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Cabo Verde

Retail_Trading_Status

Allowed-Regulated High Confidence
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Status Changed

Previous status: Gray-Zone

Reconciled from live analysis after human review confirmed status as Allowed-Regulated. The live analysis correctly identifies the enactment of Law No. 30/X/2023, which establishes a mandatory registration regime for VASPs under the Banco de Cabo Verde, creating a regulated environment for retail trading. The latest analysis incorrectly classified the status as Gray-Zone based on a perceived implementation lag and lack of licensed entities. However, the presence of a specific, modern legal framework that mandates registration and compliance defines the status as 'Allowed-Regulated.' The new analysis's information about the draft notice, tax law, and market perceptions from 2025 was incorporated to provide a more complete and current picture, but does not alter the fundamental regulatory status established by law.

Analysis ID
#882
Version
Latest
Created
2025-12-13 07:49
Workflow Stage
Reconciled

Executive Summary

Retail cryptocurrency trading is legally permitted and regulated in Cabo Verde. The Banco de Cabo Verde (BCV) is the primary regulator, requiring Virtual Asset Service Providers (VASPs) to register and comply with Anti-Money Laundering and Counter-Financing of Terrorism (AML/CFT) obligations under Law No. 30/X/2023. While the operational licensing framework was still being finalized in 2024 and no licensed entities were publicly confirmed by late 2025, the existence of a specific, modern legal framework establishes a regulated environment. The Prime Minister confirmed in 2023 that the country has the legal conditions for industry development under BCV oversight. A separate law, Lei n.º 3/24, explicitly prohibits cryptocurrency mining.

Key Pillars

  • Primary Regulator: The Banco de Cabo Verde (BCV) is responsible for overseeing and regulating virtual asset activities, including the registration and supervision of VASPs.
  • Mandatory Registration and Licensing: Entities providing services with virtual assets must obtain prior registration with the Banco de Cabo Verde and are subject to fit and proper assessments for management and beneficial owners.
  • AML/CFT Compliance: VASPs are subject to Cabo Verde's Anti-Money Laundering and Countering the Financing of Terrorism laws (Law No. 38/VII/2009 as amended) and must comply with obligations under the 2023 virtual asset law.
  • Prohibition on Mining: The activity of mining cryptocurrencies and other virtual assets is explicitly prohibited by law.

Landmark Laws

  • Law No. 30/X/2023 of June 21, 2023: Regulates the provision of services with virtual assets and the constitution of digital banks. It mandates prior registration with the Banco de Cabo Verde for any VASP activity and imposes AML/CFT obligations. Source
  • Law No. 29/X/2023 of June 21, 2023: Amends the General Tax Code, establishing the framework for taxing digital financial activities as part of the legislative package accompanying the VASP law. Source
  • Lei n.º 3/24 de 10 de Abril: Explicitly prohibits the activity of mining cryptocurrencies and other virtual assets.
  • Notice No. 4/2024 (Draft/Consultation): A regulatory notice placed for public consultation in early 2024 to operationalize the registration process for VASPs, detailing forms and specific requirements.

Considerations

  • Virtual assets are not legal tender in Cabo Verde; the Escudo (CVE) remains the sole legal tender.
  • The Banco de Cabo Verde has issued warnings about the risks associated with virtual currencies, including volatility, lack of legal tender status, and potential for use in illicit activities.
  • Implementation of the licensing regime has experienced delays. The draft notice for registration was under consultation in 2024, and as of late 2025, no licensed VASPs had been publicly confirmed, leading to a perception among local entrepreneurs of a lack of clear, operational framework.
  • Capital gains from crypto assets are generally subject to taxation, with a flat rate of 20% often cited, though practical enforcement on retail traders remains unclear.
  • The government is actively modernizing its legal framework for digital services and e-commerce, and the BCV is studying the potential introduction of a central bank digital currency (CBDC).

