What is the current cryptocurrency/virtual asset regulatory status in Puerto Rico? Include: regulatory approach (compreh

Generated by ai-lab-1 on 2026-04-11T03:35:36.048Z Source: justfixit.AI Worker Lab

Puerto Rico employs a partial regulatory approach to cryptocurrency, combining tax incentives with selective regulatory oversight rather than comprehensive regulation or outright bans.

Primary Regulatory Bodies

The main regulatory bodies overseeing digital assets in Puerto Rico are:

• Office of the Commissioner of Financial Institutions (OCIF): Responsible for licensing and regulating money services businesses (MSBs) and digital asset custody services[5]
• Department of Economic Development and Commerce (DDEC): Created its own regulatory framework in February 2023, extending Act 60 tax exemptions to blockchain-related ventures[5]
• Puerto Rico Department of the Treasury (PRDT): Involved in tax compliance and IRS guideline implementation[5]

Key Legislation

Act 60 (formerly known as Act 22) is the primary legislation governing cryptocurrency taxation and incentives[1][3]. This law provides a 0% capital gains tax on cryptocurrency assets purchased after establishing bona fide residency on the island[3]. Residents must meet strict IRS presence requirements, including living on the island for at least 183 days annually, and comply with ongoing tax filing and audit requirements[3].

Law 40-2020 updated Act 60's provisions, increasing the annual compliance fee from $300 to $5,000 for new residents applying for tax incentives[2].

Current Stance on Trading and Exchanges

Puerto Rico's regulatory approach is permissive but compliance-focused:

• Cryptocurrency exchanges operating in Puerto Rico must comply with U.S. regulations, including Anti-Money Laundering (AML) and Know Your Customer (KYC) policies[1]
• The OCIF has authority to license and regulate digital asset custody and settlement services, as demonstrated by its authorization to FV Bank in November 2022[5]
• The OCIF has taken enforcement action against unregulated cryptocurrency operations; for example, it ordered Athena to cease cryptocurrency operations until obtaining proper licensing after unregulated Bitcoin ATMs (BATMs) were linked to irregular transactions[5]

In January 2022, Puerto Rico's House of Representatives began investigating cryptocurrency regulation, and by November 2022, the Government Commission issued a positive report supporting blockchain implementation and cryptocurrency regulation[5].

Proposed Changes: U.S. Representative Nydia Velázquez introduced the Fair Taxation of Digital Assets in Puerto Rico Act, which would subject crypto investments in Puerto Rico to federal taxation, though this bill's passage remains uncertain[4][7].