Niue

Niue presents a classic case of a 'legal but unregulated' jurisdiction regarding cryptocurrency. There are no laws explicitly criminalizing the buying, selling, or holding of cryptocurrencies by retail investors. Consequently, individuals in Niue are free to access international exchanges and self-custody wallets without fear of legal prosecution. However, the government has not introduced a 'Digital Assets Act' or a Virtual Asset Service Provider (VASP) licensing regime, distinguishing it from other Pacific offshore centers like the Marshall Islands or Palau which have moved towards formal regulation.

The regulatory environment is defined by 'benign neglect' rather than active hostility. The Niue Financial Services Commission (NFSC) oversees the offshore corporate sector but has not issued specific circulars governing crypto-assets. As a member of the Asia/Pacific Group on Money Laundering (APG), Niue is technically required to implement FATF Recommendation 15 (regulation of VASPs), but public records indicate no domestic legislation has yet been passed to operationalize this. This leaves crypto businesses in a gray area where they can incorporate as International Business Companies (IBCs) but cannot obtain a specific regulatory license to operate as a crypto exchange or custodian.

Practically, the biggest hurdle for retail trading is the banking infrastructure. Niue uses the New Zealand Dollar and relies heavily on the Niue Development Bank and agency services from New Zealand's Kiwibank. These institutions are risk-averse and subject to New Zealand's strict AML/CFT regulations. As a result, residents may face significant challenges in transferring fiat funds to and from international crypto exchanges, not because of a Niuean government ban, but due to the de-risking policies of correspondent banks.

Taxation of cryptocurrency in Niue is not explicitly defined in statute. The jurisdiction generally follows a territorial tax system, where income derived from outside Niue is often exempt for non-residents or offshore entities. For local tax residents, the lack of capital gains tax guidance suggests that personal crypto trading profits likely remain untaxed, though this is a result of legislative silence rather than a specific exemption. Investors should be aware that this 'unregulated' status offers zero consumer protection; in the event of exchange collapse or fraud, there is no local compensation scheme or ombudsman to appeal to.