Guam
Retail_Trading_Status
- Analysis ID
- #675
- Version
- Latest
- Created
- 2025-12-12 04:20
- Run
- 5e49a80a...
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- Workflow Stage
- Step 1
Executive Summary
Retail cryptocurrency trading in Guam is legal and regulated under a dual framework of US federal law and local territorial statutes. The Guam Department of Revenue and Taxation, through the Banking and Insurance Commissioner, requires cryptocurrency service providers to obtain a Money Transmitter License (MTL) to operate legally. Additionally, as a US territory, Guam falls under the jurisdiction of federal regulators like FinCEN, the SEC, and the CFTC, with recent federal legislation (the 'Genius Act' of 2025) further solidifying the regulatory landscape for digital assets.
Key Pillars
Guam Banking and Insurance Commissioner (Primary Local Regulator)
Guam Department of Revenue and Taxation (Licensing Authority)
Financial Crimes Enforcement Network (FinCEN) (Federal AML/KYC Oversight)
Money Transmitter License (MTL) (Required for crypto transmission/exchange)
US Securities and Exchange Commission (SEC) (Federal Securities Oversight)
Landmark Laws
Guam Monetary and Taxation Act (11 GCA Finance & Taxation)
- Local statute governing financial institutions and money transmitters. It requires any entity engaging in the business of money transmission, including 'e-currency' and foreign monetary swaps, to hold a valid license and post a surety bond.
- Source
Genius Act (Federal US Law) (H.R. / S. Legislation (2025)) - Enacted: 2025-07-18
- Comprehensive US federal legislation establishing a regulatory framework for stablecoins, mandating 100% reserve backing, and creating clear federal and state licensing pathways for digital asset firms.
Bank Secrecy Act (Federal) (31 U.S.C. § 5311 et seq.) - Enacted: 1970-01-01
- Federal AML law requiring Money Services Businesses (MSBs), including crypto exchanges in Guam, to register with FinCEN, implement AML programs, and report suspicious activity.
- Source
Considerations
Dual Licensing: Crypto businesses must register federally as MSBs with FinCEN and obtain a local Money Transmitter License from the Guam Department of Revenue and Taxation.
Enforcement Risk: Operating without a license is a criminal offense. In 2024, a Guam resident was sentenced to 30 months in federal prison for operating an unlicensed Bitcoin exchange business.
Taxation: Crypto assets are treated as property for tax purposes (following US IRS guidance). Capital gains tax applies to profitable trades.
Banking Access: While legal, local banking relationships can be strict; many residents use major US-based exchanges (e.g., Coinbase, Kraken) that are licensed to serve the territory.
Notes
The analysis incorporates the 'Genius Act' of July 2025, a significant federal development in the provided timeline. Users should note that as a US territory, Guam's regulatory status is inextricably linked to US federal policy, and any changes in Washington D.C. (FinCEN/SEC) immediately impact Guam.
Remaining Uncertainties
- Specifics of the local 'e-currency' license application process (e.g., approval rates, specific crypto-focused amendments to the MTL application).
- Whether the Guam Banking Commissioner has issued a specific 'Virtual Currency' regulation document distinct from the general Money Transmitter Law, or if they rely solely on interpretation of existing statutes.
Detailed Explanation
Detailed Explanation
Retail cryptocurrency trading in Guam is legal and regulated under a dual framework of US federal law and local territorial statutes. The regulatory environment is governed by both the local Guam government and multiple US federal agencies, creating a comprehensive oversight structure for digital asset activities. The primary local authority is the Guam Department of Revenue and Taxation, specifically through the Banking and Insurance Commissioner, which requires cryptocurrency service providers to obtain a Money Transmitter License (MTL) to operate legally. As a US territory, Guam also falls under the jurisdiction of federal regulators including the Financial Crimes Enforcement Network (FinCEN), the US Securities and Exchange Commission (SEC), and the Commodity Futures Trading Commission (CFTC). This dual regulatory system means crypto businesses must comply with both territorial and federal requirements simultaneously.
The foundational legal framework consists of several key pieces of legislation. Locally, the Guam Monetary and Taxation Act (11 GCA Finance & Taxation) governs financial institutions and money transmitters, explicitly requiring any entity engaging in money transmission, including 'e-currency' and foreign monetary swaps, to hold a valid license and post a surety bond. Federally, the Bank Secrecy Act (31 U.S.C. § 5311 et seq.), enacted in 1970, requires Money Services Businesses (MSBs), which include crypto exchanges operating in Guam, to register with FinCEN, implement anti-money laundering (AML) programs, and report suspicious activity. A significant recent development is the federal 'Genius Act' (H.R. / S. Legislation), enacted on July 18, 2025, which establishes a comprehensive regulatory framework for stablecoins, mandates 100% reserve backing, and creates clear federal and state licensing pathways for digital asset firms, further solidifying the regulatory landscape.
