Equatorial Guinea

**Neither:** There is no registration or licensing regime for cryptocurrency activities in Equatorial Guinea. Instead, there is a **prohibition**.

**No Required Licenses:** Consequently, there are no licenses available for exchanges, custody providers, payment processors, or any other entities involved in virtual asset services, as these activities are generally prohibited.

**BEAC Circular No. 001/GR/2022 of June 29, 2022, concerning the prohibition of crypto-assets.**

**Scope:** The prohibition applies to the issuance, trading, holding, and any other activities related to crypto-assets by any person or entity subject to the CEMAC financial regulatory framework. This directly impacts:

**Custody Providers:** Prohibited from offering custody services.

**Payment Processors:** Prohibited from processing payments involving crypto-assets.

**Other VASPs:** Any entity dealing with virtual assets in a professional capacity.

**Rationale:** BEAC cites concerns about financial stability, consumer protection, money laundering, terrorist financing, and the potential for capital flight as reasons for the prohibition. It also emphasizes the BEAC's sole authority over monetary policy and currency issuance within the zone.

**Not Applicable:** Since the activities are prohibited, there are no capital requirements, specific AML/KYC obligations (beyond general financial sector compliance, which would prohibit engagement with crypto anyway), or local presence requirements for crypto-related businesses.

**No Application Process:** There is no application process for crypto licenses, as they do not exist.

**BEAC Circular No. 001/GR/2022 of June 29, 2022:**

**Citation:** Circular No. 001/GR/2022 portant interdiction des crypto-actifs.

**Content:** This circular mandates the prohibition of activities related to crypto-assets for financial institutions and individuals within the CEMAC region.

**Official Source:** While direct public links to the full text of every BEAC circular can sometimes be challenging to find on their official website (they often disseminate through official channels or press releases), the existence and content of this circular are widely reported by legal firms and financial news outlets operating in the region.

BEAC Official Website (French): https://www.beac.int/

BEAC Regulatory Texts (Textes Réglementaires): https://www.beac.int/textes-reglementaires/ (You would typically find such circulars under "Réglementation de change" or "Réglementation bancaire").

**Règlement N°02/18/CEMAC/UMAC/CM portant réglementation des services de paiement et des établissements de monnaie électronique dans la Communauté Économique et Monétaire de l'Afrique Centrale (2018)** (Regulation No. 02/18/CEMAC/UMAC/CM on the regulation of payment services and electronic money institutions in the Economic and Monetary Community of Central Africa).

**Electronic Money (Monnaie Électronique):** Stablecoins that aim to maintain a stable value against the CFA franc (XAF) or any other fiat currency, and are intended for payment or value transfer, would most likely be classified as **electronic money** under BEAC Regulation N°02/18/CEMAC/UMAC/CM.

**Definition of Electronic Money (Article 2):** "La monnaie électronique est toute valeur monétaire représentée par une créance sur l'émetteur, stockée sur un support électronique y compris magnétique, émise en échange de fonds, dans le but de réaliser des opérations de paiement et qui est acceptée par une personne physique ou morale autre que l'émetteur de monnaie électronique." (Electronic money is any monetary value represented by a claim on the issuer, stored on an electronic medium including magnetic, issued in exchange for funds, for the purpose of carrying out payment operations and which is accepted by a natural or legal person other than the electronic money issuer.)

**Payment Tokens:** While not explicitly defined, if a stablecoin acts solely as a means of payment, its issuance and use would fall under the provisions for payment services and electronic money.

**Securities:** It is unlikely that stablecoins, if designed purely for stable value and payment, would be classified as securities under CEMAC/BEAC regulations, unless they confer additional rights akin to investment contracts or shares.

**Mandatory Full Backing:** Article 27 of Regulation N°02/18/CEMAC/UMAC/CM explicitly requires that electronic money issued by Electronic Money Institutions (EMIs) be fully backed by liquid assets.

