Custodial wallet / SaaS in Gambia

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.

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

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 specific mandates or regulations requiring the use of cold storage for digital assets held by custodians. Security practices for digital assets are left to the discretion of the service providers, without regulatory oversight on this aspect.

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.

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.

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.

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:

Customer Due Diligence (CDD) / Know Your Customer (KYC) procedures.

Ongoing monitoring of transactions.

Suspicious Transaction Reporting (STR) to the FIU-GAM.

Maintaining proper records.

Having a designated Money Laundering Reporting Officer (MLRO).

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.

General Business Registration: Any entity operating in Gambia, regardless of its specific financial activities, must comply with general business registration requirements (e.g., registering with the Registrar General's Office).

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.

Overlap with Traditional Financial Services: If an entity's operations involve the conversion of virtual assets to fiat currency or vice-versa, or if they facilitate traditional money transfers alongside crypto services, they might fall under existing regulations for traditional financial service providers. For example:

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.

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.

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

Prohibition on transactions with sanctioned jurisdictions/regions: VASPs operating in Gambia must prevent transactions (either directly or indirectly) with individuals, entities, or regions subject to comprehensive sanctions by the UN, OFAC (e.g., Cuba, Iran, North Korea, Syria, Venezuela), or the EU. This includes identifying the originators and beneficiaries of funds.

IP Blocking and Geofencing: Many global VASPs implement IP blocking and geofencing to prevent users from comprehensively sanctioned jurisdictions from accessing their platforms, regardless of the user's nationality.

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 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.

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

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