Tonga

{
  "analysis_text": "The regulatory status of cryptocurrency in Tonga is best classified as a \u0027Gray-Zone\u0027. While the act of an individual buying or holding Bitcoin is not explicitly criminalized in the penal code, the National Reserve Bank of Tonga (NRBT) has created a regulatory blockade that prevents the establishment of a legal local market. The NRBT maintains that under the National Reserve Bank of Tonga Act, any entity offering crypto assets must be licensed, yet it has publicly stated that \u0027NO business license has been issued\u0027 to any such entity. This creates a de facto ban on domestic exchanges and custodians.\n\nThe political landscape regarding crypto in Tonga has been characterized by a sharp divide between crypto-advocate Lord Fusitu\u0027a and the conservative central bank. Between 2021 and 2023, Lord Fusitu\u0027a campaigned heavily for a bill to make Bitcoin legal tender, modeled after El Salvador\u0027s legislation. However, this bill failed to gain the necessary parliamentary support or Royal Assent. Instead, the NRBT and the government have reinforced their cautious stance, prioritizing financial stability and the protection of foreign reserves over innovation in digital assets.\n\nIn late 2025, reports surfaced that Tonga\u0027s National Anti-Money Laundering Committee (NAMLC) reaffirmed a ban on Virtual Asset Service Providers (VASPs). This decision aligns with a broader trend in the Pacific region (similar to Fiji) where regulators, lacking the capacity to effectively supervise complex crypto-assets, opt for prohibition or strict exclusion to comply with FATF standards. Consequently, Tongans wishing to trade must rely on offshore platforms, doing so entirely at their own risk without any local consumer protection or legal recourse.\n\nPractically, this means that while retail trading is not a crime, it is operationally difficult. The Foreign Exchange Control Act 2018 imposes strict controls on capital outflows, and local banks are unlikely to facilitate transfers to known crypto exchanges. The NRBT continues to issue specific warnings against crypto investment schemes, highlighting that payments are irreversible and unprotected. The environment is one of tolerance for individual risk-taking but zero tolerance for institutional adoption or business operations.",
  "confidence_level": "High",
  "executive_summary": "Retail cryptocurrency trading in Tonga exists in a regulatory gray zone where individual possession is not explicitly criminalized, but the environment is highly restrictive and hostile to intermediaries. The National Reserve Bank of Tonga (NRBT) has repeatedly warned that cryptocurrencies are not legal tender and has not issued any licenses for crypto-service providers, effectively banning local exchanges. While a high-profile push by Lord Fusitu\u0027a to make Bitcoin legal tender garnered international attention, the proposed legislation failed to pass, and the National Anti-Money Laundering Committee (NAMLC) has reportedly reaffirmed a ban on Virtual Asset Service Providers (VASPs) due to financial crime risks.",
  "grounding_urls": [
    {
      "resolved_url": "https://www.reservebank.to/index.php/news/general-public-awareness-on-legal-tender-external-reserves-and-investment-on-bitcoin",
      "title": "reservebank.to",
      "url": "https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQE4jr00GZThjFLCmMd22Nx2iIgQQ4TntibJh5IV9JI9EcPQuU03ADg4rw2M7FD5uZEu1V8gl29FkTmRXyaBTnL0Vv7A31jKn-gPhsfzKjwXYH4MF_mFsf59tXlomgqmlTjFnmY6rc1CXQx0GB0aF4x9AFgpFhip4tG9YM2M1lCV-MxxJmBSxbMakqdYVYSuLDWT_Vq1986wBKIl_dFab47RkKAnpSbvMKB6OKYXA_QMMn74GlNFIv6PSQ=="
    },
    {
      "resolved_url": "https://behindmlm.com/mlm-reviews/dreamtrips-review-v2-who-is-verona-international-holdings/",
      "title": "behindmlm.com",
      "url": "https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQH2PrXTn3GRrcff-62MovM1UKMew38cUiycZ6LqcKzD2k2dzlG3kDemeFDGP5geqy5nMsI005EscPbXGTsPEbTm6cswoh0qcdNO1L9r7pCjIvsBVUkKoIdbzwn8RU4jZaJZEPpXz8OqnbWZ9-ZBMXotbopn5Ccopb08F-9XVKRQua7gX2WwgbVnfWyrD6HumXfV7Z7_6drL"
    },
    {
      "resolved_url": "https://www.reservebank.to/index.php/news/press-release-cryptocurrency-investment-scam",
      "title": "reservebank.to",
      "url": "https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQEU4YrzVrpI31QtL-msuWgCaeTr70OMiXp7pdtj2cZj1weBGSLtC2J32B7CY6ghctCYLZXXl_W8w-Jm-CbmLOF6AWCeecgxStASMJlSJHLuFeds3fhuoSOhG-_8jwiIn4HTxicKeDaO7VI7VFgWCacCdcPbrNRotW8ry0bazW0uSfmZZcQ8FkbDnrAaUjVWbgDu"
    },
    {
      "resolved_url": "https://behindmlm.com/companies/qubitlife-collapses-no-withdrawals-ceo-greg-limon-mia/",
