Mozambique

{
  "analysis_text": "Mozambique\u0027s regulatory status for cryptocurrency is currently classified as \u0027Gray-Zone\u0027 because, although a formal licensing regime exists on paper, it has not yet resulted in a functioning, regulated market. The Bank of Mozambique (Banco de Mo\u00e7ambique) took a significant step towards regulation with the enactment of Law No. 14/2023 and the subsequent Notice No. 4/GBM/2023 in September 2023. These regulations explicitly brought Virtual Asset Service Providers (VASPs) under the AML/CFT umbrella and mandated registration with the central bank. The framework requires VASPs to demonstrate robust compliance controls, physical presence, and fit-and-proper management.\n\nHowever, despite the regulation coming into force in November 2023, there is no evidence that any VASP has been successfully registered as of late 2025. This \u0027paper tiger\u0027 situation\u2014where a law exists but no licenses are issued\u2014is a classic indicator of a Gray-Zone environment. It suggests either that the requirements are too onerous for local operators or that the central bank is delaying approvals to maintain a de facto ban while appearing compliant with FATF standards.\n\nOperationally, the environment is restrictive. The Bank of Mozambique has aggressively enforced AML/CFT rules, fining major commercial banks (such as BCI and Millennium BIM) for compliance failures. This has created a chilling effect where banks refuse to process transactions related to crypto assets to avoid regulatory scrutiny. Additionally, strict foreign exchange controls, reinforced by Notice No. 9/GBM/2025, limit the amount of capital residents can transfer abroad via card payments, effectively blocking access to international crypto exchanges.\n\nConsequently, while retail trading is not explicitly criminalized for individuals, the lack of local registered options and the banking sector\u0027s blockade make it difficult to operate legally. Users are forced to rely on peer-to-peer (P2P) markets or foreign platforms, often circumventing FX controls, which places them in a precarious legal position. The central bank continues to warn that such activities are at the user\u0027s sole risk.",
  "confidence_level": "High",
  "executive_summary": "Cryptocurrency in Mozambique falls into a Gray-Zone due to a disconnect between the legal framework and operational reality. While the Bank of Mozambique established a mandatory registration regime for Virtual Asset Service Providers (VASPs) in late 2023 via Notice No. 4/GBM/2023, no entities have been publicly confirmed as registered more than two years later. Furthermore, strict foreign exchange controls and recent banking sector fines for AML violations have led to a de facto restriction where commercial banks often block crypto-related transactions.",
  "grounding_urls": [
    {
      "resolved_url": "https://blog.ueex.com/best-crypto-exchanges-in-mozambique/",
      "title": "ueex.com",
      "url": "https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQHu1nzlPIXLoO5DznXMKxbgWgt0R0LpRYqmJOVQTO3_bNgfK2qYIG-gESBgDbGizQPRva-7n1v59Yq5xaq-8BrgMSrC7MFRD0dw6Rm325Yb9rp2BZa3xR_LfSP640btJOCK0Ns0qJJ1L6q218Ei_2YX11Eagg=="
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      "resolved_url": "https://www.binance.com/en-IN/square/profile/square-creator-37b0b52b1d4a0",
      "title": "binance.com",
      "url": "https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQHeFzdDh9TY4SuU1QNvsiMfMbuTnaIu3M9IwxUJwWyfZvoUM93YnBzlMMm8ofH5mS-zB8mYrs7a9t9a6Fbny9gAvoi5DKqUdVXg7kaKg9nQ8PuV-moX3eT_59M5LlrW1MjPs2FIXYvE_VGAzAmj6oA25Ifz6r2uS9L_OC2jsSZDhrzD8g=="