Notes

  • In March 2018, the Banco de Cabo Verde issued an alert cautioning the public about the risks of acquiring, holding, or trading cryptocurrencies like Bitcoin.
  • Prime Minister Ulisses Correia e Silva stated in 2023 that Cabo Verde has the necessary legal conditions for the development of the cryptocurrency industry, with the BCV overseeing the sector to prevent money laundering and terrorist financing.
  • The legal framework for VASPs is robust and modern (post-2023), but the practical market development lags, with local fintech startups reporting no domestic entities directly working with cryptocurrencies as of late 2025.
  • The classification is 'Allowed-Regulated' based on the enacted legal framework establishing a registration and supervision regime, not on the current number of operational licensees.

Remaining Uncertainties

  • Has any specific entity successfully completed the registration process with BCV as of late 2025?
  • What are the specific capital requirements and fees detailed in the final regulations (Avisos) for VASPs?
  • How does the tax authority practically enforce the 20% capital gains tax on individual crypto traders?

Detailed Explanation

Retail cryptocurrency trading is legally permitted and regulated in Cabo Verde, classified under an 'Allowed-Regulated' status. The primary regulatory framework is established by Law No. 30/X/2023 of June 21, 2023, which regulates the provision of services with virtual assets and mandates that all Virtual Asset Service Providers (VASPs) must obtain prior registration with the Banco de Cabo Verde (BCV), the country's central bank and primary regulator. This law subjects VASPs to fit and proper assessments for their management and beneficial owners and imposes comprehensive Anti-Money Laundering and Counter-Financing of Terrorism (AML/CFT) obligations, aligning with Cabo Verde's existing AML/CFT laws such as Law No. 38/VII/2009. The legislative package was complemented by Law No. 29/X/2023, which amended the General Tax Code to establish a framework for taxing digital financial activities, indicating that capital gains from crypto assets are generally subject to taxation. While the Prime Minister confirmed in 2023 that the country has the legal conditions for industry development under BCV oversight, the operational licensing framework has experienced delays. A draft regulatory notice (Notice No. 4/2024) to detail the registration process was placed for public consultation in early 2024, but as of late 2025, no licensed VASPs had been publicly confirmed, leading to a perception among local entrepreneurs of an unclear operational framework. It is important to note that virtual assets are not legal tender in Cabo Verde; the Escudo (CVE) remains the sole legal tender, and the BCV has historically issued warnings about the risks associated with virtual currencies. A significant and explicit restriction is the prohibition of cryptocurrency mining, which is outlawed under Lei n.º 3/24 de 10 de Abril. The government is actively modernizing its digital services framework, and the BCV is studying a potential central bank digital currency (CBDC).

Summary Points

I. Regulatory Status
* Retail cryptocurrency trading is Allowed-Regulated.
* Virtual Asset Service Providers (VASPs) must register and be licensed by the Banco de Cabo Verde (BCV).
* Virtual assets are not legal tender; the Cabo Verdean Escudo (CVE) is the sole legal tender.

II. Key Regulatory Bodies
* Banco de Cabo Verde (BCV): The primary regulator responsible for overseeing and regulating virtual asset activities, including VASP registration, supervision, and AML/CFT compliance.

III. Important Legislation
* Law No. 30/X/2023 (June 21, 2023): The core law regulating the provision of services with virtual assets. It mandates prior BCV registration for VASPs and imposes AML/CFT obligations.
* Law No. 29/X/2023 (June 21, 2023): Amends the General Tax Code to establish taxation for digital financial activities.
* Lei n.º 3/24 (April 10, 2024): Explicitly prohibits the activity of mining cryptocurrencies and other virtual assets.
* Notice No. 4/2024 (Draft/Consultation): A regulatory notice for public consultation (early 2024) intended to operationalize the VASP registration process.

IV. Compliance Requirements
* VASPs must obtain prior registration and licensing from the Banco de Cabo Verde.
* VASPs and their management/beneficial owners are subject to fit and proper assessments.
* VASPs must comply with Cabo Verde's Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) laws, including obligations under Law No. 30/X/2023.
* Capital gains from crypto assets are generally subject to taxation, with a flat rate of 20% often cited, though practical enforcement on retail traders is unclear.

