Guyana
Retail_Trading_Status
- Analysis ID
- #682
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- 2025-12-12 04:22
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Executive Summary
Retail cryptocurrency trading in Guyana is currently in a regulatory gray zone characterized by a temporary prohibition on commercial operations. The Guyana Compliance Commission Act 2023 (Section 72) explicitly prohibits the use of virtual assets as a means of payment and the operation of Virtual Asset Service Providers (VASPs) until at least December 31, 2025. While individual possession is not criminalized under a blanket ban, the infrastructure for trading is legally restricted, and banks are prohibited from processing crypto-related transactions. The government is using this moratorium to prepare a comprehensive regulatory framework, having already amended the AML/CFT Act to classify VASPs as reporting entities for future supervision.
Key Pillars
Primary Regulator: Guyana Compliance Commission (GCC) - designated supervisor for VASPs once the moratorium lifts.
Bank of Guyana (BoG): Enforces banking sector restrictions; prohibits banks from opening accounts for or transacting with VASPs.
Financial Intelligence Unit (FIU): Monitors AML/CFT risks; conducted the National Risk Assessment identifying crypto as a high-risk sector.
AML/CFT Framework: The Anti-Money Laundering and Countering the Financing of Terrorism (Amendment) Act 2023 defines VASPs as reporting entities, setting the stage for future regulation.
Landmark Laws
Guyana Compliance Commission Act 2023 (Act No. 14 of 2023) - Enacted: 2023-08-16
- Establishes the Guyana Compliance Commission. Section 72 specifically places a prohibition on the use of virtual assets and the operation of VASPs in Guyana until December 31, 2025 (or a later date set by the Minister).
- Source
Anti-Money Laundering and Countering the Financing of Terrorism (Amendment) Act 2023 (Act No. 15 of 2023) - Enacted: 2023-08-03
- Amends the principal Act to include definitions for 'Virtual Assets' and 'Virtual Asset Service Providers' (VASPs) in line with FATF standards, classifying them as reporting entities subject to AML/CFT obligations once operations are permitted.
- Source
Bank of Guyana Circulars (Various) (N/A)
- Directives prohibiting local banks and financial institutions from opening accounts for crypto exchanges or facilitating wire transfers to/from VASPs due to AML/CFT risks.
- Source
Considerations
Moratorium on Operations: No crypto exchange can legally operate or register in Guyana until at least 2026.
Banking Blockade: Local banks will not process transfers to crypto platforms; users attempting to use local cards/accounts risk account closure.
Tax Ambiguity: While no specific crypto tax exists, the Guyana Revenue Authority (GRA) applies general Capital Gains Tax (20%) or Income Tax (25%) principles to any declared profits.
Legal Tender Status: Crypto is explicitly not legal tender and cannot be used for payments for goods/services under the current prohibition.
Future Licensing: A licensing regime is expected to launch post-2025 under the Guyana Compliance Commission.
Notes
The status is unique because it is a 'legislated gray zone'—a temporary prohibition designed to allow the regulatory framework to catch up. This is distinct from a permanent ban. The date 'December 31, 2025' is critical for future reassessment.
Remaining Uncertainties
- Does the 'prohibition on use' in Section 72 extend to individual P2P trading or holding in foreign wallets, or is it strictly for commercial payment/settlement?
- Will the moratorium definitely expire on Dec 31, 2025, or will the Minister extend it further?
- Specific tax guidelines for crypto assets are still absent, relying on interpretation of general tax law.
Detailed Explanation
Detailed Explanation
Retail cryptocurrency trading in Guyana is currently in a state of legislated prohibition, a specific type of regulatory gray zone. This status is not due to a lack of laws but is explicitly mandated by the Guyana Compliance Commission Act 2023. Section 72 of this Act establishes a temporary moratorium, prohibiting the use of virtual assets as a means of payment and banning the operation of Virtual Asset Service Providers (VASPs) until at least December 31, 2025. This moratorium is a strategic pause, allowing the government time to develop a comprehensive regulatory framework. While individual possession of cryptocurrencies is not criminalized, the commercial infrastructure necessary for trading is legally restricted. The Bank of Guyana has enforced this prohibition within the banking sector by issuing circulars that direct financial institutions to refrain from opening accounts for crypto exchanges or processing transactions related to VASPs, effectively creating a banking blockade. The government has utilized this period to lay the groundwork for future regulation, notably through the Anti-Money Laundering and Countering the Financing of Terrorism (Amendment) Act 2023. This legislation amends the principal Act to incorporate definitions for 'Virtual Assets' and 'VASPs' in alignment with Financial Action Task Force (FATF) standards, formally classifying VASPs as reporting entities that will be subject to Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) obligations once the moratorium is lifted. The Guyana Compliance Commission (GCC) is designated as the primary future supervisor for VASPs. The Financial Intelligence Unit (FIU) has also been active, having conducted a National Risk Assessment that identified the crypto sector as high risk. Looking beyond 2025, the expectation is for a formal licensing regime to be established under the GCC. In the interim, cryptocurrencies are not legal tender and their use for payments is illegal. From a tax perspective, there is no specific crypto tax law; instead, the Guyana Revenue Authority (GRA) would apply general principles, meaning profits could be subject to either Capital Gains Tax at 20% or Income Tax at 25% if declared.