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      "resolved_url": "https://www.esaamlg.org/reports/Mozambique%20FUR-April%202025.pdf",
      "title": "esaamlg.org",
      "url": "https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQEe6LP6AN_InfGMP1qcplZPbRuXjs0zNacltXeSO9dsyKFjJnaPOnNaW-P0Q-zYPLTLYPQYQasL7kTlMlPZSXCXiK7LK32cEbUm12v45Bu412r0haXy9y1B33ITw3_hx-jYQrdgw1CkdFI4OYSqEmj_6VbYrZfjTttUyVo="
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    {
      "resolved_url": "https://www.bancomoc.mz/en/areas-of-expertise/supervision/anti-money-laundering-and-countering-the-financing-of-terrorism-and-proliferation/",
      "title": "www.bancomoc.mz",
      "url": "https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQG81sXOKFu86FdwkTsFIxH7wFRtpx31hPGsWIX7GE5uRvK3bdh7A4yyPl090aGhdctlwn-oAjqV61rJiO6OGiUtplM-Nenw66shN5nvJTkm7MqamRSa-w30PWStUnQ31tXl6_g8mQskqobXvfmRK9vqFC8bS_uDI_aO_884bgl0qPKrdTR-TbX1BHte26TzDiUnq1F_TjSk_vYTZ2m8sM3cdy9hDRuXwh66VONftnt1FcZT1AHGQO3heoQaPXRr6NdOMAUZy_B4"
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    {
      "resolved_url": "https://blog.mexc.com/wiki/is-crypto-legal-in-mozambique/",
      "title": "mexc.com",
      "url": "https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQFEtDfIimPtu2ycaMRa5Sllt3TMObjYPw1n2yh0FXkSdIKPOkEmiq4MnX2tdDwMfi9sPKHnlOIzzHdVXtH18avJyXY-myNj_SP2MFYkNYhpjmnjp0Le_K_efPt2NdrxVooOEcmiBi0MLdMu57UnkbFPGGkn"
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    {
      "resolved_url": "https://www.bancomoc.mz/media/sz0gnzrh/bm-annual-report-2023-24-12-2023_v02.pdf",
      "title": "www.bancomoc.mz",
      "url": "https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQFgh5fFsqpyK4OhfYY_X0B-Ig6ktooi1ifeP1wHpOSSDnnw27GIs00bOS08shNctMOKQoKk834CzjZKsBTHJqDlnlvVytPJ3Vo9EeIkNl3gmSD5897PpCJxyw_x-LJ9Wp2zOEB6AtmWEl9dkMtz9R17euHqIlfK8SYohGy-JXvoZQ7OGyS2VIW8Pg=="
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      "resolved_url": "https://www.bancomoc.mz/media/dbmbrzgh/the-challenge-of-new-technologies-in-anti-money-laundering-countering-the-financing-of-terrorism-and-proliferation-of-weapons-of-mass-destruction.pdf",
      "title": "www.bancomoc.mz",
      "url": "https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQFTSRKBt5SdZQbWTc8ci5tfXApnIbWwpWP3QHVu2rWqmivzsNVZUI-Vo8kmAuD2R9lrWqLIg9ZI4w4qYS5C1uT-mYbffEOGj3W7VF5Yp3SFyHxcQr7nmPnrlVvJ64KyvLgbu7p4JV_EWmTlQ7dv5cY7dy8ZHwlL9wJqsliY071FxkSfWlmDmL1LyIlDbEFT2sbty1bj_Vd4ouFYQhAwJ1Ip75z15T6vTsHYqnmM1jb5E5jI9UzcOMTQC6Doggqd1kfOHm9C2E-XCyiNC76xa81IyYj3QfPz71mmNH4ELKjT1iz4eXg66D4sPvVthvRL2wmf_lsoZu9a"
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    {
      "resolved_url": "https://www.jlaadvogados.com/approvalofthelegalframework?lang=en",
      "title": "jlaadvogados.com",
      "url": "https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQEbQe4kbMLDA8q4Q_59aPCtZTaOGOUDlFaUBP_oPXFIEbhe4Lac83NN6JaMZyPYyoTcaD6XS7sdR-jAKNSDG31MtO9EwWFp8MbdQRHXJTc4LCeBMKaQRkwgjoaq-Pfs5eIIyAq9V7-19MmAHruGZArT66w5Z8l-DbK6GQ=="
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    {
      "resolved_url": "https://aimnews.org/2025/02/07/bank-of-mozambique-sanctions-nine-institutions-for-violation-of-financial-rules/",
      "title": "aimnews.org",
      "url": "https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQGaRio89baFYxSAblHNmHOf2gMUHEjUEYVPe_ZQVODSdhbm0ww7a8N5rNEuIp_DvhDgdI8HunoKqllKSOA0uJEVhF5z4dkjTLxvPmqlQrqwGX1TZnlgh9jcTDxl63qDUrkKSurwpUTohfGvRJ0NHJ20ytcSBkQkmurvZQzTabYYz5qejihbvEKKn5MFJ7ufKiLkYq54ubrl_7OY04EL_5YYKXjkJzSVR5zbbQ=="
    },
    {
      "resolved_url": "https://blog.voveid.com/kyc-compliance-in-mozambique-a-2025-guide-for-fintechs-and-digital-platforms/",
      "title": "voveid.com",