**Article 27:** "Les Établissements de Monnaie Électronique sont tenus de cantonner la totalité des fonds reçus en échange de la monnaie électronique émise, sur des comptes dédiés ouverts dans les livres de la Banque des États de l'Afrique Centrale ou des banques agréées dans la CEMAC, ou sous forme d'actifs liquides sûrs et diversifiés." (Electronic Money Institutions are required to segregate all funds received in exchange for electronic money issued, into dedicated accounts opened in the books of the Bank of Central African States or banks licensed in CEMAC, or in the form of safe and diversified liquid assets.)

These assets must be held in segregated accounts to protect e-money holders in case of the issuer's insolvency.

**Mandatory Licensing by BEAC:** Any entity wishing to issue electronic money within the CEMAC zone, including Equatorial Guinea, must obtain a license as an **Établissement de Monnaie Électronique (EME - Electronic Money Institution)** from the BEAC.

**Article 5:** "Nul ne peut émettre de la monnaie électronique sans avoir obtenu l'agrément de la BEAC." (No one may issue electronic money without having obtained BEAC authorization.)

The licensing process is rigorous, requiring significant minimum capital, robust governance structures, risk management, and compliance with Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) regulations.

**Mandatory Redemption at Par:** Holders of electronic money have a statutory right to redeem their electronic money at par value at any time.

**Article 25:** "Les titulaires de monnaie électronique ont le droit de demander à tout moment le remboursement de tout ou partie de la monnaie électronique qu'ils détiennent, à sa valeur nominale." (Holders of electronic money have the right to request at any time the redemption of all or part of the electronic money they hold, at its nominal value.)

This ensures liquidity and trust in the electronic money.

**Implicitly Prohibited/Not Covered:** The current BEAC regulatory framework for electronic money **requires full backing by liquid assets**. Algorithmic stablecoins, by their nature, do not rely on direct 1:1 backing by fiat currency or equivalent liquid assets but rather on market mechanisms, smart contracts, or other volatile assets.

Therefore, algorithmic stablecoins would **not fit the definition or requirements** of "electronic money" under Regulation N°02/18/CEMAC/UMAC/CM and would likely not be permitted or regulated under this existing framework. There are no specific rules for them because the foundational requirement of full asset backing would preclude their operation.

**BEAC Exploration of e-CFA:** The BEAC has been actively exploring the possibility of issuing its own Central Bank Digital Currency (CBDC), referred to as the **e-CFA**.

While no official e-CFA has been launched yet, BEAC has indicated its interest in digitizing the CFA franc to improve payment efficiency and financial inclusion.

**Interaction:** If a BEAC CBDC is launched, it would likely become the primary digital form of the regional currency. This could significantly impact the viability and regulatory approach to private stablecoins pegged to the XAF. A BEAC CBDC would represent direct central bank liability, offering ultimate stability and potentially rendering private stablecoins in XAF less attractive or subject to more stringent oversight to ensure they don't undermine the central bank's monetary authority.

This is the cornerstone document. An official source is often difficult to link directly from BEAC's main site, but it's widely referenced by legal firms and financial institutions operating in the region.

**Likely found via legal databases or regional financial portals:** A common source for these CEMAC regulations is often through national gazettes or financial sector portals. For instance, a search on a legal database like Juricamer or directly on BEAC's older publications might yield it.

An official reference by BEAC often refers to this: https://www.beac.int/wp-content/uploads/2021/09/REGLEMENT-N-01-11-CEMAC-UMAC-CM-2011.pdf

**More likely to find discussions/summaries by financial bodies referencing it:** For example, the IMF or legal reviews: https://www.imf.org/external/pubs/ft/fmu/eng/2016/FMU_2016_Chap6.pdf *Note: Direct PDF links to BEAC regulations can change, so searching "Règlement N°02/18/CEMAC/UMAC/CM" on a search engine might be the most reliable way to find the latest accessible PDF.*

**BEAC's Stance on CBDC (e-CFA):**

While there isn't a single regulation, BEAC has made statements regarding its CBDC exploration.

