Remote VASP serving residents in Tunisia

Cryptocurrencies are not recognized as legal tender in Tunisia.

Transactions involving cryptocurrencies are not authorized by the BCT.

Exchanges: There is no legal framework allowing the operation of crypto exchanges. Any attempt to operate one would be in violation of the BCT's stance and existing financial laws.

Custody Providers: Similarly, no specific license exists. Providing custody for virtual assets would fall into the same regulatory void/prohibition.

Payment Processors: Companies processing payments in or with cryptocurrencies would face the same regulatory hurdles as exchanges. Traditional payment service provider licenses (issued by the BCT for fiat currencies) would not extend to virtual assets given their non-recognition.

Local Presence: A physical presence in Tunisia, including a local registered office, and potentially local management and staff.

Law No. 2022-77 of December 26, 2022, on Combating Money Laundering and Terrorist Financing (Loi n° 2022-77 du 26 décembre 2022, relative à la lutte contre le blanchiment d'argent et le financement du terrorisme).

Definition of Virtual Assets: The law generally adopts a broad definition consistent with FATF standards, recognizing them as a digital representation of value that can be digitally traded or transferred and used for payment or investment purposes.

Definition of Virtual Asset Service Providers (VASPs): It explicitly includes VASPs as "reporting entities" (or "obliged entities" / "personnes assujetties"). While the law itself may not define all types of VASPs exhaustively, it typically covers entities that conduct one or more of the following activities for or on behalf of another natural or legal person:

Exchange between virtual assets and fiat currencies.

Exchange between one or more forms of virtual assets.

Evidence fact tn.aml.safekeepingandor-administration-of-virtual not found (may have been renamed).

Participation in and provision of financial services related to an issuer's offer and/or sale of a virtual asset.

Compliance Requirement: Tunisia is legally bound to implement UN Security Council (UNSC) resolutions that impose targeted financial sanctions. These primarily relate to counter-terrorism (e.g., against Al-Qaida, ISIL/Da'esh affiliates) and counter-proliferation of weapons of mass destruction. All financial institutions, including VASPs (once explicitly regulated or by analogy), must freeze assets and prevent funds/services from being made available to designated individuals and entities on the UN Consolidated Sanctions List.

Legal Basis: UN Security Council Resolutions, particularly those under Chapter VII of the UN Charter (e.g., Resolution 1267 (Al-Qaida/ISIL), 1373 (general counter-terrorism), 1718 (DPRK), 2231 (Iran). Tunisia incorporates these into its national law.

Monitor transactions for suspicious activity.

Implement risk-based approaches.

Tunisia's Status: The MENAFATF's 2019 Mutual Evaluation Report (MER) for Tunisia highlighted that Tunisia needed to adopt legislative and regulatory measures to apply the FATF Recommendations to virtual assets and VASPs. While progress has been made, the underlying AML/CFT obligations apply.

Absence of a Legal Framework: There is no specific law or regulation defining cryptocurrencies, digital assets, or the services related to them (including custody).

Official Warnings: The BCT has issued several warnings against the use of cryptocurrencies, citing their speculative nature, lack of legal tender status, volatility, and risks associated with money laundering and terrorist financing. These warnings generally discourage engagement with these assets rather than regulate their operation.

No Licensing Regime for VASPs: Without a defined legal framework, there are no specific licensing requirements for Virtual Asset Service Providers (VASPs), including those offering custody services.

The BCT reiterated its warnings about the risks associated with virtual currencies, emphasizing their speculative nature, the absence of an issuer, legal guarantee, or supervision from any authority. It also highlighted the risks of money laundering and terrorist financing. The BCT stated that "dealing with virtual currencies exposes users to risks of fraud and theft, and does not benefit from any legal protection or recourse to local or foreign financial authorities."

Entity Targeted: Iskander Najar (also sometimes reported as Islem Najar), a young Tunisian individual. Violation Type: Illegally using cryptocurrency to transfer money abroad, violating Tunisian foreign exchange laws (specifically, the prohibition on non-authorized transfers of foreign currency) and potentially money laundering charges. Penalty Amount: Initial sentence of two years in prison and a fine of 5,000 Tunisian Dinars (TND) (approximately $1,700 at the time). This sentence was later reduced on appeal. Specific details of the reduced fine are less widely reported than the prison sentence reduction.

Outcome: Najar was convicted and served time in prison. The case garnered significant international attention, with many advocating for his release and highlighting the severity of Tunisia's stance on crypto. His sentence was ultimately reduced on appeal, and he was released after serving part of his term. The outcome reinforced Tunisia's strict interpretation of its foreign exchange laws concerning digital assets.

Legal Basis: UN Security Council Resolutions, particularly those under Chapter VII of the UN Charter (e.g., Resolution 1267 (Al-Qaida/ISIL), 1373 (general counter-terrorism), 1718 (DPRK), 2231 (Iran). Tunisia incorporates these into its national law.