      "title": "behindmlm.com",
      "url": "https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQHY-T7pmcjLDcc79dSYePVWIKtAkOeigpepwJJmMINX_U2Mz0-IlqbyJmAby_ry7eaFDmVT_g6iuHY0JDI16ViB0Si4U0A17KwrIpUjSR-Mt19zeSIpzyYlkCdjvd9wI5WejPGP0Wtnxgw8_sV39HNfXuIyDpkwq8GN83q_395LRfPs7qxtXg8yzgCe-yemVk_Y"
    },
    {
      "resolved_url": "https://www.rnz.co.nz/international/pacific-news/444846/tongan-reserve-bank-dampens-cryptocurrency-talk",
      "title": "rnz.co.nz",
      "url": "https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQGchPSngHwSNnxhpz65nkvd8tSmDJprB_OHwz-qJFhlCSC-kcyrx2i7Ke_Jp89YwKH7d9ruvHXQjGjZL0k6kjtmnAXZ3bBMhCUud61T7fBuob81CQJFLW84_38oiAyXoe2Xt6FaLrNasFDTHBc-FcIS4RAd3lNGXn2kiO7ZY7o_wdu5mF-vajE3c0eWLdviJ5gBijVoaHOFMIHJeJrvYr6xLnU="
    }
  ],
  "status": "Gray-Zone",
  "structured_data": {
    "confidence_level": "High",
    "detailed_analysis": "The regulatory status of cryptocurrency in Tonga is best classified as a \u0027Gray-Zone\u0027. While the act of an individual buying or holding Bitcoin is not explicitly criminalized in the penal code, the National Reserve Bank of Tonga (NRBT) has created a regulatory blockade that prevents the establishment of a legal local market. The NRBT maintains that under the National Reserve Bank of Tonga Act, any entity offering crypto assets must be licensed, yet it has publicly stated that \u0027NO business license has been issued\u0027 to any such entity. This creates a de facto ban on domestic exchanges and custodians.\n\nThe political landscape regarding crypto in Tonga has been characterized by a sharp divide between crypto-advocate Lord Fusitu\u0027a and the conservative central bank. Between 2021 and 2023, Lord Fusitu\u0027a campaigned heavily for a bill to make Bitcoin legal tender, modeled after El Salvador\u0027s legislation. However, this bill failed to gain the necessary parliamentary support or Royal Assent. Instead, the NRBT and the government have reinforced their cautious stance, prioritizing financial stability and the protection of foreign reserves over innovation in digital assets.\n\nIn late 2025, reports surfaced that Tonga\u0027s National Anti-Money Laundering Committee (NAMLC) reaffirmed a ban on Virtual Asset Service Providers (VASPs). This decision aligns with a broader trend in the Pacific region (similar to Fiji) where regulators, lacking the capacity to effectively supervise complex crypto-assets, opt for prohibition or strict exclusion to comply with FATF standards. Consequently, Tongans wishing to trade must rely on offshore platforms, doing so entirely at their own risk without any local consumer protection or legal recourse.\n\nPractically, this means that while retail trading is not a crime, it is operationally difficult. The Foreign Exchange Control Act 2018 imposes strict controls on capital outflows, and local banks are unlikely to facilitate transfers to known crypto exchanges. The NRBT continues to issue specific warnings against crypto investment schemes, highlighting that payments are irreversible and unprotected. The environment is one of tolerance for individual risk-taking but zero tolerance for institutional adoption or business operations.",
    "executive_summary": "Retail cryptocurrency trading in Tonga exists in a regulatory gray zone where individual possession is not explicitly criminalized, but the environment is highly restrictive and hostile to intermediaries. The National Reserve Bank of Tonga (NRBT) has repeatedly warned that cryptocurrencies are not legal tender and has not issued any licenses for crypto-service providers, effectively banning local exchanges. While a high-profile push by Lord Fusitu\u0027a to make Bitcoin legal tender garnered international attention, the proposed legislation failed to pass, and the National Anti-Money Laundering Committee (NAMLC) has reportedly reaffirmed a ban on Virtual Asset Service Providers (VASPs) due to financial crime risks.",
    "important_considerations": [
      "No Legal Tender Status: Bitcoin is not legal tender; the \u0027Bitcoin Bill\u0027 proposed by Lord Fusitu\u0027a did not pass.",
      "Banking Restrictions: Banks are advised against processing crypto transactions; the NRBT refuses to hold crypto as foreign reserves.",
      "VASP Ban: Reports indicate the National Anti-Money Laundering Committee (NAMLC) has reaffirmed a ban on VASPs to mitigate AML/CFT risks.",
      "Scam Prevalence: The NRBT frequently issues warnings about specific crypto investment scams targeting Tongans (e.g., \u0027BG Wealth Sharing\u0027)."
