Introduction

Attitude of the country towards ICOs/token sales

• Resolución ASFI No. 044/2014 bans all use and trade of virtual currencies and assets, including ICO tokens.
• ICOs, as a fundraising method using tokens or crypto, are fully banned.
• There is no legal framework to authorize or regulate ICOs or token sales.

• Authorities actively monitor and prosecute unauthorized ICOs or token sales under laws against illegal financial activities, fraud, or scams.
• Public warnings discourage ICO investments or promotions.
• Participants face legal sanctions, fines, or criminal charges.

• Protect consumers from fraud and speculative risks.
• Preserve financial system stability.
• Maintain monetary sovereignty (only the Boliviano is legal tender).
• Lack of regulatory capacity to supervise such complex instruments.

• No signs of regulatory easing on ICOs or tokens.
• The government favors centralized financial systems and remains skeptical about decentralized finance (DeFi).
• Any future changes would require major reforms and political support.

Legal affairs

Presence of any explicit regulation on ICOs and the issuance of token/coins

• Bolivia has not created any law or regulation that licenses or recognizes ICOs, tokens, or cryptocurrencies.
• ICOs and token sales have no legal basis in the country.

• Resolución ASFI No. 044/2014 bans the use, trade, and promotion of virtual currencies and digital tokens, including cryptocurrencies.
• This ban covers ICOs and token sales as they involve issuing and selling such tokens.

• No agency grants licenses or approvals for ICOs or token issuance.
• Running an ICO or issuing tokens without approval is illegal and punishable.

• People or entities involved in ICOs/token sales risk prosecution under laws on:
• Unauthorized financial activities
• Consumer protection
• Anti-fraud regulations

Presence of any explicit restrictions on ICOs or the issuance, distribution and/or transfer of token/coins

• Bolivia’s financial regulator, Central Bank, issued Resolution No. 044/2014 that:
• Bans the use, trade, issuance, and promotion of any virtual currency or digital tokens, including ICO-related tokens.
• Applies to all individuals, companies, and financial institutions.
• This means issuing, distributing, or transferring tokens or coins (including via ICOs) is illegal.

• People or entities involved in ICOs or token sales can face:
• Administrative penalties
• Criminal charges for unauthorized financial activities and fraud
• There are no legal exceptions or licenses allowing such activities.

• Bolivia has no laws permitting ICOs, token issuance, or crypto assets.
• Only the Boliviano (BOB) is recognized as legal currency.

• Token transfers or trading, whether peer-to-peer or via platforms, are illegal and may lead to investigations or penalties.
• Crypto exchanges, wallets, or brokers offering token services are effectively banned.

Obligations and requirements to issue token/coins

Classification of token/coins in the jurisdiction

Presence of a duty to publish a prospectus bevor offering token/coins to investors

• Token or coin offerings (including ICOs) are explicitly prohibited under Central Bank Resolution No. 044/2014.
• Since such offerings are illegal, no legal framework or rules exist that require or regulate the publication of a prospectus for these instruments.
• Any attempt to offer tokens or coins to investors is considered unauthorized and unlawful, and therefore no formal disclosure obligations apply.

Presence of AML/KYC requirements that are needed to be fulfilled regarding (i) the initial issuance of token/coins and (ii) any following transfer of token/coins to third parties

• Token or coin issuance is illegal in Bolivia; hence, no regulated issuance process exists.
• Consequently, there are no AML/KYC obligations formally established for such issuance.
• Any attempt to issue tokens would be considered unauthorized financial activity, subject to enforcement and penalties.

• Transfers or trading of tokens/coins are not legally recognized and fall outside the regulatory perimeter.
• No AML/KYC rules are in place specifically addressing token transfers.
• However, general AML/CFT regulations under Bolivian law apply to regulated financial institutions and intermediaries—but since crypto assets are banned, these do not extend to token transfers.

• Bolivia enforces AML/CFT obligations on financial institutions, cooperatives, and other regulated entities following international standards (e.g., FATF/GAFILAT).
• These include customer identification, transaction monitoring, and suspicious activity reporting.
• But these obligations apply only to recognized financial products and services, not prohibited virtual currencies or tokens.

Additional comments regarding (i) the legal situation for ICOs/token/coins and (ii) any following transfer of token/coins to third parties

• Bolivia strictly prohibits ICOs, token issuance, and all virtual currency use under Central Bank Resolution No. 044/2014.
• This ban covers using, issuing, selling, and promoting cryptocurrencies and tokens in the financial system.
• No legal framework exists to conduct ICOs or tokenize assets; such activities are illegal financial intermediation.
• Regulatory bodies (ASFI and Central Bank) actively monitor and punish violations, including arrests related to unauthorized crypto activities.
• The government aims to protect consumers, preserve monetary sovereignty, and prevent financial fraud or instability.
• No known plans exist to ease or change this ban soon.

• Token or coin transfers and trading are not legally recognized in Bolivia.
• Since tokens are not lawful financial instruments, transferring them is unauthorized financial activity.
• Token holders have no legal protections; transfers happen at their own risk without oversight.
• Platforms or intermediaries that enable these transfers operate illegally and face criminal and administrative penalties.
• The government sees token transfers as possible tools for money laundering and fraud, leading to strict controls.
• As a result, crypto transfers mostly occur underground, exposing users to high legal and financial risks.

Economic conditions

Market size for ICOs/token sales and existence of any previous regulated ICO/token sales in the jurisdiction

Additional comments regarding the economic situation for ICOs/token sales or what companies must be aware of in this business area

• ICOs and token sales are explicitly banned in Bolivia, so no legal market or ecosystem exists.
• Companies trying ICOs face serious legal and financial penalties, including fines, asset seizures, and criminal charges.

• Domestic investors cannot legally participate in ICOs or token sales, limiting local fundraising possibilities.

• ICOs or token sales conducted outside the law must operate underground or from abroad, which increases risks like government crackdowns and reputational harm.
• Investors lack legal protection in such cases.

• Bolivia’s financial system is traditional and state-controlled, relying on bank deposits, cooperatives, and government bonds.
• Innovative methods like ICOs are not accepted alternatives.

• Avoid ICOs, token sales, or crypto fundraising in Bolivia to stay compliant.
• Use traditional financing, equity investments, or regulated crowdfunding instead.
• Keep an eye on regulatory changes or blockchain pilot projects, even though the environment is currently restrictive.
• Protect consumer trust by avoiding unauthorized token offerings.

• ICOs/token sales have virtually no economic impact in Bolivia due to the ban.
• There is no infrastructure, investor demand, or regulatory support for this market.
• The government prioritizes financial stability, consumer protection, and monetary sovereignty over fintech innovation in this area.