Belize

Disclaimer: The regulatory information provided below is for general informational purposes only and may not reflect the most current legal developments. Cryptocurrency regulations are rapidly evolving and can change frequently. This information should not be considered legal or tax advice. Before making any business or investment decisions, please consult with qualified legal, tax, or financial professionals familiar with your specific jurisdiction and circumstances. Always verify current regulations with official government sources and regulatory bodies.

Legal Classification & Regulatory Framework

Cryptocurrency Status

Cryptocurrency is not considered legal tender in Belize. The Belize dollar (BZD) remains the only official currency for everyday transactions, and businesses are not required to accept Bitcoin or any other digital asset as payment. However, the government recognizes cryptocurrencies as a category of „virtual assets“ under the Financial Services Commission Act of 2023.

Under this legislation, virtual assets are defined broadly as any digital representation of value that can be traded, transferred, or used for payment or investment purposes. This definition encompasses cryptocurrencies such as Bitcoin and Ethereum, stablecoins, non-fungible tokens (NFTs), and certain in-game currencies. Cryptocurrency is generally treated as property or an intangible asset rather than as currency for regulatory and tax purposes.

Individuals in Belize are permitted to hold, store, and manage their own cryptocurrency. There is no law prohibiting the personal ownership of digital assets, and using offshore exchanges or personal wallets for private purposes is allowed. However, business activities involving virtual assets on behalf of others have been subject to significant restrictions as Belize develops its regulatory framework.

Tax Treatment

Belize operates a territorial tax system, which represents one of its most distinctive characteristics for cryptocurrency holders. Under this system, only income sourced within Belize is subject to Belizean taxation. Foreign-sourced income, including crypto trading profits generated through offshore platforms, is generally exempt from local taxation.

Cryptocurrency trading that takes place through foreign exchanges or platforms is typically considered foreign-sourced and therefore not subject to Belize income tax. This treatment makes Belize potentially attractive for individuals holding or trading crypto assets internationally. However, once someone becomes a Belize tax resident by spending at least 183 days in the country within a tax year, they must report worldwide income even though only Belize-sourced income is actually taxable.

Operating a cryptocurrency-related business within Belize would likely trigger taxation under normal business tax rules. Businesses and self-employed individuals in Belize pay business tax at rates varying from 1.75% to 19% depending on the industry and type of income. Any crypto gains derived from Belize-sourced activities would potentially be subject to these standard tax provisions.

Belize has no capital gains tax, which further enhances its appeal for long-term cryptocurrency investors. Passive income from cryptocurrency activities such as staking or lending conducted through foreign platforms would similarly fall under the territorial exemption for foreign-sourced income. There is no specific cryptocurrency reporting requirement established, though taxpayers should maintain proper records for compliance purposes.

International Business Companies (IBCs) registered in Belize that conduct crypto-related activities entirely outside the country may benefit from tax exemptions on offshore income. However, professional tax advice is essential given the complexity of international tax rules and reporting obligations that may apply in an individual’s home country.

Regulatory Oversight

The Financial Services Commission (FSC) is the primary regulatory body overseeing virtual asset activities in Belize. The FSC is responsible for regulating trading businesses, financial service providers, and other entities operating in Belize’s financial sector. The Commission operates under the Financial Services Commission Act of 2023, which established the current framework for virtual asset regulation.

Section 81 of the Financial Services Commission Act prohibits conducting business involving virtual assets without a license from the FSC. The regulated activities include negotiating, brokering, or exchanging virtual assets with fiat currencies; exchanging virtual assets with one another; engaging in loans, deposits, custody, safekeeping, management, or administration of virtual assets; and participating in or providing financial services related to the issuance or sale of virtual assets.

Following the Act’s passage in April 2023, the FSC implemented a temporary prohibition on issuing licenses for virtual asset activities until the end of 2025. This moratorium was designed to allow the regulator to build capacity, strengthen supervision, conduct risk assessments, and align systems with international standards. Entities that were conducting virtual asset business before the Act’s commencement were required to notify the FSC and cease their activities within specified timelines.

The FSC has been actively developing a comprehensive regulatory framework for crypto assets. In mid-2025, the Commission issued a public questionnaire seeking input from stakeholders to help shape future regulations. This consultation process indicates the government’s intention to create a structured approach to virtual asset oversight that balances innovation with consumer protection and anti-money laundering compliance.

