Bolivia

Bolivia has shifted from a complete ban on cryptocurrencies to a regime of controlled regulation, so the regulator no longer issues advisories reiterating a ban but instead implements new regulatory frameworks.

**Investigations and arrests related to fraud or pyramid schemes that *utilize* cryptocurrencies:** These are often led by the police and public prosecutor's office, with the primary violation being fraud or illicit financial schemes, rather than simply possessing or trading crypto.

**Regulator/Agency Involved:** Policía Boliviana (Bolivian Police), Ministerio Público (Public Prosecutor's Office), ASFI (Autoridad de Supervisión del Sistema Financiero) often issues warnings preceding or accompanying these actions.

**Entities Targeted:** Individuals and groups operating fraudulent pyramid schemes, often referred to as "financieras digitales" (digital financial companies) or "inversiones digitales." Specific names that have appeared in the news include "G7 Inversiones," "Omega Pro," "Mind Capital," "Financiera Digital," among others.

**Violation Type:** Primarily **fraud, pyramid scheme (estafa con promesa de rendimientos extraordinarios), illicit financial intermediation**, and sometimes money laundering. Cryptocurrencies are often a tool used in these schemes to obscure transactions or give an appearance of legitimacy/innovation.

**Penalty Amount:** Not applicable as a direct "penalty for crypto violation." Penalties are sought under existing criminal laws for fraud, which can include imprisonment and restitution to victims. Specific fines for the *crypto aspect* are not typically levied.

**Date:** Various actions occurred throughout 2022 and 2023.

For instance, "G7 Inversiones" was prominent in mid-2022.

"Omega Pro" and similar schemes saw crackdowns in late 2022 and early 2023.

**Outcome:** Arrests of perpetrators, freezing of assets (where possible), public warnings against these types of investments, and ongoing legal proceedings for fraud. The use of cryptocurrencies in these schemes often complicates asset recovery due to their decentralized nature.

**News report on G7 Inversiones (2022):**

*El Deber:* Gobierno advierte sobre estafas con criptomonedas y "G7 Inversiones" es el foco

**News report on financial scams involving crypto (2023):**

*La Razón:* ASFI y el Gobierno advierten de estafas por inversiones con criptomonedas; la Policía ya investiga denuncias

**ASFI Public Warning (General on risks of crypto and pyramid schemes):**

*ASFI Nota de Prensa N° 004/2023:* ASFI reitera que el uso de criptoactivos no está autorizado en Bolivia y advierte sobre estafas piramidales

URL: https://www.asfi.gob.bo/index.php/sala-de-prensa/notas-de-prensa/2497-asfi-reitera-que-el-uso-de-criptoactivos-no-esta-autorizado-en-bolivia-y-advierte-sobre-estafas-piramidales.html (Spanish - issued Feb 2023, relevant to the period)

**Regulatory Reference:** **Resolución del Directorio del BCB No. 044/2014** (Resolution of the BCB Board No. 044/2014), issued on May 6, 2014.

**Key Provision:** This resolution explicitly prohibits the use and commercialization of any currency or coin that is not issued and controlled by the national monetary authority within the national financial system. This effectively bans cryptocurrencies like Bitcoin, Ethereum, and others from being used as means of payment or stored value within the formal financial system.

**Reasoning:** The BCB cited concerns about the lack of regulation, security, and stability, as well as the potential for illicit activities like money laundering and fraud.

As of April 2026, Bolivia’s financial institutions are free to buy and sell dollars at freely chosen prices, superseding any older archived BCB resolution on fixed rates.

Leyes.org.bo - Resolución del Directorio del Banco Central de Bolivia Nº 044/2014

Since 2014, the BCB and the **Autoridad de Supervisión del Sistema Financiero (ASFI)** (Authority for the Supervision of the Financial System) have periodically reiterated this prohibition and issued warnings against the use of cryptocurrencies.

**ASFI's Role:** ASFI supervises financial institutions in Bolivia. Consistent with the BCB's resolution, ASFI does not authorize or regulate any entity dealing with cryptocurrencies.

