Bolivia
Retail_Trading_Status
- Analysis ID
- #611
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- Created
- 2025-12-12 03:54
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- 06f5ddb3...
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Executive Summary
Retail cryptocurrency trading is legal and formally regulated in Bolivia following the lifting of the complete ban in June 2024. The Central Bank of Bolivia (BCB) authorized the use of electronic payment instruments for crypto assets, while the Financial System Supervisory Authority (ASFI) and Financial Investigations Unit (UIF) have established a comprehensive licensing and AML compliance framework. Virtual Asset Service Providers (VASPs) are now required to register with the UIF and obtain licensing from ASFI, with a compliance deadline currently extended to April 2026.
Key Pillars
Banco Central de Bolivia (BCB): Primary monetary authority that lifted the prohibition on crypto assets and oversees the payment system.
Autoridad de Supervisión del Sistema Financiero (ASFI): Responsible for licensing and supervising Fintech companies and VASPs; manages the registry of authorized entities.
Unidad de Investigaciones Financieras (UIF): Enforces Anti-Money Laundering (AML) and Counter-Terrorism Financing (CFT) rules; registers VASPs as 'Obligated Subjects'.
Landmark Laws
Resolución de Directorio N° 082/2024 (R.D. N° 082/2024) - Enacted: 2024-06-25
- Historic resolution by the Central Bank that repealed the 2020 ban (Resolution 144/2020), explicitly authorizing the use of electronic payment channels for buying and selling virtual assets.
- Source
Supreme Decree on Fintech Regulation (Decreto Supremo N° 5384) - Enacted: 2024-10-01
- Establishes the legal framework for 'Empresas de Tecnología Financiera' (Fintechs), including VASPs, requiring them to constitute as financial entities and obtain ASFI licensing.
UIF Administrative Resolution on VASPs (Resolución Administrativa UIF/19/2025) - Enacted: 2025-04-16
- Designates Virtual Asset Service Providers (VASPs) as 'Obligated Subjects' for AML/CFT purposes, mandating registration with the Financial Investigations Unit.
- Source
ASFI Deadline Extension Resolution (Resolución ASFI N° 1203/2025) - Enacted: 2025-12-02
- Extends the deadline for crypto exchange and fintech license applications to April 30, 2026, allowing existing operators more time to comply with the new regime.
Considerations
Cryptocurrencies are not legal tender; the Boliviano remains the only official currency.
Banks are now permitted to process crypto-related transactions and hold custody of assets.
VASPs face strict AML/KYC requirements and must report suspicious transactions to the UIF.
A 'Controlled Testing Environment' (Sandbox) exists for fintechs, though participation has been low as of late 2025.
Tax treatment falls under general income and capital gains rules as no specific crypto tax law has been enacted yet.
Notes
The analysis date is December 12, 2025. The regulatory environment has shifted dramatically in the last 18 months from a total ban to a regulated regime. The current period is characterized by implementation and compliance, with a deadline extension indicating a pragmatic approach by regulators to allow the industry to adapt.
Remaining Uncertainties
- The exact number of VASPs that will successfully obtain licensing by the April 2026 deadline.
- Specific tax rates and reporting forms for retail crypto capital gains.
- The extent to which traditional Bolivian banks will actually offer crypto custody services in practice.
Detailed Explanation
Detailed Explanation
Retail cryptocurrency trading is legal and formally regulated in Bolivia. This status was established following the landmark decision by the Central Bank of Bolivia (BCB) on June 25, 2024, to lift the previous total ban. The reversal was enacted through Resolución de Directorio N° 082/2024, which explicitly authorized the use of electronic payment instruments for the buying and selling of virtual assets. This action marked a dramatic shift in the country's regulatory posture, transitioning from prohibition to a structured, supervised regime within an 18-month period leading up to the analysis date of December 2025. The current framework is built upon three key regulatory pillars: the BCB as the primary monetary authority overseeing the payment system, the Financial System Supervisory Authority (ASFI) responsible for licensing and supervising Fintech companies and Virtual Asset Service Providers (VASPs), and the Financial Investigations Unit (UIF) which enforces Anti-Money Laundering and Counter-Terrorism Financing rules. The comprehensive legal structure was further solidified by the Supreme Decree on Fintech Regulation (Decreto Supremo N° 5384) enacted on October 1, 2024, which requires VASPs to constitute as financial entities and obtain licensing from ASFI. For compliance, VASPs are designated as 'Obligated Subjects' under UIF Administrative Resolution UIF/19/2025 of April 16, 2025, mandating registration with the UIF and adherence to strict AML/KYC requirements, including reporting suspicious transactions. Recognizing the need for industry adaptation, regulators have adopted a pragmatic approach, as evidenced by ASFI Resolución N° 1203/2025 of December 2, 2025, which extended the deadline for license applications to April 30, 2026. Important restrictions remain, however; cryptocurrencies are not legal tender, with the Boliviano retaining its status as the sole official currency. While banks are now permitted to process crypto transactions and hold custody, and a regulatory sandbox exists for fintech testing, tax treatment for crypto activities currently falls under general income and capital gains rules due to the absence of specific crypto tax legislation.