Recently, Belize has moved toward reopening virtual asset licensing. Legislative amendments have been introduced to provide for special licenses for trading in virtual assets, with such licenses expected to transition to full licenses under a permanent legislative framework. The government has signaled openness to „responsible innovation and high-quality investment“ in the digital asset sector while maintaining strict compliance requirements aligned with international standards.

Business Environment

Banking Relationships

Banking access for cryptocurrency-related activities in Belize presents challenges similar to those found in many jurisdictions. Traditional banks in Belize apply careful compliance checks when cryptocurrency funds enter the financial system. Converting significant amounts between cryptocurrency and Belize dollars may be difficult, delayed, or subject to extensive documentation requirements.

Many traditional banking institutions remain cautious about serving companies operating in the cryptocurrency sector, creating operational difficulties even when such activities are legally recognized. This bank hesitancy stems from compliance concerns, particularly around anti-money laundering requirements and the reputational risks associated with the crypto industry.

For individuals, moving crypto-derived funds into the Belizean banking system typically requires demonstrating the legitimate source of funds. Banks may request transaction histories, exchange statements, and other documentation before accepting deposits. Peer-to-peer transfers between private users occur but come with trust and liquidity risks given the absence of licensed local exchanges.

Offshore banking remains available in Belize, with several institutions catering to international clients. However, increased international banking regulations have made the process more rigorous in recent years. Both personal and corporate accounts are available to non-residents, though maintaining banking relationships in multiple jurisdictions is often advisable for operational flexibility when dealing with cryptocurrency-related funds.

Licensing Requirements

Until the end of 2025, the FSC did not issue any licenses for virtual asset activities under the moratorium established by the Financial Services Commission Act 2023. This meant that exchanges, custodial wallet operators, trading platforms, and similar service providers could not legally operate in or from within Belize during this period.

The regulatory framework covers a comprehensive range of virtual asset services requiring licensing. These include crypto-to-fiat exchange services, crypto-to-crypto exchange services, transfer and transmission of virtual assets, custody and safekeeping services, and participation in token issuances. Any person or entity conducting these activities as a business on behalf of others must obtain proper authorization from the FSC.

With the introduction of the Financial Services Commission Amendment Bill in late 2025, Belize began transitioning toward an active licensing regime. The FSC is now positioned to issue special, carefully controlled licenses to applicants who meet strict requirements and international standards. These special licenses must transition to full licenses by the end of 2027, pending the implementation of a comprehensive permanent legislative framework for digital assets.

Applicants for virtual asset licenses can expect requirements including robust anti-money laundering and know-your-customer (AML/KYC) controls, consumer protection measures, capital adequacy requirements, and ongoing reporting obligations. The FSC has emphasized alignment with Financial Action Task Force (FATF) standards and international best practices for virtual asset service provider regulation.

Advertising restrictions also apply under the Act. Only persons licensed, authorized, or approved under the Act may publish advertisements connected with licensable activities. Licensed entities must ensure their advertisements are clear, accurate, and not misleading, with violations subject to administrative sanctions including monetary fines.

Innovation Support

Belize has taken a measured approach to cryptocurrency and blockchain innovation, prioritizing financial stability and compliance over rapid market development. The temporary prohibition on virtual asset licensing that was in place until late 2025 reflected a cautious strategy to prepare proper regulatory infrastructure before opening the market to service providers.

The Central Bank of Belize has explored digital financial innovation, including working with fintech company Bitt to add an eWallet to the bank’s mobile payment services. This collaboration has been part of broader efforts to understand the potential value of central bank digital currencies (CBDCs) for enhancing financial inclusion and payment efficiency in Belize.

The government has expressed interest in leveraging blockchain technology and digital assets to diversify the economy beyond traditional offshore banking. Officials have indicated that Belize „cannot afford to sit out“ the transformation being driven by digitized finance, while emphasizing the need for responsible innovation and strict compliance with international standards.

There is no formal regulatory sandbox specifically for cryptocurrency and blockchain projects in Belize. However, the FSC maintains a general openness to dialogue with fintech innovators through its standard consultation processes. The public questionnaire on crypto asset regulation issued in 2025 demonstrated the regulator’s willingness to engage with industry stakeholders in shaping the future regulatory framework.