**Required Licenses for Exchanges, Custody Providers, and Payment Processors:** **None exist.** Since the underlying activities of operating a cryptocurrency exchange, providing custody for non-sanctioned virtual assets, or processing payments with them are prohibited within the formal financial system, there is no legal framework for their licensing.

**Registration vs. Licensing Regime:** **Neither applies.** The regime is one of prohibition, not regulation, for private crypto assets.

**Key Requirements (Capital, AML/KYC, Local Presence):** These are **not applicable** for cryptocurrency businesses, as such businesses are not formally recognized or permitted. Any entity attempting to operate these services would be doing so outside the regulated financial system and potentially in violation of the BCB's resolution.

**AML/KYC:** While not required for crypto businesses due to the ban, all *licensed* financial institutions in Bolivia are subject to strict AML/KYC regulations under the ASFI framework and laws like Ley N° 004 de Lucha contra la Corrupción, Enriquecimiento Ilícito e Investigación de Fortunas "Marcelo Quiroga Santa Cruz" (Anti-Corruption Law).

Bolivia now has an application process for banks and authorized entities to offer cryptocurrency exchange, custody, and payment services, as evidenced by Banco Bisa’s licensed USDT custody product and the Ministry of Economy’s November 2025 authorization for all banks to offer crypto services.

**Current State:** Bolivia maintains a strict prohibition on cryptocurrencies that are not issued or regulated by its central bank, primarily for financial stability and consumer protection reasons.

**Operating in Bolivia:** Any individual or entity engaging in the business of cryptocurrency exchanges, custody, or payment processing in Bolivia does so outside the regulated financial system and potentially faces legal risks.

**Future Outlook:** While Bolivia's stance has been consistent, the global landscape of cryptocurrency regulation is rapidly evolving. It's always advisable for interested parties to monitor updates from the Banco Central de Bolivia and ASFI for any potential changes in policy, though no immediate shift is anticipated.

**Resolución de Directorio N° 001/2014 del Banco Central de Bolivia (BCB)**

**Content:** This resolution explicitly prohibits the use of "any type of currency that is not issued and regulated by the state." It specifically warns the public that virtual currencies, such as Bitcoin and others, are not legal tender in Bolivia and are not backed by the state. It also prohibits financial institutions regulated by ASFI from using, operating with, or commercializing these virtual currencies.

**URL:** While a direct, permanent link to the exact resolution PDF on the BCB site can sometimes be challenging due to site architecture changes over time, its existence and content are widely referenced by the BCB itself and ASFI.

ASFI often issues warnings reiterating the BCB's stance: https://www.asfi.gob.bo/

A press release from the BCB from January 2014 clearly states this: https://www.bcb.gob.bo/?q=node/1330 (This press release explicitly mentions the "Resolución de Directorio N° 001/2014" and its content regarding the prohibition).

Stablecoins are **not officially classified** as e-money, payment tokens, or securities within the Bolivian regulatory framework because they fall under the general prohibition of unauthorized virtual currencies. From the official perspective, they are unauthorized digital assets.

**Not applicable.** Since stablecoins (and all cryptocurrencies) are prohibited from being used or commercialized by regulated entities and are not recognized as legal tender, there are no prescribed reserve requirements for them.

**Not applicable.** Issuing stablecoins for use within Bolivia's financial system by regulated entities would be in violation of the BCB's resolution. There is no licensing regime for stablecoin issuers because the activity itself is not permitted.

**No legal recognition or protection.** As stablecoins are not recognized as legal tender or regulated financial instruments, any redemption rights associated with them would not be legally enforceable under Bolivian financial law. Users engage with them at their own sole risk, outside the official financial system.

**Not applicable.** The prohibition is broad and applies to all types of virtual currencies, regardless of their backing mechanism (fiat-backed, crypto-backed, or algorithmic). There are no specific rules for algorithmic stablecoins because they are implicitly covered by the general ban.

