On-shore VASP in Democratic Republic of the Congo

No Specific License: There are currently no specific licenses required for operating a cryptocurrency exchange or providing crypto custody services in the DRC. These activities fall into an unregulated grey area.

General Business Registration: Any entity operating in the DRC, regardless of its specific activity, would need to comply with general business registration requirements (e.g., registering with the Ministry of Commerce, obtaining a tax ID, etc.), but these are not specific to financial services or virtual assets.

Potential for General Payment Services Regulation: If a payment processor facilitates transactions between fiat currency and cryptocurrencies, or processes payments in fiat currency as part of its operations, it could potentially fall under the existing Law No. 20/017 of 25 November 2020 on the regulation of payment services in the Democratic Republic of Congo. This law regulates electronic money institutions and other payment service providers. However, it does not explicitly mention virtual assets.

Implication: A crypto payment processor that converts fiat to crypto or vice-versa, or handles fiat payments in general, might be interpreted by the BCC as falling under the scope of existing payment services regulation, requiring an authorization from the BCC. This would be decided on a case-by-case basis and is subject to interpretation given the lack of specific definitions for virtual assets within this law.

Licensing for Traditional Payment Services: For traditional payment services (including e-money issuance or fiat payment processing), a licensing regime administered by the BCC exists under Law No. 20/017.

AML/KYC (Anti-Money Laundering / Know Your Customer): While there are no crypto-specific AML/KYC regulations, the DRC has a general framework for combating money laundering and terrorist financing, primarily through Law No. 04/016 of 19 July 2004 relating to the fight against money laundering and the financing of terrorism (as amended).

The Cellule Nationale de Renseignements Financiers (CENAREF) (National Financial Intelligence Unit) is responsible for receiving and analyzing suspicious transaction reports.

Even in the absence of specific crypto regulations, any legitimate financial operation (or one seeking future legitimacy) should adhere to international AML/CFT best practices (e.g., FATF recommendations), including robust KYC procedures, transaction monitoring, and suspicious activity reporting. Failure to do so could lead to future legal issues or blacklisting.

Local Presence: General business laws would require any company operating in the DRC to have a registered local presence (e.g., a local office, local directors, registration with the relevant commercial registries).

No Crypto-Specific Application Process: There is no established application process for crypto-specific licenses, as these do not exist.

Payment Services License (if applicable): If an entity's operations are deemed to fall under the scope of Law No. 20/017, the application process would involve submitting a comprehensive dossier to the Banque Centrale du Congo, demonstrating compliance with capital, governance, risk management, and operational requirements.

Banque Centrale du Congo (BCC):

None specific to cryptocurrency custody. As cryptocurrencies are not recognized as legal tender and there is no specific framework for digital assets, there are no dedicated licenses for cryptocurrency custodians. Entities dealing with traditional financial assets are licensed under existing financial sector laws, but these licenses do not automatically extend to crypto activities. Any entity wishing to offer financial services that involve crypto would likely face significant regulatory hurdles or outright denial, given the BCC's stance.

Reference: The general position of the BCC can be found in various communiques and statements. For instance, the Communiqué of the Banque Centrale du Congo (BCC) dated December 14, 2021, warned the public against the use of cryptocurrencies, highlighting their lack of legal framework and associated risks. While a direct, stable URL to the specific communiqué can be elusive on the BCC's dynamic site, its content is widely reported and reflects the official position.

While there are regulations specific to crypto assets in the DRC, such as a 15-15% crypto tax, there are no mandated insurance or bonding requirements for cryptocurrency custodians under the current framework.

Segregation of Client Assets Rules:

Cold Storage Mandates:

Regulator Name: Banque Centrale du Congo (BCC)

Date: The most significant public warning was issued in June 2021, and the stance has been reiterated since.

The DRC tax code doesn't have a standalone "capital gains tax" in the same way some other countries do. Instead, gains are generally treated as part of a taxpayer's ordinary income or corporate profits.

For businesses (companies) engaging in such activities (again, hypothetically and illegally under current rules), any gains would be included in their taxable profits and subject to the Impôt sur les Bénéfices et Profits (IBP) (Corporate Income Tax), which is generally around 30%.

Specific reporting requirements for crypto holdings or transactions.