Remote VASP serving residents 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.

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

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.

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).

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.

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

Public Discouragement: The public is strongly advised against engaging with cryptocurrencies due to high risks.

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.

Preventative Measures: The CBG's public warnings serve as a primary preventative measure against potential illicit activities and consumer harm.

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.