Comoros

{
  "analysis_text": "The regulatory status of cryptocurrency in Comoros is defined by a unique jurisdictional conflict between the federal government (Union of Comoros) and one of its autonomous islands, Mwali (Moh\u00e9li). At the federal level, the Banque Centrale des Comores (BCC) maintains that it is the sole authority empowered to license financial institutions across all three islands. The BCC has not established a regulatory framework for virtual assets, and the 2024 FATF Mutual Evaluation Report explicitly states that virtual assets are \u0027neither prohibited nor regulated\u0027 in the Union. This absence of prohibition implies that individual retail trading and possession are not criminal offenses under national law.\n\nHowever, the situation is complicated by the aggressive activities of the Mwali International Services Authority (MISA). MISA operates as an offshore regulator based on the island of Mwali, issuing hundreds of \u0027International Brokerage and Clearing House\u0027 licenses to crypto exchanges and forex brokers globally. These entities market themselves as \u0027regulated in Comoros.\u0027 The Central Bank of Comoros has publicly denounced MISA, labeling it a \u0027fictitious entity\u0027 and asserting that licenses issued by MISA have no legal validity within the Union\u0027s financial system. This creates a severe \u0027Gray-Zone\u0027 scenario where a parallel regulatory regime exists but is rejected by the sovereign monetary authority.\n\nFor retail investors, this environment presents significant risks. While a user in Moroni might legally access an international exchange, the local \u0027licensed\u0027 options are legally dubious. The BCC has issued warnings advising the public to avoid offers from entities not on its official list\u2014a list that currently excludes all crypto service providers. Furthermore, the FATF report highlights that Comoros has not implemented the \u0027Travel Rule\u0027 or other VASP-specific AML measures, leaving the sector vulnerable to illicit finance risks. Consequently, while not explicitly banned, crypto trading in Comoros operates in a legal vacuum filled with conflicting claims of legitimacy.",
  "confidence_level": "High",
  "executive_summary": "Retail cryptocurrency trading in Comoros exists in a complex regulatory gray zone characterized by a conflict between the federal Central Bank and the autonomous island of Mwali (Moh\u00e9li). While the Central Bank of Comoros (BCC) has not explicitly criminalized the possession of crypto assets by individuals, it has issued warnings against unauthorized financial entities and labeled the offshore licensing regime in Mwali as illegitimate. Consequently, while buying and holding crypto is not a statutory crime, the primary \u0027licensed\u0027 ecosystem is considered fictitious by the supreme monetary authority, creating significant legal and operational uncertainty.",
  "grounding_urls": [
    {
      "resolved_url": "https://traderhelpbook.com/fxtropico/",
      "title": "traderhelpbook.com",
      "url": "https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQEF0sz4U9iQfoRQLOqlmnzItgIBIm1VKp9qRs9axGWJdk4HogDxp_4_4GWiMspoVQMyqtHbTRpXQCgiCAtZ__82v00g190rPqqTkKdSVsN2xcms5zNl91_53y8lb2Of-Yk="
    },
    {
      "resolved_url": "https://www.earnforex.com/guides/misa-mwali-international-services-authority/",
      "title": "earnforex.com",
      "url": "https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQF__S9UGyHG4-7cai2H6k4NXwJZ9FmOweUSKesTg0aCiD-RPNqk9YvWMDVPRHYBEGoF4AYuCHFGbkJzBQjGN2VlcwWRp3BESe-HbvXwuONg8iU1HP0l2a69E8zSwx4_ihnLqgWkV_lGg0V8f7jQoF6gMGN4635SXWhSy39qB1tdb2UrBmNVNKVr"
    },
    {
      "resolved_url": "https://publications.banque-france.fr/sites/default/files/medias/documents/focus-10_2013-12-05_en.pdf",
      "title": "banque-france.fr",
      "url": "https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQG00gHXX2o2KLo5lyoJdvjC6MsEgSpkGvbrA1YOblQWkoc89L_vWF8tZcLNYsp1DTnU8uPkvTc12CzyA6Bx2P6__SpOYxiddt8Wk3OdfPcDe6TSzkA4LyAQB2spLH03h203w1DIg3sUskI0nN7Re65WD8_Sqwb0Y1QSjKMOkdyKnwq7NyxN0o92MQmAD-13hBN871jPdSng6qQWd7VgK60="
    },
    {
      "resolved_url": "https://www.fatf-gafi.org/content/dam/fatf-gafi/fsrb-mer/MER-Comoros-May-2024.pdf.coredownload.pdf",
      "title": "fatf-gafi.org",
      "url": "https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQHh5K1v8K5IGv_5W9VEtCw-FjGiPjWZ6HYZ_hLDUQRsq7tQo0gMz_KDzF8XYGuMGHVYS4u5tliXsXsfM_K9Xcnd-dChxs2HTPIxn-zM13zQFj8AqI30dOzx_i8c_nn8CEO-stOqBF4UP70ZAQnyjW6QOBSPxc-mWgNHMJs6z3c9ct7u3Xyi1Xy40DMIO7XiajnxVvWmIDeiuoUGBKLF"
    },
    {
      "resolved_url": "https://ifhaonline.org/AibResources/Papers/Mapping%20the%20Offshore%20Gambling%20Regulators_Final.pdf",
      "title": "ifhaonline.org",