    ],
    "key_regulatory_pillars": [
      "National Reserve Bank of Tonga (NRBT) - Primary financial regulator and issuer of currency",
      "National Anti-Money Laundering Committee (NAMLC) - Oversight body for AML/CFT compliance",
      "De Facto Ban on Local Intermediaries - Licensing requirement exists but no licenses are issued",
      "Consumer Risk Warnings - NRBT emphasizes that crypto investments are \u0027at one\u0027s own risk\u0027 and lack legal protection"
    ],
    "landmark_legislation": [
      {
        "date_enacted": "1989-07-01",
        "identifier": "Section 4A(k)",
        "name": "National Reserve Bank of Tonga Act",
        "summary": "Grants the NRBT authority to regulate and supervise non-bank financial institutions. The NRBT uses this authority to require licenses for crypto-asset providers, though it refuses to issue them.",
        "url": "https://www.reservebank.to/"
      },
      {
        "date_enacted": "2018-11-01",
        "identifier": "Act 2018",
        "name": "Foreign Exchange Control Act",
        "summary": "Regulates the movement of foreign exchange and gold. While not explicitly naming crypto, it empowers the NRBT to control foreign reserves, which the bank has stated cannot be invested in volatile crypto assets.",
        "url": "https://ago.gov.to/cms/images/leylaws/Foreign_Exchange_Control_Act_2018.pdf"
      },
      {
        "date_enacted": "2021-06-16",
        "identifier": "Press Release",
        "name": "NRBT Public Notice on Cryptocurrency",
        "summary": "Explicitly states that cryptocurrency is not legal tender, warns against its volatility, and clarifies that no business licenses have been issued for crypto activities.",
        "url": "https://www.reservebank.to/"
      }
    ],
    "notes_and_comments": "The \u0027legal tender\u0027 narrative pushed by Lord Fusitu\u0027a is widely cited in older crypto news but is effectively dead as of late 2025. The NRBT\u0027s stance has remained consistent and hostile.",
    "primary_sources": [
      {
        "date": "2021-06-15",
        "key_quote": "The National Reserve Bank of Tonga warns the general public that NO business license has been issued to a business in Tonga to offer crypto-assets, such as Bitcoin.",
        "source_type": "regulator",
        "title": "General Public Awareness on Legal Tender, External Reserves, and Investment on Bitcoin",
        "url": "https://www.reservebank.to/"
      },
      {
        "date": "2025-12-02",
        "key_quote": "Cryptocurrency payments have no legal protections. The National Reserve Bank cannot step in to help you get your money back.",
        "source_type": "regulator",
        "title": "Warning Notice: Beware of Cryptocurrency Investment Scam",
        "url": "https://www.reservebank.to/"
      },
      {
        "date": "2021-06-16",
        "key_quote": "Cryptocurrency is not legal tender in Tonga... The release said anyone who offered investments in crypto-assets such as bitcoin in Tonga would need a licence, and no licence had been issued.",
        "source_type": "news",
        "title": "Tongan reserve bank dampens cryptocurrency talk",
        "url": "https://www.rnz.co.nz/international/pacific-news/444853/tongan-reserve-bank-dampens-cryptocurrency-talk"
      }
    ],
    "remaining_uncertainties": [
      "The exact text of the NAMLC \u0027ban\u0027 on VASPs is referenced in secondary sources but the primary circular is not available online.",
      "Whether the Foreign Exchange Control Act is actively used to block individual wire transfers to foreign crypto exchanges."
    ],
    "secondary_sources": [
      {
        "date": "2025-09-23",
        "key_quote": "Tonga\u0027s National Anti-Money Laundering Committee (NAMLC) has reaffirmed a ban on virtual asset service providers (VASPs) in the country.",
        "source_type": "news",
        "title": "Tonga Reiterates Ban on Crypto Services",
        "url": "https://www.kucoin.com/news/tonga-reiterates-ban-on-crypto-services-citing-financial-and-security-risks"
      },
      {
        "date": "2022-09-27",
        "key_quote": "Tonga currently does not have a formal licensing regime specifically for Virtual Asset Service Providers (VASPs)... entities offering exchange... must register... though none have been issued.",
        "source_type": "analysis",
        "title": "Stablecoin \u0026 Digital Asset Regulations in Tonga",
        "url": "https://stablecoin.so/regulation/tonga"
      }
    ],
    "status": "Gray-Zone"
  }
}