Remote VASP serving residents in Bolivia
Foreign-incorporated entity that offers exchange, custody, or transfer services to residents of a jurisdiction without establishing a local entity or office.
Remote VASP is not permitted in Bolivia.
Verdict Details
- Permitted
- no
- Local entity required
- No
- Licensing burden
- None
- Last updated
- 2026-07-13
Key Restrictions
- Resolución del Directorio del BCB No. 044/2014 (and subsequent BCB Resolution 042/2014) prohibits the use and commercialization of any currency not issued and controlled by the national monetary authority — effectively banning cryptocurrencies like Bitcoin, Ethereum, etc.
- ASFI has periodically reiterated that the use of cryptoassets is not authorized in Bolivia, including via Nota de Prensa N° 004/2023.
- No legal framework exists for licensing or registering foreign-incorporated remote VASPs to serve Bolivian residents.
Key Risks
- Enforcement actions target fraud/pyramid schemes involving crypto, but the underlying prohibition means any unlicensed remote VASP activity could be treated as unauthorized financial service operation.
- Enforcement risk: investigations and arrests by Policía Boliviana and Ministerio Público, primarily for fraud/illicit financial intermediation; cryptocurrency use complicates asset recovery.
- Bolivia is under increased FATF monitoring (June 2025) due to strategic deficiencies, which may drive future regulatory changes but currently means AML enforcement is uneven.
- Regulatory ambiguity: the 2014 ban remains the stated position on cryptocurrency use, even as some 2024-2026 developments suggest evolving policy — creating uncertainty for cross-border operators.
Evidence
This verdict synthesizes the following facts. Each fact links to its primary source(s).
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.
ASFI Nota de Prensa N° 004/2023: ASFI reitera que el uso de criptoactivos no está autorizado en Bolivia y advierte sobre estafas piramidales
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.
Not Adopted. The FATF Travel Rule (Recommendation 16, interpreted for virtual assets under Recommendation 15) has not been adopted or implemented in Bolivia.
Reason: Bolivia's central bank, the Banco Central de Bolivia (BCB), issued Resolution 042/2014 on May 6, 2014, which explicitly prohibits the use of "any type of currency not issued and regulated by the state, such as Bitcoin, for financial transactions and investments." This effectively bans the operation of virtual assets and, by extension, virtual asset service providers (VASPs) within Bolivia's formal financial system.
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.
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.
GAFILAT Mutual Evaluation Reports for Bolivia:
Verdict Attribution
- Source:
- AI-Generated · Unreviewed
- AI synthesized:
- 2026-07-13 (deepseek-chat)
- Last updated:
- 2026-07-13
- Confidence:
- medium
This verdict was produced by an AI model from the underlying facts. Confirm with counsel before relying on it for material decisions.
No — a foreign-incorporated remote VASP cannot lawfully serve Bolivian residents due to Bolivia's long-standing prohibition on the use and commercialization of cryptocurrencies not issued by the state (BCB Resolutions 044/2014 and 042/2014), and no licensing or registration pathway exists for such activity; enforcement risk centers on investigation as fraud or unauthorized financial intermediation.
Questions this verdict aims to answer
- May a non-resident provider serve residents from abroad?
- Does cross-border service trigger licensing, registration, or AML obligations?
- What enforcement risk exists for unlicensed remote operators?