Market Characteristics

Adoption Patterns

Cryptocurrency adoption in Belize remains limited compared to some neighboring countries, partly due to the regulatory restrictions that have been in place. The absence of locally licensed exchanges means that Belizean residents who wish to acquire cryptocurrency must rely on foreign platforms and conduct purchases offshore.

The tourism sector, which is significant to Belize’s economy, has seen some interest in cryptocurrency acceptance among businesses catering to international visitors. Some resorts, tour operators, and service providers have begun accepting Bitcoin and other cryptocurrencies to accommodate tech-savvy tourists seeking convenient payment options. However, widespread merchant acceptance for day-to-day payments remains uncommon, with most businesses operating in Belize dollars or US dollars.

Digital nomads and expatriates represent a notable segment of cryptocurrency users in Belize. The country’s territorial tax system, English-speaking population, and relatively affordable cost of living attract location-independent professionals who may hold or earn cryptocurrency. For this demographic, Belize offers an environment where foreign-sourced crypto income is generally not subject to local taxation.

Remittances represent a potential use case for cryptocurrency in Belize, as the country has a significant diaspora population. Stablecoins such as USDT and USDC have gained some traction for business transactions and cross-border transfers, offering an alternative to traditional remittance channels with potentially lower fees.

Industry Focus

Belize has historically been known as an offshore financial center rather than a cryptocurrency hub. The country’s International Business Company (IBC) regime has attracted international businesses seeking favorable tax treatment and privacy protections, though this market has evolved with increasing international transparency requirements.

With the opening of virtual asset licensing, Belize may attract cryptocurrency service providers seeking a regulated environment in the Caribbean and Central American region. The government’s emphasis on „high-quality investment“ suggests a preference for established, compliant operators rather than speculative or high-risk ventures.

Blockchain applications beyond pure cryptocurrency trading may find opportunities in Belize’s economy. Potential use cases include supply chain management for the agricultural sector, land registry and real estate transactions, and financial inclusion initiatives for underbanked populations. However, such developments remain in early stages and depend on the broader evolution of the regulatory and technological infrastructure.

The small size of Belize’s domestic market (population under 500,000) means that cryptocurrency businesses operating there will likely focus on serving international clients rather than local retail users. This orientation aligns with Belize’s established role in offshore financial services and its territorial tax framework.

Regulatory Evolution

Belize’s cryptocurrency regulatory landscape has undergone significant development since the passage of the Financial Services Commission Act 2023. The initial approach of implementing a temporary prohibition on virtual asset licensing reflected caution amid global market instability and evolving international standards. This period allowed the FSC to build supervisory capacity and conduct comprehensive risk assessments.

The transition toward active licensing in late 2025 marks a new phase in Belize’s approach to digital assets. The special licensing framework provides a controlled pathway for virtual asset service providers to enter the market while maintaining strict compliance requirements. The requirement for special licenses to convert to full licenses by the end of 2027 indicates an expectation of a more comprehensive permanent regulatory framework in the coming years.

Belize has committed to aligning its virtual asset regulations with international standards, particularly those set by the Financial Action Task Force (FATF) for combating money laundering and terrorist financing. The country joined the OECD’s Crypto-Asset Reporting Framework (CARF), which establishes standards for automatic exchange of information between tax authorities regarding cryptocurrency activities.

The evolution of Belize’s cryptocurrency regulations reflects broader trends in the Caribbean and Central American region, where countries are balancing the desire to attract fintech investment with the need to maintain compliance with international financial standards. Unlike neighboring El Salvador, which adopted Bitcoin as legal tender, Belize has taken a more conservative path focused on regulated service provision rather than cryptocurrency adoption as a national currency.

Future regulatory developments are likely to include detailed rules for different categories of virtual asset service providers, enhanced consumer protection measures, and possibly clarification of the tax treatment of various cryptocurrency activities. The FSC’s ongoing consultation process suggests that stakeholder input will continue to inform the development of Belize’s digital asset regulatory framework.

For Current Information

Financial Services Commission (FSC) of Belize
https://www.belizefsc.org.bz/

Central Bank of Belize
https://www.centralbank.org.bz/

Belize Tax Service Department
https://bts.gov.bz/

Government of Belize – Official Portal
https://www.belize.gov.bz/

National Assembly of Belize – Legislation
https://www.nationalassembly.gov.bz/