Crypto-funded debit card in Gabon

Instruction n°001/GR/2021 relating to the ban on crypto-assets in the CEMAC zone.

Impact: This means that traditional banks and financial institutions in Gabon (and other CEMAC countries) are generally prohibited from offering crypto custody services.

No specific custodial license for digital assets has been established in Gabon.

Due to the BEAC's prohibitive stance, financial institutions cannot obtain such a license. For non-financial entities, there's no defined licensing regime for crypto custody. Operating a crypto custody service would likely be in an unregulated space, which can expose the entity to future enforcement actions or an inability to access traditional banking services.

The absence of specific regulations, leading to a legal grey area.

The potential for future regulatory changes, which could include outright bans, strict licensing, or a more facilitative framework.

Likely Classification: Fiat-pegged stablecoins (e.g., pegged to XAF, USD, EUR) that are intended for payments and electronic transfers, and redeemable at par, would most likely be treated as electronic money under the BEAC's regulatory framework.

Relevant Legislation: Règlement n° 02/18/CEMAC/UMAC/CM fixant les conditions d’exercice de l’activité d’émission de monnaie électronique et d’autres moyens de paiement dans la CEMAC (Regulation No. 02/18/CEMAC/UMAC/CM establishing the conditions for the exercise of electronic money issuance and other payment means activities within CEMAC). This regulation primarily governs payment institutions and e-money issuers.

For E-money (under BEAC Reg. 02/18): If a stablecoin is classified as e-money, its issuer would be subject to strict reserve requirements. E-money issuers are typically required to hold funds equivalent to the e-money issued, often in segregated accounts with licensed commercial banks, ensuring full backing and redemption at par. The specific details would be outlined in the BEAC regulation. These funds must be held in the currency of the stablecoin (e.g., XAF for a XAF-pegged stablecoin).

Cryptocurrencies, in general, are not officially recognized as legal tender or regulated financial products in Gabon/CEMAC unless they fall under the e-money or securities frameworks. The BEAC has repeatedly issued warnings against the use of cryptocurrencies, often viewing them as speculative and risky, and their issuance as unauthorized financial activity unless specifically licensed.

BEAC's CBDC Exploration: The BEAC has publicly expressed its interest and is actively exploring the possibility of issuing a regional Central Bank Digital Currency (CBDC), often referred to as an "e-CFA." This initiative aims to modernize payment systems, improve financial inclusion, and maintain monetary sovereignty within the CEMAC zone.

Impact on Private Stablecoins: If the BEAC proceeds with its e-CFA, it is highly probable that the regulatory environment for private stablecoins would become significantly stricter. The introduction of an official digital currency would likely lead to:

CEMAC Regulation No. 01/16-CEMAC-UMAC-CM on the Prevention and Repression of Money Laundering and Terrorist Financing (2016): This is the cornerstone legislation for AML/CFT in the CEMAC zone, which Gabon has adopted. It sets out the general obligations for all financial institutions and designated non-financial businesses and professions (DNFBPs), including those that might offer virtual asset services, to prevent and combat money laundering and terrorist financing.

Individuals: Obtain and verify identity using reliable, independent source documents (e.g., national ID cards, passports, driver's licenses) for name, date of birth, place of birth, address, and nationality.

Legal Entities (Companies): Obtain and verify information such as the company's name, legal form, address of registered office, names of directors, and provisions governing the power to bind the company. Identify and verify the identity of the beneficial owners (individuals who ultimately own or control the company) and persons acting on behalf of the company.

Conduct ongoing due diligence on the business relationship and scrutiny of transactions undertaken throughout the course of that relationship to ensure that the transactions are consistent with the VASP's knowledge of the customer, their business, and risk profile.

Enhanced Due Diligence (EDD): Apply EDD in situations identified as higher risk, including:

For virtual assets, this could involve deeper scrutiny of the source of funds/wealth, understanding the origin and destination of virtual assets, and the underlying purpose of transactions.

Relationships with Politically Exposed Persons (PEPs).

Transactions involving high-risk jurisdictions.

Complex, unusually large transactions, or unusual patterns of transactions that have no apparent economic or visible lawful purpose.

Obligation to Report: Any VASP that suspects or has reasonable grounds to suspect that funds (fiat or virtual assets) are the proceeds of a criminal activity, or are related to terrorist financing, must report its suspicions.

Recipient: Reports must be made promptly to Gabon's Financial Intelligence Unit (FIU).

No Tipping-Off: VASPs and their employees are prohibited from disclosing to the customer or to third parties that an STR has been filed.

Duration: Records must typically be retained for at least five (5) years after the business relationship has ended or after the date of the occasional transaction.

Copies of documents used for identification and verification of customers and beneficial owners.

Account files and business correspondence.

Records of transactions, including the amount, currency (fiat and/or virtual asset type and quantity), date, and the identity of the parties involved.

Records of suspicious transaction reports filed.

Absence: As of now, Gabon has not enacted specific legislation dedicated solely to the taxation of cryptocurrencies or virtual assets. Its tax framework relies on the general tax code.

Individuals: Capital gains on the sale of movable assets (which would likely include cryptocurrencies for investment purposes) are generally subject to a specific tax rate. Historically, this rate has been around 15%. However, the exact rate can vary based on the specific type of asset and any recent amendments to the CGI.