Mauritania

**Report: Retail Cryptocurrency Trading Status in Mauritania**

**Topic:** Retail_Trading_Status
**Description:** Assess whether individual citizens and residents in the country are legally permitted to buy, sell, and hold cryptocurrencies. Detail the regulatory environment surrounding this activity (e.g., KYC/AML requirements imposed on platforms, general warnings issued).

**1. Current Status:**

**Banned**

**2. Detailed Narrative Explanation:**

The Central Bank of Mauritania (BCM - Banque Centrale de Mauritanie) has explicitly prohibited dealings in cryptocurrencies (virtual assets) for individuals and financial institutions under its supervision. This prohibition stems primarily from concerns regarding financial stability, consumer protection, and the risks associated with money laundering and the financing of terrorism (ML/TF).

While there isn't a specific, comprehensive law dedicated solely to cryptocurrency regulation, the BCM has issued directives, such as Circular No. 11/M/2020, which explicitly forbids financial institutions from engaging in any virtual asset transactions [7]. This effectively bans regulated entities from facilitating cryptocurrency trading for retail clients. Although individuals might theoretically engage in peer-to-peer (P2P) transactions or use offshore platforms, doing so operates outside the established legal and regulatory framework and against the explicit stance of the central monetary authority.

The BCM's position means there is no regulated environment for retail cryptocurrency trading within Mauritania. Consequently, there are no specific licensing regimes or tailored KYC/AML requirements for Virtual Asset Service Providers (VASPs) operating domestically, as their core activity is prohibited for regulated entities. General AML/CFT regulations apply to the financial sector, and the BCM supervises financial institutions with a risk-based approach [7], but the primary regulatory action concerning crypto is the ban itself.

The BCM's focus appears to be on safeguarding the formal financial system from the perceived risks of cryptocurrencies. This is further evidenced by their ongoing exploration of a Central Bank Digital Currency (CBDC) – a digital Ouguiya – in partnership with Giesecke+Devrient (G+D), aiming to enhance digital transformation and financial inclusion within a controlled environment [6, 12, 18, 23]. This contrasts sharply with the prohibition on private cryptocurrencies.

Despite the official ban, some sources suggest the possibility of buying cryptocurrencies through international exchanges or P2P methods [4, 8, 10]. However, these sources often acknowledge the lack of regulation or unclear legal status [4, 8], highlighting the risks involved for individuals participating in such activities given the central bank's prohibition. One source [9] incorrectly classifies crypto as intangible assets subject to general tax laws, seemingly overlooking or contradicting the BCM's explicit ban on dealing in them. The most authoritative sources, like the FATF follow-up reports, confirm the prohibition [7].

**3. Relevant Text Excerpts:**

*   **Source:** 3rd Enhanced Follow-Up Report for The Islamic Republic of Mauritania - FATF [7]
    *   **Excerpt (Summary):** The report notes deficiencies regarding Mauritania's approach to virtual assets (VAs) and Virtual Asset Service Providers (VASPs). To address these, the Central Bank issued Circular No. 11/M/2020, which prohibits all financial institutions (FIs) under its supervision from dealing in VAs or performing any related transactions.
    *   **Direct Quote Snippet:** "...the Central Bank issued Circular No. 11/M/2020 which states that it is prohibited for all FIs to deal in VAs or perform any..."

*   **Source:** Legality of cryptocurrency by country or territory - Wikipedia [11] (Citing Library of Congress)
    *   **Excerpt (Summary):** Citing the Library of Congress, this source states that Mauritania prohibits individuals, banks, and other financial institutions from dealing in cryptocurrencies.
    *   **Direct Quote Snippet:** "Individuals, banks, and other financial institutions are prohibited from dealing in cryptocurrencies."

*   **Source:** Second 12-Month Review of Revised FATF Standards on Virtual Assets and VASPs - FATF [15]
    *   **Excerpt (Summary):** This 2021 FATF review lists Mauritania (via MENAFATF) among jurisdictions that had not yet met the technical requirements of Recommendation 15 (related to regulating VAs and VASPs), indicating a lack of a regulatory framework permitting and overseeing such activities at that time, consistent with a prohibitive stance.

**4. Source Links:**

*   **FATF 3rd Enhanced Follow-Up Report (MENAFATF):** [https://www.fatf-gafi.org/content/dam/fatf-gafi/fsrb-mer/MENAFATF-3rd-Enhanced-Follow-Up-Report-Mauritania-2021.pdf.coredownload.inline.pdf](https://www.fatf-gafi.org/content/dam/fatf-gafi/fsrb-mer/MENAFATF-3rd-Enhanced-Follow-Up-Report-Mauritania-2021.pdf.coredownload.inline.pdf) [7]
*   **Wikipedia - Legality of Cryptocurrency (citing Library of Congress):** [https://en.wikipedia.org/wiki/Legality_of_cryptocurrency_by_country_or_territory](https://en.wikipedia.org/wiki/Legality_of_cryptocurrency_by_country_or_territory) [11]
*   **FATF Second 12-Month Review:** [https://www.fatf-gafi.org/content/dam/fatf/documents/recommendations/Second-12-Month-Review-Revised-FATF-Standards-Virtual-Assets-VASPS.pdf.coredownload.inline.pdf](https://www.fatf-gafi.org/content/dam/fatf/documents/recommendations/Second-12-Month-Review-Revised-FATF-Standards-Virtual-Assets-VASPS.pdf.coredownload.inline.pdf) [15]
*   **Giesecke+Devrient Press Release (CBDC Project):** [https://www.gi-de.com/en/press/g-d-partners-with-central-bank-of-mauritania-to-design-a-digital-cbdc](https://www.gi-de.com/en/press/g-d-partners-with-central-bank-of-mauritania-to-design-a-digital-cbdc) [12]
*   **Bitcoin.com News (CBDC Project):** [https://news.bitcoin.com/mauritania-central-bank-partners-with-gieseckedevrient-to-develop-a-national-cbdc/](https://news.bitcoin.com/news/mauritania-central-bank-partners-with-gieseckedevrient-to-develop-a-national-cbdc/) [6]

*(Note: While some search results [2, 3, 5] discuss crypto regulation in Mauritius, they are distinct from Mauritania and not relevant to this report.)*