Summary Points
I. Regulatory Status
* Overall Status: Gray-Zone, characterized by a legislated moratorium.
* Key Feature: A temporary prohibition on commercial crypto operations is in effect until at least December 31, 2025, as per the Guyana Compliance Commission Act 2023.
* Distinction: This is a planned regulatory pause, not a permanent ban, intended to allow for framework development.
II. Key Regulatory Bodies
* Guyana Compliance Commission (GCC): The designated future primary regulator and supervisor for Virtual Asset Service Providers (VASPs) once the moratorium ends.
* Bank of Guyana (BoG): Enforces the prohibition within the banking sector, preventing financial institutions from dealing with VASPs.
* Financial Intelligence Unit (FIU): Monitors AML/CFT risks and has identified the crypto sector as high-risk in its National Risk Assessment.
* Guyana Revenue Authority (GRA): Applies general tax principles (Capital Gains Tax or Income Tax) to cryptocurrency profits, as no specific crypto tax law exists.
III. Important Legislation
* Guyana Compliance Commission Act 2023 (Act No. 14 of 2023): Enacted on August 16, 2023. Its Section 72 is the cornerstone of the current moratorium, legally prohibiting VASP operations and the use of virtual assets for payments until the end of 2025.
* Anti-Money Laundering and Countering the Financing of Terrorism (Amendment) Act 2023 (Act No. 15 of 2023): Enacted on August 3, 2023. This law amends the principal AML/CFT Act to define 'Virtual Assets' and 'VASPs' and classify VASPs as reporting entities, preparing the legal basis for future regulation.
IV. Compliance Requirements
* Current: Compliance with the prohibition means no VASPs can legally operate or register in Guyana.
* Future (Post-2025): VASPs are expected to become licensed reporting entities subject to full AML/CFT obligations under the supervision of the GCC.
V. Notable Restrictions or Limitations
* Operational Ban: A complete ban on VASP operations is legally enforced.
* Banking Blockade: Banks are prohibited from servicing crypto businesses or facilitating customer transactions with them; attempts may lead to account closure.
* Payment Ban: Cryptocurrencies are not legal tender and cannot be used for payments for goods or services.
VI. Recent Developments or Notes
* The moratorium is set for reassessment on or after December 31, 2025.
* The government's stated intent is to use this period to prepare a comprehensive regulatory framework.
* The status is uniquely defined as a 'legislated gray zone' due to the temporary and explicit nature of the prohibition.
Full Analysis Report
Full Analysis Report
The regulatory status of cryptocurrency in Guyana is currently defined by a legislative moratorium rather than a permanent ban or active regulation. The pivotal piece of legislation is the Guyana Compliance Commission Act 2023, enacted in August 2023. Section 72 of this Act imposes a prohibition on the "use of virtual assets" and the "operation of Virtual Asset Service Providers (VASPs)" until December 31, 2025. This effectively freezes the domestic crypto industry, preventing any local exchange from obtaining a license or operating legally during this period.
Despite this prohibition on commercial operations and the use of crypto as a payment instrument, the legal status for individual possession remains in a gray area. There is no evidence of criminal penalties for individuals merely holding assets in foreign wallets, but the Bank of Guyana actively enforces a blockade on the financial system. Commercial banks are instructed not to facilitate transactions with VASPs, meaning residents cannot easily fund accounts on international exchanges using local fiat currency. This forces any remaining activity into peer-to-peer (P2P) channels or the use of foreign payment methods, which operate outside the purview of local regulators.
The government's strategy appears to be one of "pause and prepare." Simultaneously with the moratorium, the parliament passed the Anti-Money Laundering and Countering the Financing of Terrorism (Amendment) Act 2023. This Act updated the legal framework to adopt Financial Action Task Force (FATF) definitions for virtual assets, formally categorizing VASPs as "reporting entities." This legislative groundwork indicates that Guyana intends to transition to an Allowed-Regulated status once the moratorium expires in 2026, with the Guyana Compliance Commission serving as the supervisory authority.
Until the prohibition is lifted, retail trading faces significant friction. The lack of local exchanges, combined with banking restrictions, makes the environment hostile for casual investors. The Financial Intelligence Unit (FIU) has also issued risk assessments highlighting the sector's vulnerability to money laundering, further justifying the current restrictive stance. Investors should be aware that while they may not be prosecuted for holding Bitcoin, they have no legal recourse or consumer protection for crypto-related disputes within Guyana.
