Mozambique -- Licensing Requirements Regulatory Overview

Mozambique currently does not have a specific, comprehensive legal or regulatory framework dedicated to the licensing or registration of cryptocurrency (virtual asset) service providers (VASPs) such as exchanges, custody providers, or payment processors dealing purely in virtual assets.

The regulatory landscape is primarily characterized by official warnings from the central bank, the Banco de Moçambique (BdM), and the potential application of existing general financial legislation by analogy, particularly concerning Anti-Money Laundering (AML) and Counter-Terrorist Financing (CFT).

Here's a breakdown:

1. Regulatory Stance and Lack of Specific Licensing

• Banco de Moçambique's Position: The BdM has repeatedly issued warnings and communiqués stating that cryptocurrencies are not legal tender in Mozambique, are not regulated by the central bank, and transactions involving them are high risk. They emphasize that there is no official protection for consumers or investors in virtual assets.

  • Specific Reference: Aviso Nº 03/GBM/2021, de 2 de Agosto (Warning Nº 03/GBM/2021, of August 2nd). This warning explicitly states that virtual assets are not considered currency, are not issued or guaranteed by the BdM, and are not subject to the legal regime of payment instruments or other financial instruments. It also highlights the risks associated with price volatility, cybercrime, lack of consumer protection, and potential for illicit activities.
    • URL (Portuguese): You can typically find this aviso on the official Banco de Moçambique website under "Avisos" or "Comunicados." A direct link might change, but searching their site for "Aviso 03/GBM/2021" will yield results. (Example search on BdM site).

• No Specific Licenses: As a direct consequence of the above, there are no specific cryptocurrency exchange licenses, crypto custody licenses, or crypto payment processor licenses issued by the BdM or any other Mozambican authority for entities dealing solely in virtual assets.

2. Registration vs. Licensing Regime

• Neither for Pure Crypto: For entities operating purely in virtual assets (e.g., crypto-to-crypto exchanges), neither a dedicated registration nor a licensing regime exists. They are currently operating in an unregulated space from a specific virtual asset perspective.
• Licensing for Traditional Financial Services: If an entity's operations involve traditional financial services (e.g., fiat-to-crypto exchanges, crypto payment processors that handle fiat currency, or entities holding fiat funds for crypto purchases), then they might fall under the existing financial licensing requirements supervised by the Banco de Moçambique or other financial regulators, depending on the specific nature of their activities. This would be interpreted under existing laws such as:
  • Lei do Sistema de Pagamentos (Law of the Payment System): Lei n.º 2/2016 de 27 de Junho – This law governs payment service providers (PSPs) and electronic money institutions (EMIs) that deal with fiat currency. If a crypto firm offers services that involve processing fiat payments, it could potentially be required to obtain a PSP or EMI license.
    • URL (Portuguese): Generally available in the Mozambican official gazette (Boletim da República) or legal databases. (Example search).
  • Lei das Instituições de Crédito e Sociedades Financeiras (Law on Credit Institutions and Financial Companies): Lei n.º 15/2022 de 13 de Dezembro – This law regulates traditional banking and financial institutions. If a crypto platform's activities start resembling deposit-taking or other regulated financial services, it could potentially fall under this.
    • URL (Portuguese): Generally available in the Mozambican official gazette (Boletim da República) or legal databases. (Example search for "Lei 15/2022").

3. Key Requirements (If traditional financial licenses were sought)

Since no specific crypto licenses exist, there are no specific requirements for crypto-native firms. However, if a firm's activities were deemed to fall under existing financial services legislation (e.g., as a Payment Service Provider), the requirements would be those applicable to traditional financial institutions:

• Capital Requirements: Significant minimum capital requirements would apply, varying based on the type of financial license (e.g., PSPs and EMIs have distinct capital requirements). These are usually denominated in Mozambican Metical (MZN).
• AML/KYC Requirements: This is the most likely area where existing regulations would apply, even for purely crypto entities, if Mozambique were to begin enforcing FATF recommendations. Financial institutions are subject to rigorous AML/CFT obligations.
  • Lei de Prevenção e Combate ao Branqueamento de Capitais e Financiamento ao Terrorismo (Law on the Prevention and Combat of Money Laundering and Terrorist Financing): Lei n.º 14/2013 de 12 de Agosto (and subsequent amendments). This law establishes obligations for various entities, including financial institutions, to implement customer due diligence (KYC), suspicious transaction reporting, record-keeping, and internal controls. While it doesn't explicitly mention virtual assets, the principles would guide future regulation.
    • URL (Portuguese): Generally available in the Mozambican official gazette (Boletim da República) or legal databases. (Example search).
• Local Presence: Typically, regulated financial institutions in Mozambique are required to have a physical presence and be incorporated locally.
• Fit and Proper Tests: Directors, managers, and significant shareholders of regulated financial institutions must undergo "fit and proper" tests by the BdM to ensure their integrity and competence.
• Operational and IT Requirements: Robust systems for risk management, internal controls, cybersecurity, and data protection would be mandatory.

4. Application Process

• No specific process for crypto firms.
• For traditional financial licenses (e.g., PSP), the application process is rigorous and involves:
  1. Pre-application discussions with the Banco de Moçambique.
  2. Submission of a comprehensive business plan, outlining services, operational model, risk management, and financial projections.
  3. Documentation of corporate structure, shareholders, and management (including "fit and proper" assessments).
  4. Proof of minimum capital.
  5. Detailed AML/CFT policies and procedures.
  6. IT and security infrastructure details.
  7. Ongoing supervision and reporting requirements once licensed.

5. Future Outlook

Mozambique is a member of the Financial Action Task Force of Southern Africa (FATF-GAFISA), which aligns with the global Financial Action Task Force (FATF). FATF has issued specific guidance for virtual assets and VASPs, recommending that countries regulate and supervise VASPs for AML/CFT purposes. It is highly probable that Mozambique will eventually introduce specific legislation to regulate virtual assets and VASPs in line with FATF recommendations. This would likely involve:

• Defining virtual assets and VASPs.
• Establishing a licensing or registration regime for VASPs.
• Imposing specific AML/CFT obligations on VASPs.

Until such specific legislation is enacted, the market for virtual assets in Mozambique remains largely unregulated, with the central bank maintaining a cautionary stance. Entities operating in this space do so at their own risk and outside a clear regulatory framework.

Disclaimer: This information is for general informational purposes only and does not constitute legal advice. Given the evolving nature of cryptocurrency regulations, it is crucial to consult with legal professionals specialized in Mozambican financial law for specific guidance.