Remote VASP serving residents in Mauritania

Absence of Specific Legislation: Mauritania has not enacted specific laws or decrees to regulate virtual assets, blockchain technology, or cryptocurrency service providers. Unlike many countries that have adopted or are in the process of adopting bespoke crypto regulations, Mauritania has not yet done so.

Central Bank Stance: The Banque Centrale de Mauritanie (BCM) – the country's central bank and primary financial regulator – has generally taken a cautious stance. While there hasn't been an outright ban, the BCM has historically issued warnings regarding the risks associated with cryptocurrencies, including their volatility, potential for fraud, and use in illicit activities. These warnings serve to inform the public and financial institutions of the risks rather than establishing a regulatory framework.

No Specific Licenses: Consequently, there are no specific licenses or registration requirements for cryptocurrency exchanges, custody providers, or payment processors.

Legal Uncertainty: Operating a virtual asset business in a jurisdiction without clear regulations carries significant legal and operational risks. There is no legal certainty regarding the status of contracts, consumer protection, tax implications, or the legality of operations.

Risk of Future Regulation: The absence of regulation does not mean permissibility. Mauritania could, at any time, introduce new laws, including bans, strict licensing requirements, or even retroactive measures.

Ban on Financial Institutions Dealing with Cryptocurrencies:

Legal Reference: Circular N° 004/R/2019 issued by the Banque Centrale de Mauritanie (BCM) (Central Bank of Mauritania).

Content: This circular prohibits banks, financial institutions, and payment service providers supervised by the BCM from engaging in any activities related to cryptocurrencies, including buying, selling, holding, or facilitating transactions involving them. It cites concerns about financial stability, consumer protection, money laundering, and terrorist financing.

Whether Adopted: No, the FATF Travel Rule has not been adopted or implemented in Mauritania. Instead, the country has opted for a prohibition of virtual asset transactions.

Effective Date: The prohibition on virtual asset transactions was communicated by the Banque Centrale de Mauritanie (BCM) on February 16, 2022. This communiqué effectively put in place the ban.

Summary: This communiqué informs the public that transactions using virtual currencies (cryptocurrencies) are not authorized, and no entity in Mauritania is authorized to carry out transactions with these currencies. It warns that anyone engaging in such transactions is subject to existing legal sanctions.

Financial Penalties: Fines under existing financial regulations.

Asset Seizure/Forfeiture: Assets used in or derived from illegal virtual asset activities could be subject to seizure.

Criminal Charges: Depending on the nature and scale of the activity, especially if linked to money laundering, terrorist financing, or other illicit activities, individuals could face imprisonment under Mauritanian criminal code and AML/CFT laws.

Communiqué from the Banque Centrale de Mauritanie (BCM):

What this means: The BCM's stance implies that any activity related to cryptocurrencies, including custody services, falls outside the legal and regulated financial sector and would likely be viewed as non-compliant or illegal.

Legal Basis (Indirect): The relevant legislation would be Loi N° 2013-057 portant sur les systèmes et moyens de paiement en République Islamique de Mauritanie (Law N° 2013-057 on payment systems and means in the Islamic Republic of Mauritania), and subsequent implementing regulations or circulars from the BCM regarding payment service providers and e-money. This law defines and regulates various payment instruments and services.