Before June 2024, owning or trading cryptocurrency in Bolivia was a direct violation of the law. The Central Bank of Bolivia had banned all digital asset transactions since 2014, citing risks to financial stability and the integrity of the boliviano. People who traded Bitcoin or Ethereum faced potential legal consequences - but no one knew exactly what those were. Fines? Jail time? Asset seizures? The rules were silent. That changed in 2024. Bolivia didn’t just relax its stance - it rewrote the entire rulebook.
What’s Legal Now in Bolivia?
As of 2025, you can legally buy, sell, and hold cryptocurrencies in Bolivia. Stablecoins like USDT and USDC are fully recognized as valid Electronic Payment Instruments (EPI). That means you can use them to pay employees, settle invoices, or transfer money - but only through licensed banks or authorized financial platforms. You can’t walk into a grocery store and pay with Bitcoin. The boliviano remains the only legal tender for everyday purchases.The shift came with Board Resolution N°082/2024, which officially lifted the decade-long ban. Since then, crypto transaction volumes have exploded. The Central Bank reported $294 million in crypto transactions in the first half of 2025 - up from just $46.5 million at the start of 2024. That’s a 630% jump in less than a year. Most users are individuals, not businesses, and three out of four are men. Binance and other international exchanges are popular, but transactions must go through Bolivian banks to stay compliant.
Who Regulates Crypto in Bolivia?
Bolivia doesn’t leave crypto regulation to chance. Three key agencies are in charge:- Central Bank of Bolivia (BCB): The main regulator. They approve which financial institutions can handle crypto transactions and set reporting rules.
- Financial System Supervisory Authority (ASFI): Oversees financial institutions to ensure they follow anti-money laundering and know-your-customer rules.
- Financial Investigations Unit: Watches for suspicious activity, fraud, and connections to international sanctions lists.
Banks are required to report every crypto transaction daily. If someone tries to send USDT to an account linked to a sanctioned individual in Russia or Iran, the bank must block it and alert regulators. This isn’t optional - it’s built into the system.
What Are the Penalties for Breaking the Rules?
Here’s the critical part: there are no penalties for owning or trading crypto - as long as you use the approved channels. The law doesn’t punish you for having Bitcoin. It punishes you for bypassing the system.If you use a peer-to-peer platform like LocalBitcoins or send crypto directly from your wallet to someone else’s without going through a licensed bank, you’re violating the law. That’s where penalties kick in. The exact fines aren’t published, but enforcement is real. The Central Bank has made it clear: unauthorized transfers are considered high-risk and subject to investigation.
Businesses face even stricter scrutiny. If a company pays salaries in USDT without using a regulated financial institution, they can be fined, have their business license suspended, or face criminal charges for violating financial reporting laws. The same applies to crypto mining or staking operations that don’t declare income. While individual traders aren’t taxed on capital gains, businesses must pay a 25% corporate income tax on crypto profits. Failing to report that income is tax fraud - and that carries serious consequences.
Are There Criminal Penalties?
There’s no mention of jail time for simple crypto trading. But if your crypto activity is tied to money laundering, fraud, or financing illegal operations, you’re no longer just a trader - you’re a suspect. Bolivia’s Financial Investigations Unit works closely with international agencies. If you’re sending crypto to a known darknet market or using it to hide assets from creditors, you could face criminal prosecution under existing financial crime laws.The government’s goal isn’t to lock people up. It’s to bring crypto into the light. Public awareness campaigns have been launched to help people avoid scams. Many Bolivians lost money in fake crypto schemes before 2024. Now, the state is trying to protect them - not punish them.
How Do You Stay Legal?
If you’re in Bolivia and want to trade crypto safely, here’s what you need to do:- Only use platforms connected to licensed Bolivian banks. Banco Bisa launched a USDT custody service in October 2024 - that’s a good starting point.
- Never send crypto directly between wallets unless it’s routed through a bank-approved channel.
- If you’re running a business, use stablecoins for payroll or payments only through regulated financial institutions.
- Keep records of all crypto transactions. Even though individuals don’t pay capital gains tax, you may need to prove your income if audited.
- Don’t use unregulated exchanges or P2P apps that don’t integrate with Bolivian banking systems.
There’s no gray area here. The law isn’t about banning crypto - it’s about controlling how it moves through the financial system. The government wants to track every dollar. If you cooperate, you’re fine. If you try to hide it, you’re asking for trouble.
Taxation: No Capital Gains, But Business Income Is Taxed
One of the most surprising parts of Bolivia’s new system? Individual traders don’t pay tax on profits from crypto sales. That’s rare in Latin America. If you bought Bitcoin in 2024 and sold it for a profit in 2025, you don’t owe a cent to the tax authority.But if you’re mining Bitcoin, running a staking node, or operating a crypto exchange - that’s a business. And businesses pay 25% corporate income tax on net profits. That includes earnings from staking rewards, mining payouts, or trading fees. Failing to report this income can lead to tax audits, penalties, or even criminal charges for tax evasion.
What’s Next for Bolivia?
Bolivia isn’t going it alone. In late 2024, they signed a Memorandum of Understanding with El Salvador’s National Commission for Digital Assets. El Salvador made Bitcoin legal tender. Bolivia is doing something different - letting crypto exist, but only under strict oversight. The goal is to learn from each other and build better systems.With $15.6 million in monthly crypto transactions already flowing through regulated channels, adoption is growing fast. Banks are rolling out new services. The government is investing in monitoring tools. And the message is clear: use crypto the right way, and you’re welcome. Try to slip through the cracks, and you’ll be caught.
Bottom Line: No Fear, But No Freedom Either
Bolivia’s crypto laws in 2025 are not about prohibition. They’re about control. You can trade. You can own. You can even profit - without paying capital gains tax. But you can’t move money freely. Every transaction must pass through a bank that reports to the government. That’s the trade-off.For most people, this isn’t a burden. It’s a safety net. The system protects you from scams, fraud, and illicit activity. For those who want to operate in the shadows, the risks are real - even if the exact fines aren’t listed in public documents. The message is simple: comply, or face consequences. There’s no middle ground.