Angola -- Stablecoin Regulations Regulatory Overview

The regulatory framework for stablecoins in Angola is undeveloped and largely non-existent, with the central bank (Banco Nacional de Angola - BNA) maintaining a highly cautious, if not prohibitive, stance towards cryptocurrencies in general. There is no specific legislation addressing stablecoins directly.

Instead, the BNA has issued warnings and prohibitions regarding activities involving decentralized cryptocurrencies, which by extension, would likely apply to stablecoins given their current unregulated status.

Here's a breakdown based on the current understanding of Angolan financial regulation:

Overall Regulatory Stance

The Banco Nacional de Angola (BNA) has consistently warned the public about the risks associated with cryptocurrencies, citing their speculative nature, lack of regulatory oversight, and potential for money laundering and terrorist financing. The BNA does not recognize cryptocurrencies as legal tender or as regulated financial instruments.

In essence, engaging in stablecoin-related activities within Angola without explicit BNA authorization would likely be considered operating outside the regulated financial system, and potentially in violation of existing financial services laws if such activities are interpreted as providing payment services or issuing financial instruments without a license.

Classification of Stablecoins

• No specific classification: Stablecoins are not specifically classified as e-money, payment tokens, or securities under Angolan law because there is no dedicated stablecoin regulation.
• Likely unofficial view: If stablecoins were to be considered, the BNA's initial stance would likely categorize them as high-risk, unregulated digital assets that fall outside the scope of traditional financial instruments.
• Potential future interpretation: If Angola were to regulate them, stablecoins could potentially be classified:
  • As e-money/payment tokens: If they are designed primarily for payments and peg to a fiat currency. This would bring them under the existing framework for electronic money.
  • As securities: If they confer rights similar to shares or bonds, or if their value is derived from underlying assets in a way that suggests an investment contract. This is less likely for typical fiat-backed stablecoins.

Specific Legislation and Regulatory References

Since there's no specific stablecoin law, the relevant (and largely prohibitive) references are from the BNA concerning cryptocurrencies and general financial activities:

1. Aviso n.º 03/2018 do Banco Nacional de Angola (Notice No. 03/2018 of the National Bank of Angola) - 27 March 2018:

   • Content: This is the most direct and significant regulatory act concerning cryptocurrencies. It explicitly prohibits credit institutions, payment institutions, and micro-finance institutions from engaging in any activity related to cryptocurrencies, including purchasing, holding, selling, or offering services involving them.
   • Implication for Stablecoins: While stablecoins are not explicitly named, the broad prohibition against "cryptocurrencies" (moedas virtuais) is generally understood to include stablecoins. This effectively shuts out traditional financial institutions from interacting with stablecoins.
   • URL: While direct links to historical Avisos on BNA's site can change, they are usually found in the "Legislação" (Legislation) section.
     • BNA Legislation page (check for 2018 publications): https://www.bna.ao/ao/Bna/Documentos/Legislação.aspx
     • Look for documents published in March 2018.

2. Instruction n.º 01/2018 (Instrução n.º 01/2018) - 16 February 2018:

   • Content: This instruction regulates certain aspects of electronic payment instruments and services. While it could theoretically provide a framework for regulated digital payment tokens, it predates widespread stablecoin discussion and does not mention them. It primarily focuses on traditional e-money services provided by authorized institutions.
   • URL: Also found on the BNA Legislation page, under 2018 publications.

3. Lei n.º 05/2018, de 10 de Maio – Lei dos Serviços de Pagamento (Law No. 05/2018, of May 10 – Payment Services Law):

   • Content: This law regulates payment services, payment institutions, and electronic money institutions. If stablecoins were to be recognized and regulated as e-money, they would fall under this law. However, as per Aviso 03/2018, payment institutions are prohibited from dealing with cryptocurrencies.
   • Implication for Stablecoins: This law defines what constitutes regulated payment services and e-money, setting the bar for future regulation. Currently, stablecoin issuers would not qualify under this law as their activity is implicitly prohibited for regulated entities.
   • URL: Parliament of Angola (Assembleia Nacional) website or BNA Legislation.

4. Lei n.º 03/14, de 10 de Fevereiro – Lei Anti-Branqueamento de Capitais e Combate ao Financiamento do Terrorismo (Law No. 03/14, of February 10 – Anti-Money Laundering and Combating the Financing of Terrorism Law):

   • Content: This general AML/CFT law applies to all financial activities. While not specific to stablecoins, any illicit use of stablecoins would fall under its purview. The BNA often cites AML/CFT risks as a primary reason for its cautious stance.
   • URL: Parliament of Angola (Assembleia Nacional) website or official gazettes.

Reserve Requirements

• No specific requirements for stablecoins: As stablecoins are not regulated or recognized, there are no specific reserve requirements for them in Angola.
• Hypothetical for E-Money: If a stablecoin were ever to be classified and licensed as e-money, the issuer would be subject to the BNA's regulations for Electronic Money Institutions (EMIs), which typically require safeguarding customer funds (e.g., holding them in segregated accounts with credit institutions) and capital requirements.

Issuer Licensing

• No licensing for stablecoin issuers: There is no specific licensing framework for stablecoin issuers in Angola. Given the BNA's current stance (Aviso 03/2018), it is highly unlikely that a license would be granted for issuing stablecoins or providing related services.
• Hypothetical for E-Money: If a stablecoin was classified as e-money, the issuer would need to be licensed by the BNA as an Electronic Money Institution (EMI) under the Payment Services Law (Lei n.º 05/2018).

Redemption Rights

• No specific rules for stablecoins: There are no specific legal provisions regarding redemption rights for stablecoin holders in Angola due to the lack of regulation. Any redemption would depend solely on the terms and conditions set by the private issuer, without regulatory backing.
• Hypothetical for E-Money: For regulated e-money, the Payment Services Law and BNA regulations typically guarantee the right of the e-money holder to redeem their e-money at par value at any time.

Algorithmic Stablecoin Rules

• None: There are no specific rules or regulations in Angola pertaining to algorithmic stablecoins. Given the complete absence of any framework for stablecoins, rules for a specific type like algorithmic stablecoins are far off.

CBDC Interaction

• Angola's CBDC exploration: The Banco Nacional de Angola has indicated it is exploring the possibility of issuing a Central Bank Digital Currency (CBDC). In 2021, the BNA Governor, José de Lima Massano, stated that the central bank was studying a CBDC.
• Interaction with Stablecoins: Currently, there is no direct interaction as stablecoins are not regulated. However, if Angola were to issue a CBDC, it would likely reinforce the BNA's preference for a centrally controlled digital currency over privately issued stablecoins. A BNA-issued CBDC would be legal tender and subject to direct central bank oversight, contrasting sharply with unregulated stablecoins. The BNA's CBDC efforts might even further solidify its cautious stance on private digital currencies.

Conclusion:

Angola's regulatory environment for stablecoins is characterized by a lack of specific legislation and a prohibitive stance from the central bank. While there are existing laws for e-money and payment services, the BNA's Aviso n.º 03/2018 effectively prevents regulated financial institutions from engaging with any form of cryptocurrency, implicitly including stablecoins. Therefore, stablecoins operate in a regulatory void, and any activities involving them carry significant legal and financial risks within the Angolan jurisdiction. The focus remains on general AML/CFT compliance and the potential future development of a BNA-issued CBDC.