On-shore VASP in Bolivia

Prohibition of Cryptocurrencies:

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.

Reinforcement of the Stance:

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.

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.

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

Not Adopted. The FATF Travel Rule (Recommendation 16, interpreted for virtual assets under Recommendation 15) has not been adopted or implemented in Bolivia.

GAFILAT Mutual Evaluation Reports for Bolivia:

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evolved—banks are now permitted to operate with crypto—so the premise that cryptocurrencies are absolutely banned is outdated.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.

As of 2025, Bolivia has lifted its absolute ban on cryptocurrencies, allowing banks to process stablecoin transactions and making ownership legal. However, the National Tax Service (SIN) has not issued specific IVA guidance for crypto transactions, and cryptocurrencies are still not recognized as legal tender or goods/services for VAT purposes, leaving the tax framework unclear.

No specific requirements. As the use and trading of cryptocurrencies are prohibited, there are no official reporting requirements for individuals or businesses related to their holdings or transactions. Any individual or business found engaging in such activities would be in violation of the BCB regulations, rather than facing specific tax reporting obligations for these assets.

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.