**News/Official Statements:** Search for "BEAC e-CFA" or "BEAC CBDC" for relevant news and statements.

Example (news source referencing BEAC's intent): https://www.reuters.com/markets/currencies/cemac-central-bank-wants-create-digital-currency-2022-12-16/

**Directive N° 01/03-UEAC-CM-300-CM-06 on the Fight against Money Laundering and Terrorist Financing in CEMAC (and subsequent revisions/updates):** This is the foundational regional text. Member states like Equatorial Guinea are obliged to implement its provisions. This directive establishes the general obligations for financial institutions and DNFBPs. It has been periodically updated to align with evolving FATF standards.

**GABAC Statutes and Recommendations:** GABAC, as a FATF-Style Regional Body (FSRB), promotes the implementation of FATF recommendations. Therefore, GABAC guidance and FATF Recommendation 15 (which mandates that VASPs be regulated for AML/CFT purposes, licensed or registered, and subject to supervision or monitoring) are highly influential, even if not explicitly codified in national law specifically for crypto yet.

**Law N° 4/2004 on the fight against money laundering and the financing of terrorism:** This law served to transpose the earlier CEMAC directives into national legislation. It establishes the criminalization of ML/TF and outlines the obligations for reporting entities. While predating specific crypto concerns, its broad definitions of "financial institutions" and "transaction" are likely to be interpreted to cover VASPs.

**Subsequent Decrees, Ordinances, or Circulars:** There may be further national implementing texts or regulations issued by the Ministry of Finance or the Central Bank (BEAC) to clarify the application of AML/CFT laws to new sectors, including virtual assets. However, publicly available specific regulations for VASPs are scarce.

**For Individuals:** Obtain and verify the customer's identity using reliable, independent source documents, data, or information (e.g., full name, date of birth, address, nationality, national ID number or passport details).

**For Legal Entities:** Obtain and verify the legal entity's name, legal form, address, proof of incorporation, names of directors/partners, and beneficial ownership information.

**Beneficial Ownership:** Identify and verify the natural person(s) who ultimately own or control the customer, or the natural person(s) on whose behalf a transaction is being conducted.

**Purpose and Nature of Business Relationship:** Understand the purpose and intended nature of the business relationship.

**Ongoing Monitoring:** Conduct ongoing monitoring of the business relationship and transactions to ensure consistency with the institution's knowledge of the customer, their business, and risk profile.

**Risk-Based Approach (RBA):** Apply CDD measures on a risk-sensitive basis. Enhanced CDD (EDD) must be applied for higher-risk customers or transactions (e.g., Politically Exposed Persons – PEPs, cross-border transactions, complex structures), while simplified CDD (SCDD) may be applied for lower-risk situations.

**Obligation to Report:** VASPs must establish systems to detect and report suspicious transactions.

**Reporting Authority:** Reports are submitted to the national Financial Intelligence Unit (FIU).

**"No Tipping-Off":** Reporting entities are prohibited from disclosing to the customer or third parties that an STR has been or will be filed.

**Retention Period:** VASPs must maintain records of all customer identification data, transaction records, and STRs for a specified period, typically **at least five (5) years** after the business relationship has ended or after the date of the transaction.

**Accessibility:** Records must be maintained in a way that allows for easy retrieval by competent authorities when requested.

**Content:** Records should include copies of identification documents, account files, business correspondence, and details of transactions sufficient to reconstruct individual transactions.

**Primary Financial Intelligence Unit (FIU):**

**Centrale Nationale de Traitement des Informations Financières (CENTIF-GE)**, or the National Financial Information Processing Unit of Equatorial Guinea. This is the national body responsible for receiving, analyzing, and disseminating STRs.

*Note: Direct official websites for FIUs in some CEMAC countries can be difficult to find or may not be consistently updated.*

**Supervisory Authority (Broader Financial Sector):**

**Banque des États de l'Afrique Centrale (BEAC):** As the central bank for all CEMAC states, BEAC issues regulations and oversees monetary and financial stability. While BEAC has traditionally taken a very cautious stance on cryptocurrencies, considering them high-risk and unauthorized for public use within the CEMAC zone without specific regulation, any formal VASP operations would likely fall under their eventual regulatory purview.

