Bolivia -- Enforcement Actions Regulatory Overview

Bolivia has a unique and highly restrictive stance on cryptocurrencies, having banned their use and trading since 2014 through Resolution N° 077/2014 issued by the Central Bank of Bolivia (BCB). This blanket prohibition means that there are fewer traditional "enforcement actions" against specific crypto entities for regulatory violations (like operating without a license), as the activity itself is illegal.

Instead, actions tend to fall into two main categories:

1. Warnings and reiterations of the ban: The financial regulator (ASFI) frequently issues advisories reminding the public of the ban and the risks associated with cryptocurrencies. These are policy statements rather than enforcement actions against specific entities.
2. 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.

Given this context, there have been no significant "cryptocurrency enforcement actions" in the last three years (mid-2021 to mid-2024) in Bolivia that fit the traditional mold of a regulator (like ASFI or BCB) targeting a specific crypto entity for a crypto-related violation, issuing a specific penalty amount, and with a distinct "outcome" related to crypto regulation.

The closest actions to "enforcement" involve the dismantling of fraudulent schemes where cryptocurrencies were used as a vehicle. Here are the most relevant examples, although they primarily concern fraud, not direct crypto regulation violations:

1. Dismantling of Fraudulent Investment Schemes (e.g., G7 Inversiones, Omega Pro, etc.)

Over the last few years, Bolivian authorities have actively pursued and dismantled various pyramid schemes and fraudulent investment platforms that often promised high returns by involving cryptocurrencies or presenting themselves as crypto investment opportunities. These are prosecuted under fraud and illicit financial activity laws, not for violating a specific crypto trading regulation.

• 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.

Sources (illustrative of the general context and police actions against these types of scams):

• News report on G7 Inversiones (2022):
  • El Deber: Gobierno advierte sobre estafas con criptomonedas y "G7 Inversiones" es el foco
    • URL: https://eldeber.com.bo/bolivia/gobierno-advierte-sobre-estafas-con-criptomonedas-y-g7-inversiones-es-el-foco_284155 (Spanish)
• 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
    • URL: https://www.la-razon.com/economia/2023/02/09/asfi-y-el-gobierno-advierten-de-estafas-por-inversiones-con-criptomonedas-la-policia-ya-investiga-denuncias/ (Spanish)
• 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)

Conclusion:

While Bolivia actively combats financial fraud that often involves cryptocurrencies, it is crucial to understand that these are prosecuted under existing criminal laws for fraud, not under specific "cryptocurrency enforcement actions" for violating crypto regulations. The primary "enforcement" related to cryptocurrencies in Bolivia remains the foundational 2014 ban, frequently reiterated by the Central Bank and ASFI, making any direct crypto activity inherently illegal rather than subject to specific regulatory fines for non-compliance within a legal framework. Therefore, the country has not seen significant, direct cryptocurrency regulatory enforcement actions in the last three years as might be found in jurisdictions where crypto is legal but regulated.