Bolivia has **not announced any concrete plans** or initiatives for developing a Central Bank Digital Currency (CBDC). Given the BCB's very conservative stance on private digital currencies, any potential future CBDC would likely be the only officially recognized digital form of the Bolivian Boliviano, further reinforcing the prohibition on private stablecoins.

**ASFI Circular 471/2014 (October 2014):** The Bolivian Financial System Supervision Authority (ASFI) issued this circular, explicitly prohibiting financial institutions under its supervision from using, transacting, holding, or intermediating cryptocurrencies (referred to as "any type of currency that is not issued and regulated by a state"). This effectively bars banks, payment processors, and other regulated financial entities from engaging with crypto.

Bolivia has shifted from a complete ban on cryptocurrencies to implementing controlled regulation, allowing for the possibility of legally operating Virtual Asset Service Providers within a regulated framework, contrary to the implication that no such providers exist legally.

Bolivia has moved from a total cryptocurrency ban to a regulated framework where crypto is legal for commercial activities, though financial institutions operate under controlled regulation.

**Applicability:** OFAC sanctions apply to:

U.S. persons globally (citizens, permanent residents, entities incorporated in the U.S. or subject to U.S. jurisdiction).

All bank transfers in U.S. dollars within and from Bolivia are subject to a 0.03% Financial Transaction Tax (ITF), but are not prohibited or banned.

Non-U.S. persons engaged in certain activities that facilitate violations by U.S. persons or designated entities, or that contravene specific OFAC programs (e.g., dealing with Specially Designated Nationals (SDNs)).

**Sanctioned Entity Screening:** VASPs must screen all customers (KYC/CDD) and transactions against OFAC's Specially Designated Nationals and Blocked Persons (SDN) List, Sectoral Sanctions Identifications (SSI) List, and other relevant sanctions lists. This includes beneficial ownership screening.

**Geographic Restrictions:** Prohibitions on transactions involving comprehensively sanctioned jurisdictions (e.g., Cuba, Iran, North Korea, Syria, certain regions of Ukraine/Russia) apply regardless of the specific asset type.

**Virtual Currency Guidance:** OFAC has issued specific guidance on sanctions compliance for the virtual currency industry, clarifying that sanctions obligations apply equally to transactions involving virtual currencies as they do to traditional fiat currency transactions.

**OFAC's A-Z Sanctions List (by program):** https://home.treasury.gov/policy-issues/office-of-foreign-assets-control-ofac-sanctions-programs-and-country-information

**OFAC Sanctions Compliance Guidance for the Virtual Currency Industry (2021/2022):** https://home.treasury.gov/system/files/126/virtual_currency_guidance_brochure.pdf

**Applicability:** EU sanctions apply to:

All EU nationals and entities incorporated or constituted under the law of an EU Member State.

Any business conducted in whole or in part within the territory of the EU.

In some cases, specific asset freezes can apply to assets owned or controlled by designated persons located anywhere.

**Geographic Restrictions:** Similar to OFAC, prohibitions apply to transactions involving jurisdictions under comprehensive EU sanctions (e.g., Russia/Ukraine, Syria, Iran, North Korea, Belarus).

**AML/CFT Directives:** EU AML Directives (e.g., 5AMLD, 6AMLD) include VASPs in the scope of obliged entities, requiring them to implement robust KYC, CDD, and transaction monitoring, which includes sanctions screening.

**EU Sanctions Map:** https://www.sanctionsmap.eu/ (Provides an interactive overview of current EU sanctions regimes)

**Consolidated Financial Sanctions List (maintained by the European Commission):** https://data.europa.eu/euodp/en/data/dataset/consolidated-list-of-persons-groups-and-entities-subject-to-eu-financial-sanctions

**EU Anti-Money Laundering Directives:** (Search for "EU AMLD" on EUR-Lex, e.g., Directive (EU) 2018/843 for 5AMLD)

**Applicability:** UN Security Council Resolutions are binding on all UN Member States, including Bolivia. Member States are required to implement these sanctions into their national law.

