Crypto Overview in Cabo Verde

Regulatory data is for informational purposes only and may not reflect the most current legal developments. Always consult qualified professionals before making decisions.

Legal Classification and Regulatory Framework

Cryptocurrency Status

Cabo Verde does not prohibit cryptocurrencies, and they are not recognized as legal tender. The country occupies a grey area: no statute formally classifies virtual assets as property, commodity, or security. The first dedicated legislation, Law 30/X/2023, was published in the Official Bulletin on June 21, 2023, and entered into force the following day. Its focus is on the entities that provide virtual asset services rather than on defining the assets themselves. Cryptocurrencies are broadly treated as assets subject to general financial regulation, but no official classification has been published by either the central bank or the tax authority.

The absence of a formal definition means that legal certainty depends primarily on the AML and registration obligations set out in Law 30/X/2023. Businesses and individuals seeking clarity on how assets are treated for contract, property, or insolvency purposes must rely on general civil code principles pending further legislative development.

Tax Treatment

No dedicated cryptocurrency tax legislation exists in Cabo Verde. The tax authority has not issued binding guidance on how virtual asset transactions are classified or taxed. Under the general personal income tax regime, gains on the disposal of certain assets attract a flat rate, but no official ruling confirms that this extends to crypto disposals. Corporations are subject to standard capital gains treatment under the corporate income tax regime, again without a formal ruling on virtual assets.

Companies qualifying for the Special Economic Zone for Technologies (ZEET) benefit from a reduced corporate income tax rate of 2.5%, along with VAT and import duty exemptions. Blockchain and fintech businesses that meet the ZEET criteria may be eligible for this treatment. The ZEET framework was established by Decree-Law 15/2022, which entered into force in May 2022 and runs until 2030. Businesses should obtain formal confirmation from the tax authority before relying on any particular rate for crypto-related activity.

Regulatory Oversight

Banco de Cabo Verde (BCV), the central bank, is the designated competent authority for virtual asset service providers under Law 30/X/2023. BCV is responsible for verifying AML and counter-terrorism financing compliance and overseeing the registration of entities operating as VASPs on a professional basis. The Auditoria Geral do Mercado de Valores Mobiliários (AGMVM) regulates the securities market, including public offerings and financial instruments, operating with administrative autonomy under the BCV governor’s authority. Secondary licensing and registration requirements sit with commercial trade authorities and municipal licensing bodies. BCV is also exploring the possibility of issuing a central bank digital currency: a revised organic law for the BCV was approved by the government in 2025 as part of an IMF extended credit facility agreement, and awaits final parliamentary passage.

Crypto License in Cabo Verde

Cabo Verde does not operate a dedicated crypto licensing regime. Law 30/X/2023 introduced a registration-based framework overseen by Banco de Cabo Verde, which imposes AML and counter-terrorism financing obligations on virtual asset service providers but does not create tiered license categories, activity-specific permits, or a formal authorization track comparable to those in jurisdictions such as the EU’s MiCA framework. Operators must register before commencing professional virtual asset activities; beyond registration and AML compliance, no domestic licensing product exists.

Registration Requirements Under Law 30/X/2023

Any entity wishing to provide virtual asset services professionally in Cabo Verde must register with BCV before commencing operations. The registration process requires demonstrated AML and KYC policies, data protection measures, and the technical capacity to carry out transaction monitoring and suspicious activity reporting. A commercial registration with the trade department, a tax identification number, and a municipal business license are also required. Minimum capital thresholds have been referenced in secondary legal sources, but BCV has not publicly confirmed specific figures. Operators should contact BCV directly at bcv.cv for current requirements. Law 30/X/2023 also extended the framework to cover digital banks, allowing BCV to set specific market access conditions and adjust requirements based on risk assessment.

AML Compliance and the UIF

The Unidade de Informação Financeira (UIF) is Cabo Verde’s Financial Intelligence Unit, established under Decree-Law 9/2012 and operating under the Ministry of Justice with its own budget and technical autonomy. VASPs are required to report suspicious transactions to the UIF and comply with customer due diligence standards that align with FATF recommendations. Cabo Verde is a member of GIABA, the FATF-style regional body for West Africa. A 2025 follow-up report published by FATF assessed Cabo Verde’s progress against its 2019 Mutual Evaluation Report: Recommendation 15, which covers new technologies including virtual assets, was downgraded from partially compliant to non-compliant. The country remains in enhanced follow-up, signalling that implementation of the 2023 law is ongoing rather than resolved. GIABA’s West African Compliance Summit is scheduled for July 2025 in Praia, further underscoring the regional focus on closing these gaps.