Compliance for cryptocurrency businesses operating in Guam is mandatory and carries significant enforcement risk. Entities must engage in dual licensing: registering federally as an MSB with FinCEN and obtaining a local Money Transmitter License from the Guam Department of Revenue and Taxation. Operating without a license is a criminal offense, as demonstrated in 2024 when a Guam resident was sentenced to 30 months in federal prison for operating an unlicensed Bitcoin exchange business. For taxation, crypto assets are treated as property following US IRS guidance, meaning capital gains tax applies to profitable trades. While cryptocurrency activities are legal, practical limitations exist, such as strict local banking relationships that lead many residents to use major US-based exchanges like Coinbase and Kraken, which are licensed to serve the territory. The regulatory status of Guam remains inextricably linked to US federal policy, meaning any changes from Washington D.C. immediately impact the territory.
Summary Points
I. Regulatory Status
* Retail cryptocurrency trading is legal and regulated in Guam.
* It operates under a dual framework of US federal law and local territorial statutes.
* The status is classified as Allowed-Regulated.
II. Key Regulatory Bodies
* Local Regulators:
* Guam Banking and Insurance Commissioner (Primary Local Regulator).
* Guam Department of Revenue and Taxation (Licensing Authority).
* US Federal Regulators:
* Financial Crimes Enforcement Network (FinCEN) (Federal AML/KYC Oversight).
* US Securities and Exchange Commission (SEC) (Federal Securities Oversight).
* Commodity Futures Trading Commission (CFTC) (Federal Oversight).
III. Important Legislation
* Guam Monetary and Taxation Act (11 GCA Finance & Taxation)
* Local statute governing financial institutions and money transmitters.
* Requires any entity in the business of money transmission, including 'e-currency' and foreign monetary swaps, to hold a valid license and post a surety bond.
* Bank Secrecy Act (Federal) (31 U.S.C. § 5311 et seq.) - Enacted: 1970-01-01
* Federal AML law requiring Money Services Businesses (MSBs), including crypto exchanges, to register with FinCEN, implement AML programs, and report suspicious activity.
* Genius Act (Federal US Law) (H.R. / S. Legislation (2025)) - Enacted: 2025-07-18
* Comprehensive US federal legislation establishing a regulatory framework for stablecoins, mandating 100% reserve backing, and creating clear federal and state licensing pathways for digital asset firms.
IV. Compliance Requirements
* Licensing:
* Cryptocurrency service providers must obtain a local Money Transmitter License (MTL) from the Guam Department of Revenue and Taxation.
* They must also register federally as a Money Services Business (MSB) with FinCEN.
* AML/KYC:
* Entities must comply with federal AML requirements under the Bank Secrecy Act.
* Taxation:
* Crypto assets are treated as property for tax purposes (following US IRS guidance).
* Capital gains tax applies to profitable trades.
V. Notable Restrictions or Limitations
* Dual Licensing is mandatory; businesses must comply with both local and federal requirements.
* Operating without a license is a criminal offense. In 2024, a Guam resident was sentenced to 30 months in federal prison for operating an unlicensed Bitcoin exchange business.
* While legal, local banking relationships can be strict; many residents use major US-based exchanges (e.g., Coinbase, Kraken) that are licensed to serve the territory.
VI. Recent Developments or Notes
* The analysis incorporates the 'Genius Act' of July 2025, a significant federal development.
* As a US territory, Guam's regulatory status is inextricably linked to US federal policy; any changes from Washington D.C. (FinCEN/SEC) immediately impact Guam.
Full Analysis Report
Full Analysis Report
Retail cryptocurrency trading in Guam is Allowed-Regulated, characterized by a strict adherence to both US federal regulations and local money transmission laws. As an unincorporated territory of the United States, Guam is subject to the jurisdiction of major US financial regulators, including FinCEN, the SEC, and the CFTC. This means that for all practical purposes, the regulatory environment for a retail trader in Guam mirrors that of the mainland United States, with the added layer of local territorial licensing.
The primary local regulator is the Guam Banking and Insurance Commissioner, operating under the Department of Revenue and Taxation. Entities wishing to offer crypto exchange or custody services to Guam residents must obtain a Money Transmitter License (MTL). Recent guidance and legal interpretations confirm that 'e-currency' and virtual asset transmission fall squarely under the definition of money transmission in the Guam Monetary and Taxation Act. This local license is not merely a formality; it requires proof of financial solvency (often a $50,000 surety bond) and strict compliance with AML/KYC standards.
