Stablecoin issuer / redeemer 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.

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

Reinforcement of the Stance:

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evolved—banks are now permitted to operate with crypto—so the premise that cryptocurrencies are absolutely banned is outdated.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

No specific provisions. Income generated from illegal activities might theoretically still be subject to general income tax principles in some jurisdictions, but in Bolivia, the lack of legal recognition of crypto makes applying existing income tax laws (e.g., Impuesto sobre las Utilidades de las Empresas - IUE for businesses, Régimen Complementario al Impuesto al Valor Agregado - RC-IVA for individuals on certain income types) to crypto-related earnings highly problematic and undefined. It is not something the tax authority provides guidance on for banned assets.