FATF Travel Rule and Implementation Status

The implementation status of the FATF Travel Rule in Cabo Verde has not been confirmed in publicly available sources. Given the non-compliant rating on Recommendation 15 in the 2025 FATF follow-up, operators should treat Travel Rule compliance as unresolved and seek direct confirmation from BCV before relying on any assumption that it has been fully transposed. The AGMVM signed a cooperation protocol with Portugal’s Comissão do Mercado de Valores Mobiliários (CMVM) in 2025, which provides for technical assistance in developing Cabo Verde’s regulatory framework, and may indirectly support progress on virtual asset standards over time.

Business Environment

Banking Relationships

Cabo Verde has seven commercial banks, including Banco Comercial do Atlântico and Banco BAI Cabo Verde. The country’s digital payments infrastructure is relatively advanced by regional standards, with approximately 80% internet penetration and card transactions accounting for a significant share of electronic payments. No commercial bank publicly advertises crypto-friendly services or has issued guidance on how it handles accounts for VASP businesses. Banks are expected to apply standard customer due diligence and may approach VASP clients with additional scrutiny in line with AML obligations.

Innovation Support

Cabo Verde has made a visible commitment to technology and fintech through two complementary initiatives. The Special Economic Zone for Technologies (ZEET) provides a regulatory sandbox for testing disruptive ICT solutions, explicitly including blockchain, cloud computing, and 5G technologies. Companies operating within ZEET benefit from a 2.5% corporate income tax rate, import duty exemptions, VAT exemptions, and access to preferential broadband pricing.

TechPark CV, funded primarily by the African Development Bank at a total project cost of approximately €51.85 million across two phases, was officially inaugurated on May 5, 2025, with facilities on both Santiago and Sao Vicente islands. The park began operations in November 2023 and by the time of its inauguration hosted 23 companies from seven countries across 52 office spaces, employing 311 professionals and recording a revenue increase of more than 4,300% since opening. It targets blockchain, artificial intelligence, fintech, and big data businesses. BCV’s ongoing fintech agenda and CBDC exploration signal that the central bank is actively tracking digital finance developments rather than taking a passive stance.

Market Characteristics

Adoption Patterns

Cabo Verde is a small archipelago economy of approximately 600,000 people with strong diaspora ties and a significant reliance on remittances. Tourism accounts for roughly 25% of GDP. High costs associated with international money transfers and, historically, cash-dependent transactions have driven interest in cryptocurrency as an alternative financial channel among consumers. No major domestic cryptocurrency exchange has been identified, and retail adoption remains informal rather than institutional. The country’s elevated digital payments penetration relative to comparable African markets provides a foundation for broader fintech and crypto adoption.

Effective July 1, 2025, the World Bank reclassified Cabo Verde from a lower-middle-income to an upper-middle-income country, reflecting a 7.3% GDP growth rate in 2024 and a 16.8% rise in GNI per capita. This reclassification may increase the country’s profile for international fintech investors evaluating registration jurisdictions in West Africa.

Industry Focus

The VASP registration framework under Law 30/X/2023 is structured in a way that can accommodate offshore fintech operators seeking a compliant base in West Africa. The combination of ZEET tax incentives, TechPark CV infrastructure, and BCV’s registration regime positions Cabo Verde as a candidate jurisdiction for blockchain businesses seeking a low-cost but regulated environment. The country is not part of the CFA franc zone, which has imposed some of the tightest crypto restrictions in Africa, and its escudo is pegged to the euro, providing monetary stability that may appeal to international operators.

Regulatory Evolution

Cabo Verde moved from no dedicated virtual asset framework to a FATF-aligned registration and AML regime in a single legislative step with Law 30/X/2023. The country is a member of GIABA and was subject to a 2019 mutual evaluation that identified deficiencies in AML and CFT supervision. A 2025 FATF follow-up report confirmed progress on some recommendations but downgraded the rating on Recommendation 15, covering new technologies and virtual assets, to non-compliant. These findings indicate that compliance gaps remain in the practical implementation of the 2023 law.

The trajectory is toward greater regulatory clarity. BCV’s emerging fintech agenda, the ZEET sandbox, and the proposed CBDC authorization all point to an environment becoming more structured over time. Businesses entering the Cabo Verde market should monitor BCV publications, GIABA follow-up reports, and the progress of the new BCV Organic Law through parliament for developments in registration requirements and compliance expectations.

• Banco de Cabo Verde (BCV): Central Bank and VASP Regulator
• AGMVM: Auditoria Geral do Mercado de Valores Mobiliários
• FATF: Cabo Verde 2025 Follow-Up Report
• GIABA: Cape Verde Member State Profile