Tonga

The regulatory status of cryptocurrency in Tonga is best classified as a 'Gray-Zone'. While the act of an individual buying or holding Bitcoin is not explicitly criminalized in the penal code, the National Reserve Bank of Tonga (NRBT) has created a regulatory blockade that prevents the establishment of a legal local market. The NRBT maintains that under the National Reserve Bank of Tonga Act, any entity offering crypto assets must be licensed, yet it has publicly stated that 'NO business license has been issued' to any such entity. This creates a de facto ban on domestic exchanges and custodians.

The political landscape regarding crypto in Tonga has been characterized by a sharp divide between crypto-advocate Lord Fusitu'a and the conservative central bank. Between 2021 and 2023, Lord Fusitu'a campaigned heavily for a bill to make Bitcoin legal tender, modeled after El Salvador's legislation. However, this bill failed to gain the necessary parliamentary support or Royal Assent. Instead, the NRBT and the government have reinforced their cautious stance, prioritizing financial stability and the protection of foreign reserves over innovation in digital assets.

In late 2025, reports surfaced that Tonga's National Anti-Money Laundering Committee (NAMLC) reaffirmed a ban on Virtual Asset Service Providers (VASPs). This decision aligns with a broader trend in the Pacific region (similar to Fiji) where regulators, lacking the capacity to effectively supervise complex crypto-assets, opt for prohibition or strict exclusion to comply with FATF standards. Consequently, Tongans wishing to trade must rely on offshore platforms, doing so entirely at their own risk without any local consumer protection or legal recourse.

Practically, this means that while retail trading is not a crime, it is operationally difficult. The Foreign Exchange Control Act 2018 imposes strict controls on capital outflows, and local banks are unlikely to facilitate transfers to known crypto exchanges. The NRBT continues to issue specific warnings against crypto investment schemes, highlighting that payments are irreversible and unprotected. The environment is one of tolerance for individual risk-taking but zero tolerance for institutional adoption or business operations.