The regulatory status of cryptocurrency in Guyana is currently defined by a legislative moratorium rather than a permanent ban or active regulation. The pivotal piece of legislation is the **Guyana Compliance Commission Act 2023**, enacted in August 2023. **Section 72** of this Act imposes a prohibition on the "use of virtual assets" and the "operation of Virtual Asset Service Providers (VASPs)" until December 31, 2025. This effectively freezes the domestic crypto industry, preventing any local exchange from obtaining a license or operating legally during this period. Despite this prohibition on *commercial* operations and the use of crypto as a payment instrument, the legal status for individual possession remains in a gray area. There is no evidence of criminal penalties for individuals merely holding assets in foreign wallets, but the **Bank of Guyana** actively enforces a blockade on the financial system. Commercial banks are instructed not to facilitate transactions with VASPs, meaning residents cannot easily fund accounts on international exchanges using local fiat currency. This forces any remaining activity into peer-to-peer (P2P) channels or the use of foreign payment methods, which operate outside the purview of local regulators. The government's strategy appears to be one of "pause and prepare." Simultaneously with the moratorium, the parliament passed the **Anti-Money Laundering and Countering the Financing of Terrorism (Amendment) Act 2023**. This Act updated the legal framework to adopt Financial Action Task Force (FATF) definitions for virtual assets, formally categorizing VASPs as "reporting entities." This legislative groundwork indicates that Guyana intends to transition to an **Allowed-Regulated** status once the moratorium expires in 2026, with the Guyana Compliance Commission serving as the supervisory authority. Until the prohibition is lifted, retail trading faces significant friction. The lack of local exchanges, combined with banking restrictions, makes the environment hostile for casual investors. The Financial Intelligence Unit (FIU) has also issued risk assessments highlighting the sector's vulnerability to money laundering, further justifying the current restrictive stance. Investors should be aware that while they may not be prosecuted for holding Bitcoin, they have no legal recourse or consumer protection for crypto-related disputes within Guyana.
Source Evidence
Primary and secondary sources cited in this analysis
"Section 72... places a prohibition on the use of virtual assets and the operation of VASPs in Guyana until December 31, 2025."
"Amends the legislative regulatory framework to implement the FATF definition for virtual assets and virtual assets service providers... VA and VASPs will now be reporting entities."
"Section 72 of the Guyana Compliance Commission Act has placed a prohibition on the use of virtual assets and the operation of VASPs in Guyana until 2026."
"The Bank continues to warn the public about the risks associated with virtual assets."
"The Act restricts and phases out most commercial virtual asset activities until December 31, 2025."
"Digital assets are neither taken as legal tender nor banned; they fall under a quasi-legal status... The government of Guyana does not seem to have licensed any crypto trading platforms."
Web Sources (16)
Sources discovered via web search grounding
Search queries used (13)
- Guyana crypto mining regulation
- Bank of Guyana cryptocurrency regulation status
- legal status of bitcoin in Guyana 2024
- Guyana Anti-Money Laundering and Countering the Financing of Terrorism Act virtual assets
- Guyana Securities Council virtual assets circular
- "Guyana Compliance Commission Act" virtual assets prohibition
- Is crypto trading illegal for individuals in Guyana
- Guyana Compliance Commission Act 2023 section 72 virtual assets
- Guyana AML/CFT Amendment Act 2023 virtual assets ban
- Bank of Guyana circular virtual assets 2024
- Guyana crypto tax capital gains
- "Section 72" Guyana Compliance Commission Act virtual assets
- Guyana Compliance Commission Act 2023 Section 72 text
https://en.wikipedia.org/wiki/Legality_of_cryptocurrency_by_country_or_territory
https://cryptonomadhub.io/countries/gy
https://www.cbn.gov.ng/out/2024/fprd/guidelines%20on%20operations%20of%20bank%20accounts%20for%20virtual%20asset%20providers.pdf
https://eiccio.com/2023/09/02/guyana-compliance-commission-act-2023-a-business-guide/
https://fiu.gov.gy/wp-content/uploads/2024/01/Risk-Assessment-Virtual-Assets-and-VASPs.pdf
https://blog.upay.best/crypto-adoption/guyana/
https://kaieteurnewsonline.com/2024/01/31/guyana-crypto-laws-in-2024/
https://bankofguyana.org.gy/bog/images/compliance/Counter%20Terrorism%20Financing%20Strategy%20GUYANA.pdf
https://bankofguyana.org.gy/bog/images/compliance/Updated%20TF%20PF%20Risk%20Assessment%202023.pdf
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https://jackalli.com/ja/jc/media/jackalli_act_compliance_commission_2023_summary.pdf
https://parliament.gov.gy/documents/hansards/88th_sitting_-_twelfth_parliament.pdf
https://www.parliament.gov.gy/publications/acts-of-parliament/guyanacompliancecommissionact14of2023
https://blog.mexc.com/wiki/are-there-any-taxes-for-crypto-in-guyana/
https://guyanasecuritiescouncil.com/documents/aml/Guyana-Compliance-Commission-Act-2023.pdf
https://guyanasecuritiescouncil.com/documents/aml/Guyana-Compliance-Commission-Act-2023.pdf