Equatorial Guinea -- Licensing Requirements Regulatory Overview

**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/