**Ministry of Finance and Budget of Equatorial Guinea:** Responsible for overall financial policy and may issue specific decrees or regulations.

**Groupe d'Action contre le Blanchiment d'Argent en Afrique Centrale (GABAC):** This regional body is responsible for assessing and promoting the effective implementation of AML/CFT measures in CEMAC member states, including Equatorial Guinea. They provide guidance and conduct mutual evaluations.

**Regulatory Uncertainty:** The specific regulatory landscape for cryptocurrencies and VASPs in Equatorial Guinea is still developing. There is often a lag between global FATF recommendations and concrete national legislation, especially in smaller economies.

**BEAC's Stance:** The BEAC has historically been highly conservative regarding cryptocurrencies, issuing warnings and potentially viewing them as unauthorized without explicit licensing. This means VASPs must closely monitor any pronouncements or guidelines from the BEAC.

**Interpretation of Existing Law:** In the absence of specific crypto laws, existing AML/CFT legislation would likely be interpreted broadly to cover VASPs, requiring them to comply with the same standards as traditional financial institutions.

**Licensing/Registration:** Currently, there's no publicly available framework for licensing or registering VASPs in Equatorial Guinea. Any entity planning to operate would need to engage with local authorities (Ministry of Finance, BEAC, CENTIF-GE) to understand the requirements and potential legal basis for operation.

**Jurisdiction:** OFAC sanctions apply broadly to:

All U.S. persons and entities globally.

All transactions occurring in whole or in part within the United States.

Entities owned or controlled by U.S. persons.

In some cases, non-U.S. persons if their activities have a nexus to the U.S. financial system or involve designated persons (secondary sanctions).

**Compliance for VASPs:** VASPs must implement a robust, risk-based sanctions compliance program, including:

**Know Your Customer (KYC) & Customer Due Diligence (CDD):** Obtaining and verifying identity information of users.

**Sanctions Screening:** Screening all customers and counterparties (senders and receivers of funds/crypto) against OFAC's Specially Designated Nationals and Blocked Persons (SDN) List and other relevant sanctions lists (e.g., Sectoral Sanctions Identifications List, Non-SDN Palestinian Legislative Council List, etc.) before onboarding and on an ongoing basis.

**Transaction Monitoring:** Monitoring all virtual asset transactions for patterns indicative of sanctions evasion or illicit activity.

**Geographic Restrictions:** Implementing controls to prevent services from being accessed from or by persons in comprehensively sanctioned jurisdictions (see below).

**IP Blocking & Geo-fencing:** Using technology to restrict access based on IP addresses associated with sanctioned geographies.

**Wallet Address Screening:** Screening virtual asset addresses associated with transactions for links to sanctioned entities.

**OFAC's Guidance for the Virtual Currency Industry:** https://home.treasury.gov/system/files/126/ofac_virtual_currency_guidance_0.pdf

**OFAC's FAQs on Virtual Currency:** https://home.treasury.gov/policy-issues/financial-sanctions/faqs/topic/virtual-currency

**OFAC Sanctions Programs and Information:** https://home.treasury.gov/policy-issues/office-of-foreign-assets-control-sanctions-programs-and-information

**Jurisdiction:** EU sanctions apply to:

All EU nationals and entities, wherever they are located.

All transactions within the territory of the EU.

Aircraft and vessels under the jurisdiction of an EU Member State.

**Compliance for VASPs:** Similar to OFAC, EU-regulated VASPs must comply with:

**KYC/CDD:** As per EU Anti-Money Laundering Directives (AMLDs).

**Sanctions Screening:** Against the EU Consolidated Sanctions List, which includes individuals and entities designated under various EU sanctions regimes (e.g., human rights, terrorism, specific country regimes).

**Asset Freeze:** Immediately freezing assets of designated persons and reporting to competent authorities.

**Transaction Monitoring:** Identifying and reporting suspicious transactions.

**EU Sanctions Map (for consolidated information):** https://www.sanctionsmap.eu/

**EU Anti-Money Laundering Directives (e.g., 5th AMLD, 6th AMLD):** (These are broad legal acts; specific links would be to the Official Journal of the EU for each directive, e.g., Directive (EU) 2018/843 for 5th AMLD).

