Crypto-funded debit card in Bolivia

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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.

Reinforcement of the Stance:

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

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.

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. 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.

BCB Resolution N° 044/2014 (May 6, 2014): This resolution explicitly prohibits financial institutions regulated by the Authority for Financial System Supervision (ASFI) from using, commercializing, or trading cryptocurrencies (referred to as "any type of currency not issued and regulated by governments"). It also prohibits the use of such currencies in payment systems. While the resolution directly targets regulated entities, its broad wording and the BCB's monetary authority effectively ban the use of cryptocurrencies for any transaction within Bolivia.

BCB Communiqué (May 14, 2021): The BCB reiterated its 2014 prohibition, emphasizing that cryptocurrencies are not issued by monetary authorities, are not backed by any government, and lack legal tender status. It warned of the risks associated with their use, including potential fraud and lack of protection for users.

While Bolivia still has no specific capital gains tax provisions for cryptocurrencies because they were historically banned, the regulatory status has evolved—banks are now permitted to operate with crypto—so the premise that cryptocurrencies are absolutely banned is outdated. However, the lack of a traditional capital gains tax framework remains accurate.