Summary Points
I. Regulatory Status
* Retail cryptocurrency trading is legal and formally regulated in Bolivia.
* The previous complete ban was lifted in June 2024, establishing a new supervised regime.
* The current period (as of December 2025) is characterized by ongoing implementation and compliance with new regulations.
II. Key Regulatory Bodies
* Banco Central de Bolivia (BCB): The primary monetary authority; lifted the prohibition on crypto assets and oversees the payment system.
* Autoridad de Supervisión del Sistema Financiero (ASFI): Responsible for licensing and supervising Fintech companies and Virtual Asset Service Providers (VASPs); manages the registry of authorized entities.
* Unidad de Investigaciones Financieras (UIF): Enforces Anti-Money Laundering (AML) and Counter-Terrorism Financing (CFT) rules; registers VASPs as 'Obligated Subjects'.
III. Important Legislation
* Resolución de Directorio N° 082/2024 (Enacted: 2024-06-25): Historic BCB resolution that repealed the 2020 ban and authorized the use of electronic payment channels for buying and selling virtual assets.
* Supreme Decree on Fintech Regulation (Decreto Supremo N° 5384) (Enacted: 2024-10-01): Establishes the legal framework for Fintechs, including VASPs, requiring them to constitute as financial entities and obtain ASFI licensing.
* UIF Administrative Resolution on VASPs (Resolución Administrativa UIF/19/2025) (Enacted: 2025-04-16): Designates VASPs as 'Obligated Subjects' for AML/CFT purposes, mandating registration with the UIF.
* ASFI Deadline Extension Resolution (Resolución ASFI N° 1203/2025) (Enacted: 2025-12-02): Extends the deadline for crypto exchange and fintech license applications to April 30, 2026.
IV. Compliance Requirements
* Virtual Asset Service Providers (VASPs) must register with the UIF as obligated subjects.
* VASPs must obtain licensing from ASFI by the compliance deadline.
* VASPs face strict AML/KYC requirements and must report suspicious transactions to the UIF.
* Banks are permitted to process crypto-related transactions and hold custody of assets.
V. Notable Restrictions or Limitations
* Cryptocurrencies are not legal tender; the Boliviano remains the only official currency.
* No specific cryptocurrency tax law has been enacted; tax treatment falls under general income and capital gains rules.
* A 'Controlled Testing Environment' (Sandbox) exists for fintechs, but participation has been reported as low as of late 2025.
VI. Recent Developments or Notes
* The regulatory environment shifted dramatically from a total ban to a regulated regime in the 18 months prior to December 2025.
* The license application deadline extension to April 2026 indicates a pragmatic approach by regulators to allow the industry time to adapt to the new compliance framework.
Full Analysis Report
Full Analysis Report
In a major policy shift, Bolivia transitioned from a strict prohibitionist stance to a regulated environment for cryptocurrencies in mid-2024. For nearly a decade, the Central Bank of Bolivia (BCB) had banned all crypto-related activities under Resolution 144/2020. This changed on June 25, 2024, with the issuance of Board Resolution N° 082/2024, which formally lifted the ban and authorized financial intermediaries to facilitate transactions involving virtual assets. This move was largely driven by the need to modernize the payment system and align with recommendations from the Financial Action Task Force of Latin America (GAFILAT).
Following the legalization, the regulatory framework was rapidly developed throughout late 2024 and 2025. The Financial System Supervisory Authority (ASFI) was tasked with licensing and supervising crypto exchanges and other fintech providers. Under Supreme Decree 5384, these entities are classified as financial technology companies and must adhere to strict operational standards. Simultaneously, the Financial Investigations Unit (UIF) issued Administrative Resolution UIF/19/2025, which designated VASPs as 'Obligated Subjects,' requiring them to implement robust AML/CFT protocols and report to the state.
Despite the clear legal framework, the market is still in a transitional phase. As of December 2025, full compliance remains a challenge for many operators. Recognizing this, ASFI issued Resolution N° 1203/2025, extending the licensing deadline to April 30, 2026. Reports indicate that while over 200 entities were identified as potential licensees, only a small fraction had formally submitted letters of intent by late 2025. This suggests a period of consolidation where unregulated actors may be forced out if they fail to meet the new standards.
