Centralized exchange in Gambia

No Specific VASP Licensing Regime: Unlike jurisdictions with mature crypto regulations (e.g., Malta, Singapore, Dubai), Gambia has not enacted dedicated laws requiring specific licenses for entities operating purely as cryptocurrency exchanges, custody providers, or payment processors for virtual assets.

Cautious Stance from Regulators: The Central Bank of The Gambia has historically adopted a cautious approach to cryptocurrencies, often issuing warnings about the risks associated with them (volatility, illicit finance, lack of consumer protection). Their focus is on maintaining financial stability and protecting consumers.

General AML/CFT Framework: While there are no crypto-specific AML/CFT laws, the FIU-GAM enforces the general Anti-Money Laundering and Combating the Financing of Terrorism Act. Any entity involved in financial services, even if not specifically licensed for crypto, would implicitly be expected to comply with general AML/CFT obligations if their activities fall within the scope of "financial institutions" or "designated non-financial businesses and professions" (DNFBPs) as defined in the Act. This includes conducting KYC, monitoring transactions, and reporting suspicious activities.

Money Remittance/Transfer Service Providers: If a crypto exchange allows users to deposit fiat currency from a bank account and withdraw fiat to a bank account, it could be seen as performing activities similar to a money transfer service, which would require a license from the Central Bank of The Gambia.

Local Presence: If an entity is registered as a business in Gambia, it would typically require a local registered office and potentially local directors or management, depending on the type of legal entity.

AML/KYC Requirements: This is the most critical area. Even without specific crypto regulations, entities involved in financial flows are expected to adhere to the provisions of the Anti-Money Laundering and Combating the Financing of Terrorism Act. This would include:

Currently, neither a specific registration nor a specific licensing regime exists for pure VASPs in Gambia.

The likely path forward, once regulations are developed, would be a licensing regime given the nature of financial services and the need for robust oversight, especially in line with Financial Action Task Force (FATF) recommendations for VASPs.

Capital Requirements: There are no specific capital requirements for crypto activities. However, if an entity needs a traditional financial license (e.g., money remitter), then the CBG's prescribed capital requirements for that specific license would apply.

No specific custodial license requirements exist for cryptocurrency or digital asset custodians in The Gambia. Since there is no dedicated legal framework for crypto assets, there's no licensing regime for service providers, including custodians.

No specific rules or mandates regarding the segregation of client digital assets from the custodian's own assets. This is due to the lack of a specific regulatory framework for digital asset custody.

The CBG has not issued licenses for virtual asset service providers (VASPs) or digital asset custodians.

No specific insurance or bonding requirements for digital asset custodians. Without a regulatory framework or licensing, there are no mandates for capital adequacy, insurance coverage, or bonding to protect client assets.

No legal definition of a "qualified custodian" for digital assets exists in Gambian law. The concept of a qualified custodian, as understood in jurisdictions like the U.S. (e.g., under the Advisers Act), does not apply in The Gambia for digital assets due to the absence of relevant legislation.

Legal Basis: The primary legislation is the Anti-Money Laundering and Combating the Financing of Terrorism Act, 2012. This Act establishes the legal framework for combating money laundering and terrorist financing, including the implementation of UN Security Council resolutions related to freezing assets of designated individuals and entities.

Obligation to Freeze Assets: Any person or entity (including financial institutions) holding funds or other assets of individuals or entities designated by the UN Security Council must immediately freeze those assets and report the action to the National Centre for Financial Intelligence (NCFI).

Prohibition on Transactions: It is prohibited to make funds or other assets available, directly or indirectly, to UN-designated individuals or entities.

Direct Obligation: All entities, including VASPs, under Gambian jurisdiction are legally required to comply with UN sanctions lists. This means screening users and transactions against the UN Security Council Consolidated List.

FATF Recommendation 15 (New Technologies) and its Interpretive Note specifically extend AML/CFT obligations, including sanctions screening, to VASPs. This means VASPs should conduct risk-based CDD, monitor transactions, and screen against relevant sanctions lists.

Mandatory: Screening against the UN Security Council Consolidated List is a legal obligation under Gambian AML/CFT law.

Highly Recommended (Best Practice & Risk Mitigation): Screening against the OFAC SDN List, the EU Consolidated List, and other major national sanctions lists (e.g., UK Sanctions List) is crucial for managing international risk, ensuring global interoperability, and avoiding potential secondary sanctions or de-risking by international partners.

De Facto Prohibition: The CBG's warnings essentially create a de facto prohibition for regulated financial institutions from dealing in or facilitating cryptocurrency transactions.

Lack of Legal Tender Status: Cryptocurrencies are not recognized as legal tender in The Gambia.

Absence of Licensing Framework: There is no legal or regulatory framework for licensing cryptocurrency exchanges or service providers.

Risk-Aversion: The Central Bank prioritizes financial stability and consumer protection by discouraging participation in the unregulated crypto market.

Lack of Dedicated Legislation: There isn't specific legislation in place to regulate or license Virtual Asset Service Providers (VASPs), which makes direct enforcement against them challenging.