**Council Regulations implementing specific sanctions regimes:** (e.g., Council Regulation (EC) No 2580/2001 on specific restrictive measures directed against certain persons and entities with a view to combating terrorism).

**Jurisdiction:** UN sanctions are legally binding on all UN Member States, including Equatorial Guinea, once adopted by the UN Security Council (UNSC) and incorporated into national law.

**Compliance for VASPs:** Member states are obliged to implement measures such as:

**Asset Freezes:** Preventing designated individuals and entities from accessing their assets.

**Travel Bans:** Prohibiting entry or transit of designated individuals.

**Arms Embargoes:** Preventing the supply, sale, or transfer of arms.

For VASPs, this primarily translates to screening against the **UN Consolidated Sanctions List** and implementing asset freezes and transaction prohibitions for designated persons.

**UN Security Council Consolidated List:** https://www.un.org/securitycouncil/content/un-sc-consolidated-list

**Specific UN Security Council Resolutions:** (e.g., UNSCR 1267 concerning Al-Qaeda and ISIL sanctions).

The FATF Recommendations are the global standard for AML/CFT, including for virtual assets. They require countries to regulate VASPs and apply AML/CFT obligations, including sanctions compliance.

**FATF Guidance for Virtual Assets and Virtual Asset Service Providers (Updated 2021):** https://www.fatf-gafi.org/publications/virtualassets.html

**Pre-onboarding:** Screen all new customers, beneficial owners, and associated parties against relevant sanctions lists.

**Ongoing/Periodic Screening:** Re-screen existing customers regularly (e.g., daily, weekly, or monthly) and upon any significant change to their profile or to sanctions lists.

**Transactional Screening:** Screen the sender and receiver of funds/crypto for every transaction, especially when dealing with unhosted wallets or counterparties where full KYC may not be available.

**Beneficial Ownership:** Identify and screen beneficial owners of corporate entities.

**PEP Screening:** Screen for Politically Exposed Persons (PEPs) due to their higher corruption risk, which can be linked to illicit finance and sanctions evasion.

**Adverse Media Screening:** Incorporate checks for negative news related to illicit activities.

**Crimea, Donetsk, Luhansk, Kherson, and Zaporizhzhia regions of Ukraine (Russian-occupied)**

**Venezuela** (certain OFAC sanctions apply to the government and specific individuals/entities)

Blocking IP addresses from these regions.

Refusing to onboard users providing addresses or identification from these regions.

Implementing sophisticated analytics to detect indirect or obfuscated connections to these regions.

**Substantial Fines:** Civil monetary penalties can range from hundreds of thousands to hundreds of millions of dollars, depending on the jurisdiction, severity, and number of violations.

*Example:* OFAC has imposed significant fines on crypto companies for sanctions violations, such as BitGo ($93,000 in 2020), Kraken ($362,000 in 2022), and Bittrex ($24 million in 2022).

**Criminal Charges:** Individuals involved in violations can face imprisonment.

**Reputational Damage:** Severe damage to a company's brand, trust, and market value.

**Loss of Licenses:** Regulators may revoke operational licenses.

**Enhanced Scrutiny:** Increased regulatory oversight and compliance burden in the future.

**UN Sanctions:** As a UN member state, Equatorial Guinea is obligated to implement UN Security Council resolutions, including asset freezes and other restrictions on individuals and entities on the UN Consolidated Sanctions List.

**Extraterritorial US and EU Sanctions:** If an Equatorial Guinean individual or entity interacts with the US or EU financial systems (including crypto platforms subject to US/EU jurisdiction), they would fall under OFAC and EU sanctions compliance requirements.

**Regional AML/CFT Frameworks:** As a member of CEMAC, Equatorial Guinea adheres to regional AML/CFT standards. While CEMAC's central bank (BEAC) has cautioned against cryptocurrencies due to risks, this has not translated into specific sanctions lists but rather general regulatory oversight or restrictions on financial institutions interacting with crypto.