transactions. From a taxation perspective, the General Tax Code classifies cryptocurrencies as 'intangible assets,' subjecting gains to either a 15% capital gains tax or personal income tax on a progressive scale from 0% to 35%, depending on whether the activity is deemed professional or occasional. Benin is thus in a transitional phase, having established the primary legal framework for a regulated environment but lacking the necessary administrative processes to move out of the gray zone, creating significant uncertainty and risk for both service providers and retail investors.
Summary Points
I. Regulatory Status
* Overall Status: Gray-Zone
* Key Characteristic: A foundational law (Law No. 2024-01) is in place, but the licensing system for Virtual Asset Service Providers (VASPs) is not yet operational, creating a regulatory vacuum.
* Retail Trading: Individual trading on foreign platforms is tolerated but not explicitly protected or regulated.
* Local Offerings: Unauthorized public offerings and crypto-investment schemes are explicitly banned and actively prosecuted.
II. Key Regulatory Bodies
* CENTIF-Benin (Cellule Nationale de Traitement des Information Financières): The primary authority for Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) enforcement for VASPs under Law No. 2024-01.
* Ministry of Economy and Finance: Issues public warnings and bans on unauthorized financial activities, such as the February 2023 communiqué.
* ANSSFD (Agence Nationale de Surveillance des Systèmes Financiers Décentralisés): Monitors and acts against unauthorized fundraising and microfinance-like crypto schemes.
* BCEAO (Central Bank of West African States): The regional central bank for the West African Economic and Monetary Union (WAEMU); it does not recognize cryptocurrency as legal tender and restricts banking sector involvement.
* Direction Générale des Impôts (DGI): Administers tax rules, treating crypto as intangible property under the General Tax Code.
III. Important Legislation
* Law No. 2024-01 (Uniform Law on AML/CFT): Enacted on February 20, 2024. This law formally defines 'Virtual Assets' and requires VASPs to implement AML/CFT measures, conduct customer due diligence (KYC), and obtain authorization. However, the process for authorization remains unclear.
* Communiqué on Unauthorized Public Offerings (February 15, 2023): Explicitly prohibits individuals and entities from collecting funds from the public for 'online trading or crypto-assets' without prior authorization, warning of legal prosecution.
* General Tax Code (2022, updated 2024): Classifies cryptocurrencies as 'intangible assets.' Gains are subject to either a 15% Capital Gains Tax or a progressive Personal Income Tax (0-35%), depending on the nature of the trading activity.
IV. Compliance Requirements
* For VASPs: Required to comply with AML/CFT standards and conduct KYC under Law No. 2024-01, but cannot currently obtain a license as the regime is not implemented.
* For Individuals: Tax obligations apply to gains from crypto activities as per the General Tax Code.
V. Notable Restrictions or Limitations
* Licensing Gap: No local exchanges are licensed because the authorization process for VASPs has not been established.
* Ban on Unauthorized Offerings: Strict enforcement against any form of public fundraising for crypto schemes.
* Regional Banking Restrictions: The BCEAO's stance prevents traditional banks from facilitating cryptocurrency transactions.
* Scam Risk: The government is highly alert to Ponzi-like schemes, leading to a harsh regulatory posture towards unauthorized activities.
VI. Recent Developments or Notes
* Benin is in a transition phase, moving from a completely unregulated space towards a regulated one with the passage of Law No. 2024-01.
* The '2025' dates referenced in some contexts indicate the current simulated timeframe, highlighting that the licensing gap persists.
* Retail investors are advised to be extremely cautious of local investment schemes due to the government's active crackdown.
Full Analysis Report
Full Analysis Report
The regulatory status of cryptocurrency in Benin is best classified as a 'Gray-Zone'. This determination stems from the disconnect between the legislative framework and operational reality. On paper, Benin has moved ahead of many regional peers by enacting Law No. 2024-01 on February 20, 2024. This law, which harmonizes Benin's AML framework with WAEMU directives, explicitly defines 'Virtual Assets' and places Virtual Asset Service Providers (VASPs) under the supervision of the financial intelligence unit, CENTIF. It mandates that VASPs perform due diligence and obtain 'preliminary approval' or authorization to operate.
However, in practice, a legal market for retail trading does not exist. As of late 2025, reports indicate that no licenses have been issued, and the specific regulatory texts detailing the licensing process for exchanges remain absent or non-operational. This leaves domestic crypto businesses in a precarious position where they are legally required to be licensed but practically unable to obtain one. Consequently, most retail activity occurs informally or via offshore platforms that are outside the direct reach of Beninese regulators.
