Brunei

The regulatory status of cryptocurrency in Brunei is best classified as a 'Gray-Zone'. The Brunei Darussalam Central Bank (BDCB), formerly known as Autoriti Monetari Brunei Darussalam (AMBD), has maintained a cautious stance since 2017. While there is no explicit law criminalizing the possession or trading of cryptocurrencies by individual retail investors, the government has not established a comprehensive licensing framework that allows crypto exchanges to operate legally and openly. Consequently, no licensed domestic exchanges exist, and the regulator actively warns the public against dealing with unlicensed entities.

A significant legal development occurred in February 2023 with the gazetting of the *Criminal Asset Recovery (Amendment) Order, 2023*. This legislation expanded the definition of 'financial institution' to explicitly include entities providing virtual asset services, such as exchange between virtual assets and fiat currencies, transfer of virtual assets, and safekeeping. This amendment aligns Brunei's framework with FATF standards, theoretically requiring any VASP operating in the country to register and comply with strict AML/CFT obligations. However, as of late 2025, this has not translated into a public register of licensed crypto exchanges, suggesting the regime is primarily for monitoring and enforcement rather than facilitation.

The banking sector remains restricted regarding cryptocurrency. The BDCB has repeatedly emphasized that digital tokens are not legal tender and operate independently of the monetary authority. Financial institutions are generally risk-averse and may block transactions related to crypto exchanges to comply with the central bank's risk guidance. The BDCB maintains an 'Alert List' of unauthorized financial service providers, and while this list often targets scams, it reinforces the environment where operating a financial service without a license is prohibited.

For retail investors, the environment is one of 'buyer beware'. Without local regulated platforms, Bruneians typically access the market through offshore exchanges, which falls outside the BDCB's protection. There is no specific tax regime for cryptocurrencies; Brunei generally does not tax capital gains for individuals, but frequent trading could theoretically be construed as income-generating business activity subject to corporate tax rules. The lack of clear guidelines on this front adds to the overall regulatory uncertainty.