V. Notable Restrictions or Limitations
* Cryptocurrency and virtual asset mining is explicitly prohibited by law (Lei n.º 3/24).
* Implementation of the licensing regime has been delayed. As of late 2025, no licensed VASPs had been publicly confirmed, creating a perception of an unclear operational framework for local businesses.
* The BCV has issued public warnings about the risks of virtual currencies, including volatility and potential use in illicit activities.

VI. Recent Developments or Notes
* In 2023, Prime Minister Ulisses Correia e Silva stated Cabo Verde has the legal conditions for cryptocurrency industry development under BCV oversight.
* The government is modernizing its legal framework for digital services and e-commerce.
* The BCV is studying the potential introduction of a central bank digital currency (CBDC).
* Despite the robust legal framework enacted in 2023, local fintech startups reported no domestic entities directly working with cryptocurrencies as of late 2025.

Full Analysis Report

Report on the Current Status of Retail Cryptocurrency Trading in Cabo Verde

Date of Report: 2025-07-04 (Updated with 2025 information)

Topic: Retail_Trading_Status

This section assesses the legal and regulatory framework governing the buying, selling, and holding of cryptocurrencies by individual citizens and residents in Cabo Verde.

1. Current Status: Allowed-Regulated

Retail cryptocurrency trading is legally permitted and regulated in Cabo Verde. The country has established a specific legal framework under Law No. 30/X/2023, which requires Virtual Asset Service Providers (VASPs) to register with the Banco de Cabo Verde (BCV) and comply with Anti-Money Laundering and Counter-Financing of Terrorism (AML/CFT) regulations. The presence of this enacted law, confirmed by the Prime Minister, defines the environment as regulated, even as the operational licensing process continues to be finalized.

2. Detailed Narrative Explanation

Cabo Verde's regulatory approach to cryptocurrency has matured significantly with the enactment of Law No. 30/X/2023 on June 21, 2023. This law explicitly brings virtual asset activities under the supervision of the Banco de Cabo Verde (BCV), mandating prior registration for exchanges, custodians, and transfer services. It subjects these entities to strict AML/CFT obligations, aligning the country with international standards. Prime Minister Ulisses Correia e Silva confirmed this legislative progress in 2023, stating Cabo Verde has the legal conditions for cryptocurrency industry development under BCV oversight.

The BCV has been working to operationalize this law. In January 2024, it published a draft regulatory notice (Notice No. 4/2024) for public consultation, detailing the procedures and documentation required for VASP registration. This indicates an active, though deliberate, implementation phase. Concurrently, Law No. 29/X/2023 amended the General Tax Code, establishing a framework for taxing digital financial activities.

A notable restriction is Lei n.º 3/24 de 10 de Abril, which explicitly prohibits cryptocurrency and virtual asset mining.

Despite the clear legal framework, market development has been slow. As of late 2025, no VASPs had been publicly licensed under the new regime. Local fintech entrepreneurs, such as those from CaboPay, reported in November 2025 that "no one works directly with cryptocurrencies in the country" and called for a clearer legal framework, highlighting a perception gap between the law on the books and its practical effect. However, this implementation lag does not negate the existence of the regulatory regime. The BCV maintains its supervisory role and has historically cautioned the public about crypto risks, as seen in a 2018 alert.

In summary, individual trading is permitted within a regulated environment. The BCV oversees a mandatory registration system for service providers, creating a structured, if nascent, market. The status is 'Allowed-Regulated' based on the enacted law establishing this framework.

3. Relevant Text Excerpts

  • Source: Law No. 30/X/2023 (Banco de Cabo Verde)
    > "The exercise of activities with virtual assets will, from now on, be subject to prior registration with Banco de Cabo Verde."

  • Source: Cointelegraph Brasil (Interview with Prime Minister of Cabo Verde, 2023)
    > "Nós já temos uma legislação relativa as criptomoedas e nela, o Banco Central, que faz a supervisão bancária também está ligado a esta matéria e é um setor em desenvolvimento e em Cabo Verde temos as condições legais para o desenvolvimento desta industria." (We already have legislation regarding cryptocurrencies and in it, the Central Bank, which carries out banking supervision, is also linked to this matter and it is a developing sector and in Cabo Verde we have the legal conditions for the development of this industry.).