      "url": "https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQFvbNrkPGNcY9bhADtnnW2PbBy1nOoNaJ7_d55dpDS7zAcQ0QRq4ZK6PWzvGepNujodkUrgblxT9kBsgMX2S6WoERSggUqv2sfcpTJ11asVNYFG0HmBvNtb7FfJFwBX1uQS2zG0lMPdpMlrmMiy9Sr_0dcVkX5yc-foRozAs8GIK9knhd_vDYHmsO3QnQIBMWvNHoCr4G4v0-W8taeA1EY="
    }
  ],
  "status": "Gray-Zone",
  "structured_data": {
    "confidence_level": "High",
    "detailed_analysis": "Mozambique\u0027s regulatory status for cryptocurrency is currently classified as \u0027Gray-Zone\u0027 because, although a formal licensing regime exists on paper, it has not yet resulted in a functioning, regulated market. The Bank of Mozambique (Banco de Mo\u00e7ambique) took a significant step towards regulation with the enactment of Law No. 14/2023 and the subsequent Notice No. 4/GBM/2023 in September 2023. These regulations explicitly brought Virtual Asset Service Providers (VASPs) under the AML/CFT umbrella and mandated registration with the central bank. The framework requires VASPs to demonstrate robust compliance controls, physical presence, and fit-and-proper management.\n\nHowever, despite the regulation coming into force in November 2023, there is no evidence that any VASP has been successfully registered as of late 2025. This \u0027paper tiger\u0027 situation\u2014where a law exists but no licenses are issued\u2014is a classic indicator of a Gray-Zone environment. It suggests either that the requirements are too onerous for local operators or that the central bank is delaying approvals to maintain a de facto ban while appearing compliant with FATF standards.\n\nOperationally, the environment is restrictive. The Bank of Mozambique has aggressively enforced AML/CFT rules, fining major commercial banks (such as BCI and Millennium BIM) for compliance failures. This has created a chilling effect where banks refuse to process transactions related to crypto assets to avoid regulatory scrutiny. Additionally, strict foreign exchange controls, reinforced by Notice No. 9/GBM/2025, limit the amount of capital residents can transfer abroad via card payments, effectively blocking access to international crypto exchanges.\n\nConsequently, while retail trading is not explicitly criminalized for individuals, the lack of local registered options and the banking sector\u0027s blockade make it difficult to operate legally. Users are forced to rely on peer-to-peer (P2P) markets or foreign platforms, often circumventing FX controls, which places them in a precarious legal position. The central bank continues to warn that such activities are at the user\u0027s sole risk.",
    "executive_summary": "Cryptocurrency in Mozambique falls into a Gray-Zone due to a disconnect between the legal framework and operational reality. While the Bank of Mozambique established a mandatory registration regime for Virtual Asset Service Providers (VASPs) in late 2023 via Notice No. 4/GBM/2023, no entities have been publicly confirmed as registered more than two years later. Furthermore, strict foreign exchange controls and recent banking sector fines for AML violations have led to a de facto restriction where commercial banks often block crypto-related transactions.",
    "important_considerations": [
      "No public record of any VASP successfully registering despite the regime being active since late 2023.",
      "Commercial banks are extremely risk-averse due to heavy fines for AML breaches, often resulting in blocked crypto transactions.",
      "Strict foreign exchange controls (Notice 9/GBM/2025) severely limit the ability to buy crypto assets from international platforms.",
      "Trading on unregistered platforms is considered \u0027at the user\u0027s own risk\u0027 but is not explicitly criminalized for the individual user."