The government's stance is further complicated by a strict prohibition on unauthorized fundraising. A Communiqué issued by the Ministry of Economy and Finance on February 15, 2023, explicitly banned the 'illegal collection of funds' related to online trading and crypto-assets. This was a direct response to fraudulent schemes (such as 'Cameo Shell') that victimized thousands. The communiqué threatened judicial proceedings against any entity soliciting crypto investments without authorization from the ANSSFD or the Regional Council for Public Savings and Financial Markets (CREPMF).
Taxation is one area with clearer guidance. The Directorate General of Taxes (DGI) applies the General Tax Code to crypto assets, classifying them as 'intangible assets'. Retail investors are liable for a 15% capital gains tax on profits, while frequent traders may face personal income tax rates up to 35%. Despite this fiscal clarity, the lack of banking integration—driven by the BCEAO's restrictive regional monetary policy—means that converting crypto to fiat (CFA Franc) often requires peer-to-peer (P2P) methods rather than direct bank transfers.
The regulatory status of cryptocurrency in Benin is best classified as a 'Gray-Zone'. This determination stems from the disconnect between the legislative framework and operational reality. On paper, Benin has moved ahead of many regional peers by enacting Law No. 2024-01 on February 20, 2024. This law, which harmonizes Benin's AML framework with WAEMU directives, explicitly defines 'Virtual Assets' and places Virtual Asset Service Providers (VASPs) under the supervision of the financial intelligence unit, CENTIF. It mandates that VASPs perform due diligence and obtain 'preliminary approval' or authorization to operate. However, in practice, a legal market for retail trading does not exist. As of late 2025, reports indicate that no licenses have been issued, and the specific regulatory texts detailing the licensing process for exchanges remain absent or non-operational. This leaves domestic crypto businesses in a precarious position where they are legally required to be licensed but practically unable to obtain one. Consequently, most retail activity occurs informally or via offshore platforms that are outside the direct reach of Beninese regulators. The government's stance is further complicated by a strict prohibition on unauthorized fundraising. A Communiqué issued by the Ministry of Economy and Finance on February 15, 2023, explicitly banned the 'illegal collection of funds' related to online trading and crypto-assets. This was a direct response to fraudulent schemes (such as 'Cameo Shell') that victimized thousands. The communiqué threatened judicial proceedings against any entity soliciting crypto investments without authorization from the ANSSFD or the Regional Council for Public Savings and Financial Markets (CREPMF). Taxation is one area with clearer guidance. The Directorate General of Taxes (DGI) applies the General Tax Code to crypto assets, classifying them as 'intangible assets'. Retail investors are liable for a 15% capital gains tax on profits, while frequent traders may face personal income tax rates up to 35%. Despite this fiscal clarity, the lack of banking integration—driven by the BCEAO's restrictive regional monetary policy—means that converting crypto to fiat (CFA Franc) often requires peer-to-peer (P2P) methods rather than direct bank transfers.
Source Evidence
Primary and secondary sources cited in this analysis
"Au sens de la présente loi... actif virtuel : représentation numérique d'une valeur qui peut être échangée ou transférée par un procédé numérique."
"Il m'est revenu que des personnes... collectent des capitaux... Le Ministre de l'Economie et des Finances invite les promoteurs... de cesser immédiatement... en rapport avec ces placements en ligne ou sur les cryptoactifs."
"Les cryptomonnaies sont classées comme des actifs incorporels."
"In February 2024, it passed Law No. 2024-01... This targets VASPs... But as of 2025, there's still no clear process for full licencing."
"Benin passed Law No. 2024-01... mandated that prospective VASPs shall obtain preliminary approval... before providing services."
"The capital gains tax rate is 15%."
Web Sources (5)
Sources discovered via web search grounding
Search queries used (13)
- Benin crypto tax laws
- legal status of bitcoin in Benin
- UEMOA WAEMU crypto regulation status
- Benin cryptocurrency regulation 2024 2025
- BCEAO cryptocurrency regulation circular 2024
- Loi relative à la lutte contre le blanchiment de capitaux Benin 2024
- "Law No. 2024-01" Benin virtual assets
- Loi n° 2024-01 Benin crypto
- Benin VASP regulation 2024
- CENTIF Benin crypto communiqué
- Benin crypto tax rate capital gains
- Benin Law No. 2024-01 crypto tax
- Code Général des Impôts Benin crypto
https://techcabal.com/2025/08/06/crypto-licensing-in-africa/
https://blog.upay.best/crypto-adoption/benin-republic/
https://coinledger.io/blog/cryptocurrency-tax-rates
https://university.heavnn.io/cryptocurrency-taxes-in-benin/
https://centif.bj/article/6391ee70-162a-11f0-b54c-d1ef77c4515b