Stablecoin issuer / redeemer in Chad

BEAC Circular No. 001/GR/2022/GR of March 28, 2022, explicitly prohibits financial institutions and all economic agents in the CEMAC region from engaging in activities related to crypto-assets, including holding, exchanging, selling, or purchasing crypto-assets. This directive was reinforced by a subsequent letter to all banks and financial institutions.

Crucially, Article 4 of Regulation R-2023/CEMAC/UMAC/CM/04 states that any activity relating to virtual assets (including issuance, trading, exchange, and custody) is prohibited unless expressly authorized by the BEAC.

No specific custodial license requirements exist for digital assets. This is not because the activity is unregulated, but because regulated financial institutions are generally warned against or prohibited from engaging in activities involving crypto assets.

The BEAC views cryptocurrencies as inconsistent with the CEMAC monetary policy and the stability of its financial system. Engaging in such activities would likely be seen as a violation of existing banking and financial regulations rather than an activity requiring a specific crypto license.

No specific rules exist. Since regulated financial institutions are not encouraged to hold or custody digital assets, there are no established rules for segregating client assets in this context.

None. The concept of a "qualified custodian" for digital assets is not defined in Chadian or BEAC regulations.

Implication: For entities operating within Chad (or any CEMAC country), the scope for legally conducting VASP activities is severely limited, if not outright eliminated. This means that domestic VASPs are effectively banned, and any attempt to operate one would be a direct violation of regional banking laws.

Evolving Stance (Strict Regulation of Virtual Assets): More recently, the BEAC has introduced a framework for "virtual assets" which, while not legalizing cryptocurrencies broadly, defines and establishes a very strict control mechanism. Regulation R-2023/CEMAC/UMAC/CM/04 of April 2023 on the Regulation of Virtual Assets in the CEMAC Zone is the cornerstone of this framework.

This regulation defines "Virtual Assets" as any digital representation of value that can be digitally traded or transferred and used for payment or investment purposes. This definition is broad enough to include stablecoins.

It distinguishes between "Crypto-assets" (virtual assets that can be freely exchanged or transferred) and "Digital Tokens" (virtual assets issued by a single issuer as an instrument of payment or exchange). Stablecoins would likely fall under "Digital Tokens" if they aim to serve as a means of payment, or "Crypto-assets" if they are more speculative or broadly traded.

Prohibition: The Banque des États de l'Afrique Centrale (BEAC) has issued directives (e.g., circulars in 2022 and earlier) that effectively prohibit or severely restrict cryptocurrency activities within the CEMAC zone, including Chad. These directives aim to safeguard monetary stability and prevent financial crime risks.

Implication for VASPs: This means that, currently, legally establishing and operating a VASP in Chad is highly problematic, if not outright impossible. Any operations would be considered unauthorized and potentially illegal.

Carrying out occasional transactions above a certain threshold (e.g., EUR 1,000 equivalent for VASPs, as per FATF guidance).

Natural Persons: Obtain full name, date of birth, place of birth, nationality, physical address, and a unique identification number (e.g., national ID card, passport number). Verification through reliable, independent source documents or data.

Evidence fact td.aml.legal-entities-obtain-full-name not found (may have been renamed).

Identification of Beneficial Owners: Take reasonable measures to understand the ownership and control structure of the customer and identify the natural persons who ultimately own or control the customer. This often involves identifying individuals holding 25% or more of shares or voting rights, or otherwise exercising control.

Ongoing Monitoring: Continuously monitor the business relationship, including scrutiny of transactions undertaken throughout the course of that relationship, to ensure that the transactions are consistent with the VASP's knowledge of the customer, their business, and risk profile.

Enhanced Due Diligence (EDD): Apply EDD for higher-risk categories, which would typically include:

Obligation to Report: VASPs would be legally obligated to report any suspicious transactions, attempts at transactions, or activities that give rise to a suspicion of money laundering or terrorist financing to Chad's Financial Intelligence Unit (FIU).