Introduction

Attitude of the country towards financial services using crypto currencies

• Bolivia is one of the most restrictive Latin American countries regarding cryptocurrencies.
• The Central Bank (Banco Central de Bolivia, BCB) issued Resolution No. 010/2014, banning the use, trading, and marketing of any cryptocurrencies or digital currencies.
• This ban applies to cryptocurrencies as payment methods, investment assets, or financial service tools.

• Participating in crypto transactions or offering crypto-related services can lead to fines, sanctions, or criminal charges.
• Financial institutions are prohibited from dealing with cryptocurrencies or related services.

• Risks of fraud, money laundering, and terrorism financing.
• High volatility and lack of intrinsic value.
• Threats to the national currency’s stability.
• Absence of central authority backing cryptocurrencies.

• Informal and underground crypto trading exists but is illegal and unregulated.
• No legal crypto exchanges or wallet providers operate in Bolivia.

• Legalization or regulation of cryptocurrencies is unlikely soon.
• FinTechs and financial service providers must avoid crypto involvement to comply with the law.

Legal affairs

Obligations and requirements to provide financial services using crypto currencies described above

• The Central Bank of Bolivia (BCB) Resolution No. 010/2014 strictly bans the use, sale, and promotion of cryptocurrencies or digital currencies as payment methods or financial services.
• This ban covers:
• Crypto exchanges
• Wallet providers
• Crypto-based payment services
• Investment or advisory services related to crypto assets

• No licenses or regulatory authorizations are available or issued for crypto financial services.
• Financial institutions and fintech companies are prohibited from engaging in or facilitating crypto transactions.

• Providers or individuals offering crypto financial services face:
• Fines and sanctions
• Suspension of business operations
• Criminal prosecution for illegal financial activities or money laundering facilitation
• Financial entities must have policies to prevent any dealings with cryptocurrencies, including:

• Monitoring for crypto-related transactions
• Reporting suspicious activities to the Financial Investigations Unit (UIF)

• Banks and payment service providers cannot:
• Offer crypto accounts or wallets
• Process cryptocurrency payments
• Advertise or promote crypto financial products

Additional comments regarding the legal situation for financial services using crypto currencies or what FinTech’s must be aware of in this business area

Economic conditions

Market size for financial services using crypto currencies and biggest companies in this business area

• Crypto-related companies cannot legally register or operate in Bolivia, even if based abroad but serving Bolivian users.

• Small, informal crypto use exists mostly among tech-savvy groups in cities like La Paz, Santa Cruz, and Cochabamba.
• These operate peer-to-peer (P2P) trading via messaging apps or VPNs to access foreign platforms, which are officially blocked or restricted.
• This activity is illegal, risky, and not measurable by official data. Participants risk criminal charges and asset seizures.

• No registered crypto exchanges, wallet providers, or investment firms.
• Crypto mining is banned since 2014.
• Authorities have conducted raids and arrests related to unauthorized crypto activities, including educational groups or investment clubs.

Additional comments regarding the economic situation for financial services using crypto currencies or what FinTech’s must be aware of in this business area

Bolivia’s Crypto Financial Services: Strict Prohibition and Fintech Guidance

• Bolivia enforces one of the toughest bans globally on cryptocurrencies via Banco Central de Bolivia’s Resolution No. 010/2014.
• This ban covers all crypto-related financial services: payments, investments, trading, custody, and advisory.
• There are no legal exceptions or sandbox provisions for crypto financial activities.

• Offering crypto financial services risks:
• Heavy fines
• Criminal charges, including illegal financial activity and money laundering facilitation
• Revocation of licenses for regulated firms
• Regulators actively monitor and penalize unauthorized crypto activities.

• Fintech companies in Bolivia must:
• Completely exclude cryptocurrencies from their products and services
• Have strong internal controls to block crypto transactions and promotions
• Train employees on compliance with the crypto ban and AML/CFT rules
• Blockchain projects must avoid cryptocurrencies or clearly separate tokens from financial uses.

• The ban restricts crypto-based fintech innovation, but blockchain technology itself is not banned.
• Use cases like supply chain tracking or identity management are possible if they do not involve crypto tokens.
• The regulatory environment remains very conservative; FinTechs should stay alert for any future changes.