Enforcement of these regulations is active and severe. A landmark case in January 2024 (United States v. Weymouth) saw a Guam resident sentenced to 30 months in federal prison for operating an unlicensed money transmitting business involving Bitcoin. The defendant had failed to register with FinCEN and comply with federal regulations while soliciting cash and crypto from local clients. This case serves as a stark warning that while retail trading is permitted, acting as an intermediary without proper licensing is a serious criminal offense.
The regulatory landscape was further clarified in 2025 with the passage of the federal 'Genius Act', signed into law in July 2025. This legislation provided a comprehensive framework for stablecoins and digital assets across the US and its territories, reducing ambiguity regarding the classification of certain assets. Consequently, Guam residents have access to a wide range of regulated platforms (such as Coinbase, Kraken, and Bitget) that comply with these federal and local requirements, ensuring a relatively safe and structured environment for retail investors.
Retail cryptocurrency trading in Guam is **Allowed-Regulated**, characterized by a strict adherence to both US federal regulations and local money transmission laws. As an unincorporated territory of the United States, Guam is subject to the jurisdiction of major US financial regulators, including FinCEN, the SEC, and the CFTC. This means that for all practical purposes, the regulatory environment for a retail trader in Guam mirrors that of the mainland United States, with the added layer of local territorial licensing. The primary local regulator is the **Guam Banking and Insurance Commissioner**, operating under the Department of Revenue and Taxation. Entities wishing to offer crypto exchange or custody services to Guam residents must obtain a **Money Transmitter License (MTL)**. Recent guidance and legal interpretations confirm that 'e-currency' and virtual asset transmission fall squarely under the definition of money transmission in the Guam Monetary and Taxation Act. This local license is not merely a formality; it requires proof of financial solvency (often a $50,000 surety bond) and strict compliance with AML/KYC standards. Enforcement of these regulations is active and severe. A landmark case in January 2024 (United States v. Weymouth) saw a Guam resident sentenced to 30 months in federal prison for operating an unlicensed money transmitting business involving Bitcoin. The defendant had failed to register with FinCEN and comply with federal regulations while soliciting cash and crypto from local clients. This case serves as a stark warning that while retail trading is permitted, acting as an intermediary without proper licensing is a serious criminal offense. The regulatory landscape was further clarified in 2025 with the passage of the federal **'Genius Act'**, signed into law in July 2025. This legislation provided a comprehensive framework for stablecoins and digital assets across the US and its territories, reducing ambiguity regarding the classification of certain assets. Consequently, Guam residents have access to a wide range of regulated platforms (such as Coinbase, Kraken, and Bitget) that comply with these federal and local requirements, ensuring a relatively safe and structured environment for retail investors.
Source Evidence
Primary and secondary sources cited in this analysis
"Operating as a cryptocurrency exchanger... he failed to register with FinCEN and failed to comply with Federal regulations governing money transmitters."
"The Banking and Insurance Board has the power to define any term as maybe reasonably necessary or appropriate for the administration of laws relating to banking and insurance."
"The Guam Department of Revenue and Taxation... oversees the issuance of e-currency licenses... anyone or any organization that sells foreign currency notes or transfers money... is supposed to get a monetary trading license."
"On Friday, Trump signed the 'Genius Act' — the first major federal law focused on cryptocurrency... creates a federal regulatory framework for stablecoins."
"Under the Financial Crimes Enforcement Network (FinCEN), crypto miners are considered money transmitters, so they may be subject to the laws that govern that activity."
Web Sources (7)
Sources discovered via web search grounding
Search queries used (5)
- buying bitcoin in Guam legal
- Guam Money Transmitter license cryptocurrency
- Guam blockchain legislation 2024 2025
- Guam Banking and Insurance Commissioner cryptocurrency guidance
- Guam cryptocurrency regulation retail trading status
https://faisalkhan.com/solutions/licensing/money-transmitter-license-mtl/us-cryptocurrency-regulation/
https://www.ncsl.org/financial-services/cryptocurrency-digital-or-virtual-currency-and-digital-assets-2025-legislation
https://www.congress.gov/committee-report/119th-congress/senate-report/84/1
https://guamnewsnow.com/news/3457/new-law-expected-to-deliver-big-changes-for-crypto-in-the-u-s/
https://www.thomsonreuters.com/en-us/posts/wp-content/uploads/sites/20/2022/04/Cryptos-Report-Compendium-2022.pdf
https://www.eternitylaw.com/news/guam-money-transmitter-license/
https://www.secretservice.gov/newsroom/releases/2024/01/guam-cryptocurrency-broker-sentenced-30-months-federal-prison-55-million