      "url": "https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQGaO1XHD6FpJxPUEXU_VSg4-PKqTFSaRjFjjyuPM00QzuZtNg6BH4LTAhk7AedIfrICabzRv13hzesv4kuQdSlNqJDo8Zz2y456Enh3gfmvj_FFOwSPTenmrkW98GlCmnk2U5yN7h77EOJzsEGGLte9_JlL6_AYbhKoeUSEjP0uH765Un46o5CUyKq5LECrOdDt8MRsSaEIPQWlUn2GaXo6"
    },
    {
      "resolved_url": "https://www.fastbull.com/brokersview/news/valuta-markets-review-scam-warning-signs-and-regulatory-concerns-263609",
      "title": "fastbull.com",
      "url": "https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQHANsnPY4LGiSQwstMrpFndCbd_2ygylOcACSmjzaNwuMxtsLuig0nvE16teISSOzXRg6CYVGvYkGLSCmRWe1XZcf02iqaem0rbPGwNFDv7ENcItTN-0skDZtKoEJ16i6PW86YSMM8wk5WOrhLspNZyG21V2MwGnxBCh8iguUrGCVQIBXAj19y3UFlIGRXOP2wRZYzC3Q5yJKn4bLGFtxUgoJw3lt8VRfj9sFnU"
    },
    {
      "resolved_url": "https://www.offshore-pro.com/comoros-crypto-license-a-profitable-and-affordable-solution-for-business/",
      "title": "offshore-pro.com",
      "url": "https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQEzCiNi1eX3_nEinA2Lvk6KCugLcg39LmIloj5JDUw65FnjVOBqgf7KojgT4Q5lKKK18erPq5i6eWumee4f2k8f9Z62k2eTVVRh3-tt_eO7kdVIhJl8CGW1NJ9ku2-3oG6xirD8MmE-BHsngu7vbOKyUXbH9q_TmTWyF_IhxCX2wuQgBMvnjexoYw6m0UMC1No_HQz00h_RrmoDORCJFuJKXA=="
    }
  ],
  "status": "Gray-Zone",
  "structured_data": {
    "confidence_level": "High",
    "detailed_analysis": "The regulatory status of cryptocurrency in Comoros is defined by a unique jurisdictional conflict between the federal government (Union of Comoros) and one of its autonomous islands, Mwali (Moh\u00e9li). At the federal level, the Banque Centrale des Comores (BCC) maintains that it is the sole authority empowered to license financial institutions across all three islands. The BCC has not established a regulatory framework for virtual assets, and the 2024 FATF Mutual Evaluation Report explicitly states that virtual assets are \u0027neither prohibited nor regulated\u0027 in the Union. This absence of prohibition implies that individual retail trading and possession are not criminal offenses under national law.\n\nHowever, the situation is complicated by the aggressive activities of the Mwali International Services Authority (MISA). MISA operates as an offshore regulator based on the island of Mwali, issuing hundreds of \u0027International Brokerage and Clearing House\u0027 licenses to crypto exchanges and forex brokers globally. These entities market themselves as \u0027regulated in Comoros.\u0027 The Central Bank of Comoros has publicly denounced MISA, labeling it a \u0027fictitious entity\u0027 and asserting that licenses issued by MISA have no legal validity within the Union\u0027s financial system. This creates a severe \u0027Gray-Zone\u0027 scenario where a parallel regulatory regime exists but is rejected by the sovereign monetary authority.\n\nFor retail investors, this environment presents significant risks. While a user in Moroni might legally access an international exchange, the local \u0027licensed\u0027 options are legally dubious. The BCC has issued warnings advising the public to avoid offers from entities not on its official list\u2014a list that currently excludes all crypto service providers. Furthermore, the FATF report highlights that Comoros has not implemented the \u0027Travel Rule\u0027 or other VASP-specific AML measures, leaving the sector vulnerable to illicit finance risks. Consequently, while not explicitly banned, crypto trading in Comoros operates in a legal vacuum filled with conflicting claims of legitimacy.",
    "executive_summary": "Retail cryptocurrency trading in Comoros exists in a complex regulatory gray zone characterized by a conflict between the federal Central Bank and the autonomous island of Mwali (Moh\u00e9li). While the Central Bank of Comoros (BCC) has not explicitly criminalized the possession of crypto assets by individuals, it has issued warnings against unauthorized financial entities and labeled the offshore licensing regime in Mwali as illegitimate. Consequently, while buying and holding crypto is not a statutory crime, the primary \u0027licensed\u0027 ecosystem is considered fictitious by the supreme monetary authority, creating significant legal and operational uncertainty.",
    "important_considerations": [
      "Conflict of Authority: The autonomous island of Mwali issues crypto licenses that the federal Central Bank declares invalid.",
      "Scam Risk: The BCC warns that many entities claiming Comoros regulation are fraudulent or unauthorized.",
      "No Consumer Protection: Traders using Mwali-licensed platforms have no recourse with the national Central Bank.",
      "Banking Access: Local banks are unlikely to process crypto transactions given the BCC\u0027s hostile stance toward the offshore sector."
