On-shore VASP 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.

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:

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.

Payment Systems Providers: If a "payment processor" handles fiat payments, it would likely require a license under the National Payment System Act and regulations issued by the CBG.

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).

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

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.

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.

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.

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.

Regulator Name: Central Bank of The Gambia (CBG)

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.

Current Law: The Gambia does not have a separate Capital Gains Tax Act for individuals on most assets. Capital gains are generally taxed under the Income Tax Act if they arise from a trade or business, or from the disposal of specific types of assets like real estate or shares in a company.

Application to Crypto:

Currently, The Gambia does not have any specific tax legislation directly addressing cryptocurrencies or virtual assets. Tax treatment relies on the interpretation and application of existing general tax laws by the Gambia Revenue Authority (GRA).