  • Source: Banco de Cabo Verde (Draft Notice, 2024)
    > "As atividades com ativos virtuais só podem ser exercidas por entidade que para o efeito obtenha o seu registo prévio junto do Banco de Cabo Verde..." (Activities with virtual assets can only be carried out by an entity that, for this purpose, obtains its prior registration with the Banco de Cabo Verde...).

  • Source: Startup Cabo-verdiana CaboPay at Web Summit 2025 (Inforpress, 2025)
    > "In relation to the use of cryptocurrencies, the young entrepreneur defended the need for a 'more clear' legal framework in Cabo Verde... 'At this moment, no one works directly with cryptocurrencies in the country'"

  • Source: Legis-Palop.org (Newsletter, May 2024)
    > "Lei n.º 3/24 de 10 de Abril – Aprovação da Lei Sobre a Proibição da Actividade de Mineração de Criptomoedas e outros Activos Virtuais." (Law No. 3/24 of April 10 – Approval of the Law on the Prohibition of the Activity of Mining Cryptocurrencies and other Virtual Assets.).

4. Referenced URLs

  1. Banco de Cabo Verde - Law No. 30/X/2023 (2023): https://www.bcv.cv/pt/O%20Banco/Sala%20de%20Imprensa/Arquivo/Documents/Lei%20n.%C2%BA%2030-X-2023%20-%20Regula%20a%20presta%C3%A7%C3%A3o%20de%20servi%C3%A7os%20com%20ativos%20virtuais%20e%20a%20constitui%C3%A7%C3%A3o%20de%20bancos%20digitais.pdf
  2. Banco de Cabo Verde - Law No. 29/X/2023 (2023): https://www.bcv.cv/pt/Supervisao/Bancos%20e%20Outras%20Instituicoes%20Financeiras/Legisla%C3%A7%C3%A3o/Documents/Lei%20n.%C2%BA%2029-X-2023%20-%20Procede%20%C3%A0%20segunda%20altera%C3%A7%C3%A3o%20%C3%A0%20Lei%20n.%C2%BA%2047-VIII-2013,%20de%2020%20de%20dezembro,%20alterada%20pela%20Lei%20n.%C2%BA%2086-IX-2020,%20de%2028%20de%20abril,%20que%20aprova%20o%20C%C3%B3digo%20Geral%20Tribut%C3%A1rio.pdf
  3. Banco de Cabo Verde - Draft Notice on Virtual Asset Activity Registration (2024): https://www.bcv.cv/pt/comunicados_e_notas/outros_documentos/projecto-de-aviso-que-regulamenta-o-disposto-no-artigo-3-da-lei-n-30-x-2023-de-21-de-junho
  4. Banco de Cabo Verde - Alert on Virtual Currency Risks (2018): https://www.bcv.cv/pt/comunicados_e_notas/noticias/alerta-do-banco-de-cabo-verde
  5. Banco de Cabo Verde - Detailed Communiqué on Virtual Currencies (2018): https://www.bcv.cv/pt/comunicados_e_notas/outros_documentos/comunicado-riscos-das-moedas-virtuais-cripto-moedas
  6. Legis-Palop.org - Newsletter mentioning the ban on crypto mining (May 2024): https://www.legis-palop.org/bd/newsletter/2024/newsletter-maio-2024
  7. Cointelegraph Brasil - Interview with the Prime Minister of Cabo Verde (2023): https://br.cointelegraph.com/news/in-brazil-prime-minister-of-cape-verde-defends-innovation-in-cryptocurrencies-highlights-national-bitcoin-law-and-talks-about-cbdcs
  8. SAPO - Report on BCV studying digital currency (2022): https://eco.sapo.cv/2022/11/14/banco-de-cabo-verde-estuda-introducao-de-moeda-digital-e-alerta-para-os-riscos/
  9. Banco de Cabo Verde - AML/CFT Information: https://www.bcv.cv/pt/supervisao/prevencao-a-lavagem-de-capitais-e-financiamento-ao-terrorismo
  10. Banco de Cabo Verde - Registration Dossier (2024): https://www.bcv.cv/en/Supervisao/Mercado%20de%20Capitais/Dossier%20de%20Registo/Paginas/default.aspx
  11. Inforpress - Startup Cabo-verdiana CaboPay at Web Summit 2025 (2025): https://inforpress.cv/en/technology/portugalweb-summit-2025-cape-verdean-startup-wants-to-make-international-transfer-faster-and-cheaper
  12. VPQ Advogados Legal Alert: Provision of Virtual Asset Services (2023): https://www.vpqadvogados.com/xms/files/2023-06-26_Legal_Alert_-_Provision_of_virtual_asset_and_digital_banking_services.pdf

