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

Date of Report: 2025-07-04

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 in Cabo Verde but is now subject to specific regulations, primarily concerning Anti-Money Laundering and Counter-Financing of Terrorism (AML/CFT). While the activity is not prohibited, entities providing services related to virtual assets must register with the central bank, the Banco de Cabo Verde (BCV).

2. Detailed Narrative Explanation

Cabo Verde's approach to cryptocurrency has evolved from a position of caution to one of regulated acceptance. For years, the country's financial authorities, led by the Banco de Cabo Verde (BCV), issued warnings about the risks associated with virtual currencies, highlighting their volatility, lack of legal tender status, and potential for use in illicit activities. A significant alert was issued in March 2018, where the BCV cautioned the public about the dangers of acquiring, holding, or trading cryptocurrencies like Bitcoin. The bank emphasized that these assets were not guaranteed by any central authority and offered no consumer protection.

This cautious stance has more recently shifted towards establishing a regulatory framework. A key development was the enactment of Law No. 30/X/2023 of June 21, 2023. This law mandates that any entity wishing to conduct activities involving virtual assets within Cabo Verde must register with the Banco de Cabo Verde. The primary focus of this legislation is to bring virtual asset service providers (VASPs) under the umbrella of the country's AML/CFT regime. This aligns with international standards set by bodies like the Financial Action Task Force (FATF).

In a 2023 interview, the Prime Minister of Cabo Verde, Ulisses Correia e Silva, confirmed the existence of this legislation. He stated that the country has the necessary legal conditions for the development of the cryptocurrency industry, with the Banco de Cabo Verde overseeing the sector to prevent money laundering and terrorist financing.

Further cementing this regulatory approach, the Banco de Cabo Verde has been working on detailed implementation rules. A draft notice from 2024 outlines the specific procedures and documentation required for the registration of entities that deal with virtual assets. This indicates a clear move towards operationalizing the 2023 law and actively supervising the sector.

It is important to note that while trading is being regulated, other crypto-related activities face stricter measures. A law passed in April 2024, Lei n.º 3/24 de 10 de Abril, explicitly prohibits the activity of mining cryptocurrencies and other virtual assets.

The regulatory landscape is also shaped by Cabo Verde's broader digital transformation strategy. The government has been actively modernizing its legal framework for digital services and e-commerce to foster a resilient and agile economy. In parallel, the Banco de Cabo Verde is studying the potential introduction of a central bank digital currency (CBDC), indicating a proactive, albeit cautious, engagement with financial innovation.

In summary, individual citizens and residents in Cabo Verde are permitted to trade cryptocurrencies. However, the space is no longer unregulated. Service providers are now subject to registration and AML/CFT compliance under the supervision of the Banco de Cabo Verde, marking a significant step towards a formalized and monitored cryptocurrency market.

3. Relevant Text Excerpts

• 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...).
  > "Para efeitos do presente Aviso, consideram-se: a) «Ativo virtual», uma representação digital de valor que não esteja necessariamente ligada a uma moeda legalmente estabelecida e que não possua o estatuto jurídico de moeda fiduciária, mas que é aceite por pessoas singulares ou coletivas como meio de troca ou de investimento e que pode ser transferida, armazenada e comercializada por via eletrónica;" (For the purposes of this Notice, the following are considered: a) «Virtual asset», a digital representation of value that is not necessarily linked to a legally established currency and that does not have the legal status of fiat money, but that is accepted by natural or legal persons as a medium of exchange or investment and that can be transferred, stored and traded electronically;).

• 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 (Alert, 2018)
  > "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, considerando a popularidade crescente que vêm assumindo a nível mundial." (This alert is issued to highlight the risks that may be incurred by those who acquire, hold or trade virtual currencies, or crypto-currencies, such as Bitcoin, considering the growing popularity they have been assuming worldwide.).

• 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 - 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
2. 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
3. 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
4. Legis-Palop.org - Newsletter mentioning the ban on crypto mining (May 2024): https://www.legis-palop.org/bd/newsletter/2024/newsletter-maio-2024
5. 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
6. 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/
7. Banco de Cabo Verde - AML/CFT Information: https://www.bcv.cv/pt/supervisao/prevencao-a-lavagem-de-capitais-e-financiamento-ao-terrorismo