Custodial wallet / SaaS in Bolivia

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.

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

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.

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.

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.

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.