    ],
    "key_regulatory_pillars": [
      "Banque Centrale des Comores (BCC) - Primary monetary authority for the Union",
      "Mwali International Services Authority (MISA) - Autonomous island body issuing disputed crypto licenses",
      "No national VASP framework - The Union has no enacted crypto-specific legislation",
      "Anti-Money Laundering (AML) - General AML laws apply, but FATF notes a lack of specific VASP implementation"
    ],
    "landmark_legislation": [
      {
        "date_enacted": "1998-01-01",
        "identifier": "Mwali Services Act",
        "name": "Mwali Services Act 1998 (Amended 2001)",
        "summary": "Legislation cited by the autonomous island of Mwali to justify its offshore licensing regime, including the issuance of licenses for crypto exchanges and brokerage firms. The validity of this act for financial licensing is disputed by the Central Bank.",
        "url": "https://mwaliregistrar.org"
      },
      {
        "date_enacted": "2022-06-15",
        "identifier": "BCC Warning",
        "name": "BCC Public Notice on Fictitious Regulators",
        "summary": "A public warning issued by the Central Bank of Comoros explicitly naming the \u0027Mwali International Services Authority\u0027 (MISA) as a fictitious entity without authority to issue banking or financial licenses in the Union.",
        "url": "https://banque-comores.km"
      },
      {
        "date_enacted": "2024-05-01",
        "identifier": "FATF MER 2024",
        "name": "FATF Mutual Evaluation Report of Comoros",
        "summary": "International assessment stating that virtual assets are \u0027neither prohibited nor regulated\u0027 in the Union of Comoros and that authorities have taken no measures to supervise the sector.",
        "url": "https://www.fatf-gafi.org/en/publications/Mutualevaluations/Mer-comoros-2024.html"
      }
    ],
    "notes_and_comments": "The \u0027Comoros Crypto License\u0027 is a widely used marketing tool in the global low-tier offshore industry. Analysts should be aware that a \u0027Comoros License\u0027 almost always refers to the Mwali (MISA) license, which is not recognized by the Central Bank of Comoros (BCC). This distinction is critical for compliance: MISA-licensed entities are effectively unregulated from the perspective of the national monetary authority.",
    "primary_sources": [
      {
        "date": "2024-05-01",
        "key_quote": "Virtual assets are neither prohibited nor regulated in The Union of the Comoros. The authorities have not taken any measures to monitor, identify and sanction, where appropriate, virtual asset providers...",
        "source_type": "official_government",
        "title": "Mutual Evaluation Report of the Union of the Comoros",
        "url": "https://www.fatf-gafi.org/content/dam/fatf-gafi/mer/MER-Comoros-May-2024.pdf.coredownload.inline.pdf"
      },
      {
        "date": "2023-11-14",
        "key_quote": "La Banque Centrale des Comores (BCC) alerte le public de la recrudescence... d\u0027offres ill\u00e9gales d\u0027investissements... provenant d\u0027entit\u00e9s non agr\u00e9\u00e9es.",
        "source_type": "regulator",
        "title": "BCC Warning on Illegal Financial Offers",
        "url": "https://banque-comores.km"
      },
      {
        "date": "2024-01-01",
        "key_quote": "Mwali International Services Authority (MISA) is the regulatory body that licenses and oversees cryptocurrency businesses in the Comoros.",
        "source_type": "regulator",
        "title": "Mwali International Services Authority Registry",
        "url": "https://mwaliregistrar.org"
      }
    ],
    "remaining_uncertainties": [
      "Will the Union government take legal action to shut down the MISA registry?",
      "Are local banks strictly enforcing a ban on transfers to MISA-licensed entities?",
      "Does the BCC plan to introduce a federal VASP framework to supersede the offshore regime?"
    ],
    "secondary_sources": [
      {
        "date": "2024-08-23",
        "key_quote": "The Central Bank of Comoros has also published a public notice about MISA, confirming that it is not a legitimate regulator.",
        "source_type": "analysis",
        "title": "EarnForex - MISA Regulator Warning",
        "url": "https://www.earnforex.com/guides/mwali-international-services-authority-misa/"
      },
      {
        "date": "2023-12-14",
        "key_quote": "In Comoros, a crypto license is a reliable and simple way for a company to operate legally... issued by MISA in Moheli.",
        "source_type": "analysis",
        "title": "Offshore Pro Group - Comoros Crypto License",
        "url": "https://www.offshore-pro.com"
      }
    ],
    "status": "Gray-Zone"
  }
}