**UN Security Council Consolidated List:** https://www.un.org/securitycouncil/sanctions/un-sc-consolidated-list

**UN Security Council Sanctions Committees:** https://www.un.org/securitycouncil/sanctions/committees

**Key Lists to Screen Against:**

UN Security Council Consolidated List

EU Consolidated List (and individual Member State lists, if relevant)

Any other national sanctions lists relevant to the VASP's operating jurisdiction or the jurisdiction of its customers/transactions.

**Know Your Customer (KYC):** Collecting and verifying identity information for all users.

**Customer Due Diligence (CDD) and Enhanced Due Diligence (EDD):** Assessing risk profiles and conducting deeper checks for higher-risk customers.

**Ongoing Monitoring:** Continuously monitoring transactions for suspicious activity and regularly re-screening customer bases against updated sanctions lists.

**Blockchain Analytics:** Utilizing tools to trace funds on public blockchains to identify potential links to sanctioned addresses or entities.

**Travel Rule Compliance:** For VASPs in jurisdictions implementing the FATF Travel Rule, collecting and transmitting originator and beneficiary information for transfers above a certain threshold.

**OFAC:** Prohibits virtually all transactions involving Cuba, Iran, North Korea, Syria, and certain regions of Ukraine (Crimea, DPR, LPR, Zaporizhzhia, Kherson).

**EU:** Imposes broad restrictions on trade and financial transactions with countries like Russia (severe restrictions due to Ukraine war), Syria, Iran, North Korea, and others.

**UN:** Enforces arms embargoes, asset freezes, and travel bans on specific individuals and entities associated with countries like North Korea, Iran, Libya, Yemen, and groups like Al-Qaeda and ISIL.

**Bolivian Domestic Penalties:** If a VASP or financial institution operates in Bolivia in violation of ASFI Circular 471/2014, it could face severe administrative fines, sanctions, and potential criminal charges under Bolivian financial laws, including the possibility of closure and imprisonment for those responsible. Operating an unregulated financial service can also lead to charges related to illegal financial activities.

**OFAC Penalties:** Penalties for violating U.S. sanctions can be substantial, including:

**Civil Penalties:** Up to hundreds of thousands or millions of dollars per violation.

**Criminal Penalties:** Fines of millions of dollars and imprisonment for individuals (up to 20-30 years).

**EU Penalties:** Penalties for violating EU sanctions are determined by individual Member States but are generally severe, including:

Financial penalties in Bolivia apply only to crypto trading conducted outside licensed banks, not as blanket significant fines on all crypto activity following the 2024 ban lift.

**Imprisonment:** For serious violations, individuals can face prison sentences.

**Reputational Damage:** Beyond legal penalties, violations lead to severe reputational damage, loss of correspondent banking relationships, and exclusion from the global financial system.

**Bolivia does NOT maintain its own country-specific sanctions lists targeting cryptocurrency activity.**

Its primary obligations regarding sanctions lists derive from its membership in the United Nations. Therefore, Bolivia is obligated to implement the **UN Security Council Consolidated List** through its domestic legal framework (e.g., executive decrees, AML/CFT laws).

**GAFILAT Membership:** Bolivia is a member of the Financial Action Task Force of Latin America (GAFILAT), a FATF-style regional body. This means it is committed to implementing the FATF Recommendations on AML/CFT, which now explicitly cover Virtual Assets and VASPs (Recommendation 15). While GAFILAT/FATF are standard-setters, not sanctioning bodies, their recommendations guide national legislation, including the implementation of UN sanctions. Bolivia's AML/CFT framework is expected to cover UN-designated entities.

Bolivia is a member of GAFISUD (now known as GAFILAT), and the EU has added Bolivia to its AML/CFT high-risk third country list via Delegated Regulation (EU) 2026/83 as of December 2025; the GAFILAT website remains a relevant regional reference but the specific regulatory status has been superseded by the EU listing.