Source Evidence

Primary and secondary sources cited in this analysis

Law No. 30/X/2023 - Regulates the provision of services with virtual assets primary (law_text)
2023-06-21

"The exercise of activities with virtual assets will, from now on, be subject to prior registration with Banco de Cabo Verde."

Law No. 29/X/2023 - Amends the General Tax Code primary (law_text)
2023-06-21

"Proceeds to the second amendment to Law No. 47/VIII/2013, of December 20, amended by Law No. 86/IX/2020, of April 28, which approves the General Tax Code."

Banco de Cabo Verde - Draft Notice on Virtual Asset Activity Registration primary (regulator)
2024

"As atividades com ativos virtuais só podem ser exercidas por entidade que para o efeito obtenha o seu registo prévio junto do Banco de Cabo Verde..."

Banco de Cabo Verde - Alert on Virtual Currency Risks primary (regulator)
2018-03

"O presente alerta é emitido para assinalar os riscos em que pode incorrer quem adquire, detém ou negoceia moedas virtuais, ou cripto-moedas, como a Bitcoin..."

Banco de Cabo Verde - Detailed Communiqué on Virtual Currencies primary (regulator)
2018-03-31

"Virtual currencies, or crypto-currencies, such as Bitcoin, do not have legal tender status... and are not guaranteed by a central bank."

Banco de Cabo Verde - Registration Dossier primary (regulator)
2024-05-13

"Documents needed to file the Application for Registration of the entities indicated below"

Cointelegraph Brasil - Interview with Prime Minister of Cabo Verde secondary (news)
2023

"Nós já temos uma legislação relativa as criptomoedas e nela, o Banco Central, que faz a supervisão bancária também está ligado a esta matéria..."

Legis-Palop.org - Newsletter mentioning the ban on crypto mining secondary (news)
2024-05

"Lei n.º 3/24 de 10 de Abril – Aprovação da Lei Sobre a Proibição da Actividade de Mineração de Criptomoedas e outros Activos Virtuais."

SAPO - Report on BCV studying digital currency secondary (news)
2022-11-14

"Banco de Cabo Verde estuda introdução de moeda digital e alerta para os riscos"

Startup Cabo-verdiana CaboPay at Web Summit 2025 secondary (news)
2025-11-13

"In relation to the use of cryptocurrencies, the young entrepreneur defended the need for a 'more clear' legal framework in Cabo Verde... 'At this moment, no one works directly with cryptocurrencies in the country'"

VPQ Advogados Legal Alert: Provision of Virtual Asset Services secondary (analysis)
2023-06-26

"Entities that engage in activities with virtual assets on national territory are now subject to compliance with the duties to prevent money laundering... subject to prior registration with Banco de Cabo Verde."

Web Sources (2)

Sources discovered via web search grounding

Search queries used (13)
  • Cape Verde crypto legal status
  • Banco de Cabo Verde aviso criptomoedas
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proeliumlaw.com

https://proeliumlaw.com/cryptocurrency-regulation-tracker/

bfibank.com

https://bfibank.com/wp-content/uploads/2024/12/BFI_Relatorio-e-Contas_23.pdf

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