Stablecoin issuer / redeemer in Gabon

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).

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).

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).

For Securities (under COSUMAF): If classified as a security, there wouldn't be "reserve requirements" in the same sense as e-money. Instead, the issuer would be subject to capital adequacy requirements, disclosure obligations, and investor protection rules typical for securities offerings.

For Securities (under COSUMAF): If classified as a security, there wouldn't be "reserve requirements" in the same sense as e-money. Instead, the issuer would be subject to capital adequacy requirements, disclosure obligations, and investor protection rules typical for securities offerings.

General Prohibition: Issuing any digital asset that functions as a medium of exchange or investment without proper authorization from BEAC or COSUMAF is likely to be considered illegal and subject to penalties.

Unregulated/Prohibited (Other Crypto-Assets):

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.

Likely Treatment: Given the BEAC's conservative stance and focus on financial stability, algorithmic stablecoins, which lack direct fiat or asset backing and rely on complex algorithms and market mechanisms to maintain their peg, would be viewed with extreme skepticism. They would almost certainly not qualify as e-money under BEAC regulations due to their inherent volatility and lack of full, tangible reserves. They would likely be considered highly speculative assets, and their issuance would probably be categorized as an unauthorized financial activity, potentially subject to prohibition.

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:

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.

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.

Identification and Verification:

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.

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.

Keep customer identification data up-to-date.

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

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