For retail investors, this means trading is now fully legal and can be conducted through banking channels. Bolivian banks are authorized to offer custody services and process payments for crypto exchanges, significantly reducing the friction and risk previously associated with peer-to-peer (P2P) trading during the ban era. However, the BCB continues to emphasize that crypto assets are not legal tender and carry no state guarantee, placing the onus of risk entirely on the user.
In a major policy shift, Bolivia transitioned from a strict prohibitionist stance to a regulated environment for cryptocurrencies in mid-2024. For nearly a decade, the Central Bank of Bolivia (BCB) had banned all crypto-related activities under Resolution 144/2020. This changed on June 25, 2024, with the issuance of Board Resolution N° 082/2024, which formally lifted the ban and authorized financial intermediaries to facilitate transactions involving virtual assets. This move was largely driven by the need to modernize the payment system and align with recommendations from the Financial Action Task Force of Latin America (GAFILAT). Following the legalization, the regulatory framework was rapidly developed throughout late 2024 and 2025. The Financial System Supervisory Authority (ASFI) was tasked with licensing and supervising crypto exchanges and other fintech providers. Under Supreme Decree 5384, these entities are classified as financial technology companies and must adhere to strict operational standards. Simultaneously, the Financial Investigations Unit (UIF) issued Administrative Resolution UIF/19/2025, which designated VASPs as 'Obligated Subjects,' requiring them to implement robust AML/CFT protocols and report to the state. Despite the clear legal framework, the market is still in a transitional phase. As of December 2025, full compliance remains a challenge for many operators. Recognizing this, ASFI issued Resolution N° 1203/2025, extending the licensing deadline to April 30, 2026. Reports indicate that while over 200 entities were identified as potential licensees, only a small fraction had formally submitted letters of intent by late 2025. This suggests a period of consolidation where unregulated actors may be forced out if they fail to meet the new standards. For retail investors, this means trading is now fully legal and can be conducted through banking channels. Bolivian banks are authorized to offer custody services and process payments for crypto exchanges, significantly reducing the friction and risk previously associated with peer-to-peer (P2P) trading during the ban era. However, the BCB continues to emphasize that crypto assets are not legal tender and carry no state guarantee, placing the onus of risk entirely on the user.
Source Evidence
Primary and secondary sources cited in this analysis
"Dejar sin efecto la Resolución de Directorio N° 144/2020... habilitando el uso de canales e Instrumentos Electrónicos de Pago (IEP) para operaciones de compra y venta de Activos Virtuales."
"El BCB comunica a la opinión pública que mediante Resolución de Directorio N°082/2024... dejó sin efecto la prohibición."
"Registro de Proveedores de Servicios de Activos Virtuales (PSAV) como Sujetos Obligados."
"The Bolivian Supervisory Authority for the Financial System (ASFI) has extended the deadline for cryptocurrency exchange license applications to April 30, 2026."
"The Central Bank of Bolivia has lifted a blanket ban on using bitcoin and other cryptocurrencies in the national financial system."
Web Sources (12)
Sources discovered via web search grounding
Search queries used (5)
- Banco Central de Bolivia lifts crypto ban resolution 2024
- Bolivia cryptocurrency regulation status 2024 2025
- ASFI Bolivia crypto regulation 2025
- Resolución de Directorio N° 082/2024 Banco Central de Bolivia
- UIF Bolivia crypto AML requirements
https://www.binance.com/en/square/post/25782777501066
https://blockchaininternacional.com/evolucion-del-marco-regulatorio-de-los-criptoactivos-en-bolivia/
https://news.bitcoin.com/central-bank-of-bolivia-unbans-bitcoin-from-the-nations-financial-ecosystem/
https://www.bcb.gob.bo/webdocs/10_notas_prensa/CP_35%20NormativaActivosVirtuales.pdf
https://ahoraelpueblo.bo/index.php/nacional/economia/bcb-autoriza-el-uso-de-medios-electronicos-de-pago-para-la-compra-y-venta-de-activos-virtuales
https://estudionunes.com.ar/bolivia-a-step-towards-financial-innovation/
https://www.bitget.com/news/detail/12560604839014
https://longbridge.com/en/news/268262213
https://emba.com.bo/importante-actualizacion-en-el-mercado-de-criptoactivos-en-bolivia/
https://www.ccn.com/education/crypto/bolivias-stance-on-cryptocurrency-key-policies-and-regulation/
https://bravenewcoin.com/insights/bolivia-makes-historic-move-to-integrate-crypto-and-stablecoins-into-banking-system
https://phemex.com/news/article/bolivia-extends-crypto-exchange-license-deadline-to-april-2026-41544