Crypto-funded debit card in Equatorial Guinea

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:

Exchanges: Prohibited from operating.

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.

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.

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.

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).

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.

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.

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

Identification and Verification:

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.

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.

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.

No Specific Crypto Capital Gains Tax: There is no distinct capital gains tax specifically for cryptocurrency.

General Interpretation: If cryptocurrency is treated as an "asset" or "property," then any gains realized from its disposal (e.g., selling crypto for fiat, or exchanging one crypto for another) would likely be subject to the general capital gains provisions.

PIT Rates (General): Progressive rates apply, ranging from 2% to 35% on annual income, depending on the income bracket. The specific rate would depend on the total income, including any crypto gains.

CIT Rate (General): The standard corporate income tax rate is 35%. Certain sectors (e.g., oil and gas) may have different specific regimes.