United States Minor Outlying Islands

The regulatory status of cryptocurrency in the United States Minor Outlying Islands (UMOI) is 'Allowed-Regulated,' mirroring the federal framework of the United States. The UMOI consists of eight Pacific atolls (Wake, Midway, Johnston, etc.) and one Caribbean island (Navassa), all of which are unincorporated territories under the direct sovereignty of the United States. Unlike other territories such as Puerto Rico or Guam, the UMOI has no local government or organic act; administration is handled directly by federal agencies like the U.S. Fish and Wildlife Service or the Department of Defense. Consequently, there is no distinct 'local' crypto regulation; U.S. federal law applies exclusively.

Retail trading is permitted for the temporary residents (military personnel, contractors, and researchers) stationed on these islands. These individuals access the crypto market through U.S.-domiciled exchanges (e.g., Coinbase, Kraken) that are registered as Money Services Businesses (MSBs) with the Financial Crimes Enforcement Network (FinCEN). These exchanges are required to perform strict Know Your Customer (KYC) and Anti-Money Laundering (AML) checks under the Bank Secrecy Act (BSA). The jurisdiction is treated as part of the United States for financial compliance purposes, and FinCEN forms explicitly list 'United States Minor Outlying Islands' as a valid jurisdiction code.

In the broader 2025 context, the regulatory landscape has tightened with the passage of the 'GENIUS Act' and the 'CLARITY Act.' These federal laws provide specific frameworks for stablecoin issuance and distinguish between digital commodities and securities. The SEC and CFTC maintain active enforcement roles, prosecuting fraud and unregistered securities offerings that may target U.S. persons, regardless of their specific location within U.S. territories. The IRS treats cryptocurrency as property, meaning any trading activity conducted by personnel on these islands is subject to U.S. capital gains tax.

Operational challenges in the UMOI are physical rather than regulatory. Internet connectivity is often limited to satellite or military networks, which may have firewalls blocking trading sites. Furthermore, since there are no local retail banks, all fiat on-ramps and off-ramps must occur through mainland U.S. bank accounts. Despite these logistical hurdles, the legal status remains clear: crypto is a regulated, legal activity within the federal purview of the United States.