Brunei

## Report on Retail Trading Status of Cryptocurrencies in Brunei Darussalam

**Date:** 2025-06-26

**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).

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### Retail_Trading_Status: Allowed-UnRegulated

**Narrative Explanation:**

As of December 2025, retail cryptocurrency trading (buying, selling, and holding) by individual citizens and residents in Brunei Darussalam is **Allowed-UnRegulated**. While there are no specific laws explicitly prohibiting the activity, and individuals can engage with cryptocurrencies, the sector is not governed by a dedicated crypto-focused regulatory framework.

The Brunei Darussalam Central Bank (BDCB), formerly known as Autoriti Monetari Brunei Darussalam (AMBD), has consistently stated that cryptocurrencies are not legal tender in the country. This means they are not officially recognized as a medium of exchange for goods, services, or debt repayment. The BDCB also clarifies that it does not regulate cryptocurrencies themselves as they operate independently from monetary authorities. Consequently, individuals dealing in cryptocurrencies are not protected under the laws administered by the BDCB.

Despite the lack of specific regulation for cryptocurrency trading itself, activities *surrounding* cryptocurrencies may fall under existing financial regulations if they intersect with services under BDCB's purview. This could include businesses or individuals providing services like deposit-taking, money remittance, foreign exchange, or securities issuance, even if these services involve cryptocurrencies. The **Criminal Asset Recovery (Amendment) Order, 2023** represents a significant development, expanding the definition of 'financial institution' to include Virtual Asset Service Providers (VASPs) and subjecting them to AML/CFT obligations. However, as of the current date, no specific VASP licensing regime is in place, and no licensed VASPs operate in Brunei.

The BDCB has issued several public statements and warnings advising extreme caution when dealing with cryptocurrencies and their related products due to high volatility, speculative nature, and risks of financial loss, fraud, and cybersecurity threats. These warnings emphasize that the public is not protected by regulatory safeguards when investing in or transacting with cryptocurrencies. Banking access for crypto transactions is also restricted.

There is an indication that the BDCB is monitoring developments and is in the process of developing an 'appropriate legal and regulatory framework for the licensing and supervision of cryptocurrencies and related activities'. However, as of the current date, this framework is not yet in place, leaving the retail trading space largely unregulated from a crypto-specific standpoint.

While no specific crypto-focused KYC/AML regulations for retail trading platforms are explicitly detailed, Brunei has a general Anti-Money Laundering and Counter-Terrorism Financing (AML/CFT) Order from 2010 and supporting regulations. Financial institutions and other entities under BDCB's oversight are subject to these AML/CFT requirements, which include mandatory KYC/CDD procedures. The 2023 amendment extends these obligations to VASPs in law, but without an operational licensing framework. The FATF has noted that the VASP sector is small but emerging in Brunei.

Research indicates that while cryptocurrency adoption is not yet widespread in Brunei and public awareness can be deficient, there is growing interest, particularly among the tech-savvy youth. International cryptocurrency exchanges are accessible to Bruneians, and some sources list popular platforms used in the country. These platforms, if operating internationally, would likely adhere to KYC/AML requirements based on their own jurisdictions, but specific Bruneian mandates for these exchanges are not yet established.

In summary, individuals in Brunei are not legally barred from trading or holding cryptocurrencies. However, this activity occurs in an environment without specific regulations governing cryptocurrencies themselves or dedicated licensing and oversight for crypto exchanges operating within Brunei. General financial laws and AML/CFT obligations may apply to related financial services, and the central bank has issued strong cautionary advice. The status remains 'Allowed-UnRegulated' pending the development and implementation of the anticipated specific legal and regulatory framework.

**Relevant Text Excerpts and Sources:**

*   **Brunei Darussalam Central Bank (BDCB):** 'BDCB wishes to reiterate that cryptocurrencies are not legal tender in Brunei Darussalam and are not regulated by BDCB as they operate independently from monetary authorities or central banks. Nevertheless, the activities surrounding them may be regulated if they constitute any of the activities regulated in the relevant legislation under BDCB's purview where compliance to specific requirements must be adhered to.'
*   **Brunei Darussalam Central Bank (BDCB):** 'To date, BDCB has been closely monitoring developments surrounding cryptocurrencies to ensure that the regulatory measures are commensurate with the risks posed. BDCB is aware that, considering the rapid growth of cryptocurrencies globally, there has been heightened interest from the public. To this end, BDCB is currently developing an appropriate legal and regulatory framework for the licensing and supervision of cryptocurrencies and related activities.'
*   **Criminal Asset Recovery (Amendment) Order, 2023:** 'Insertion of new sub-paragraphs... (via) any person who conducts business... (A) exchange between virtual assets and fiat currency...' (Subjecting VASPs to AML/CFT obligations).
*   **BDCB Press Release (2017):** 'AMBD would like to remind the public that cryptocurrencies are not legal tender in Brunei Darussalam and are not regulated by AMBD.'
*   **Wikipedia (citing AMBD):** 'Bitcoin and cryptocurrency is not legal tender in Brunei Darussalam and are not regulated by AMBD (Brunei Monetary Authority). It is not protected under the laws administered by AMBD. AMBD however, advised the public not to be easily enticed by any investment or financial activity advertisements, and to conduct due diligence and understand the financial products properly before participating. There is no law that stated that holding or trading bitcoin is illegal.'
*   **FATF (APG Mutual Evaluation Report Summary, July 2023):** 'Some risks are noted in the lending sector and in the small but emerging virtual assets service providers (VASP) sector.'