    ],
    "key_regulatory_pillars": [
      "Bank of Mozambique (Banco de Mo\u00e7ambique) as the primary regulator for VASPs",
      "Mandatory registration for all entities providing virtual asset services (exchange, transfer, custody)",
      "Strict AML/CFT compliance under Law No. 14/2023, designating VASPs as financial institutions",
      "Foreign exchange controls limiting cross-border payments, impacting access to foreign exchanges"
    ],
    "landmark_legislation": [
      {
        "date_enacted": "2023-09-14",
        "identifier": "Aviso n.\u00ba 4/GBM/2023",
        "name": "Notice No. 4/GBM/2023 (Registration of Virtual Asset Service Providers)",
        "summary": "Establishes the mandatory registration framework for VASPs with the Bank of Mozambique. Defines activities requiring registration (exchange, transfer, custody) and sets fines for non-compliance. Came into force on November 14, 2023.",
        "url": "https://www.bancomoc.mz/fm/rules/2023/09/14/Aviso-4-GBM-2023.pdf"
      },
      {
        "date_enacted": "2023-08-28",
        "identifier": "Law No. 14/2023",
        "name": "Law on Preventing and Combating Money Laundering and Terrorist Financing",
        "summary": "Designates VASPs as financial institutions subject to AML/CFT obligations. Grants the Bank of Mozambique authority to regulate and supervise the sector.",
        "url": "https://www.bancomoc.mz/fm/rules/2023/08/28/Lei-14-2023.pdf"
      },
      {
        "date_enacted": "2025-12-09",
        "identifier": "Aviso n.\u00ba 9/GBM/2025",
        "name": "Notice No. 9/GBM/2025 (Limits on Payments Abroad)",
        "summary": "Establishes strict limits on payments made abroad using bank cards, which effectively restricts residents from purchasing cryptocurrency on foreign exchanges.",
        "url": "https://www.bancomoc.mz"
      }
    ],
    "notes_and_comments": "The \u0027Gray-Zone\u0027 determination is driven by the \u0027Red Flag\u0027 that no licenses have been issued more than 12 months after the regulation was enacted. If a list of registered VASPs is published, the status would immediately upgrade to \u0027Allowed-Regulated\u0027. The \u0027April 2025\u0027 bank ban mentioned in some user forums appears to be a misinterpretation of general FX control notices (Notice 9/GBM/2025) rather than a specific crypto prohibition.",
    "primary_sources": [
      {
        "date": "2023-09-14",
        "key_quote": "The prior registration of entities wishing to carry out activities related to virtual assets is now mandatory, under penalty of a misdemeanor.",
        "source_type": "regulator",
        "title": "Notice No. 4/GBM/2023 - Registration of Virtual Asset Service Providers",
        "url": "https://www.bancomoc.mz"
      },
      {
        "date": "2023-08-28",
        "key_quote": "Considers virtual asset service providers to be financial institutions for the purposes of complying with their duties in terms of preventing and combating ML/TF.",
        "source_type": "law_text",
        "title": "Law No. 14/2023 - AML/CFT Legal Framework",
        "url": "https://www.bancomoc.mz"
      },
      {
        "date": "2024-05-17",
        "key_quote": "The legal framework for the registration of virtual asset service providers at the Banco de Mo\u00e7ambique was established, as provided by Notice No. 4/GBM/2023.",
        "source_type": "regulator",
        "title": "Annual Report 2023 - Banco de Mo\u00e7ambique",
        "url": "https://www.bancomoc.mz"
      }
    ],
    "remaining_uncertainties": [
      "Whether any VASP applications are currently under review or if the regulator is implicitly rejecting them.",
      "The specific threshold at which FX controls (Notice 9/GBM/2025) trigger blocks on crypto merchant codes (MCC 6051).",
      "If the central bank plans to issue a \u0027sandbox\u0027 framework to bridge the gap between the strict law and the lack of registrants."
    ],
    "secondary_sources": [
      {
        "date": "2023-11-06",
        "key_quote": "Notice no. 4/GBM/2023 will come into force on 14 November 2023.",
        "source_type": "analysis",
        "title": "Registration of Virtual Asset Service Providers before the Mozambique Central Bank",
        "url": "https://www.mdradvogados.com/en/media/legal-alert/registration-of-virtual-asset-service-providers-before-the-mozambique-central-bank/"
      },
      {
        "date": "2025-02-06",
        "key_quote": "The Bank of Mozambique announced today that it has fined nine credit institutions... for violating prudential rules to prevent and combat money laundering.",
        "source_type": "news",
        "title": "Bank of Mozambique Fines Credit Institutions",
        "url": "https://clubofmozambique.com/news/mozambique-central-bank-fines-nine-financial-institutions-for-breaches-of-regulations-276185/"
      }
    ],
    "status": "Gray-Zone"
  }
}