Crypto & Digital Assets · Micronesia
Is crypto legal in Micronesia? Regulation & rules (2026)
Micronesia shaded by its crypto & digital assets status
The Federated States of Micronesia has no dedicated cryptocurrency or digital assets law. The FSM uses the US dollar as its sole legal tender, has no central bank, and its Banking Board regulates only traditional deposit-taking institutions under the 1980 Banking Act. Crypto is neither explicitly authorised nor banned, placing it in a de facto regulatory vacuum with no licensing, consumer-protection, AML/CFT, or tax guidance specific to virtual assets.
Key points
As of 2025 there is no FSM statute, regulation, or formal guidance addressing cryptocurrency, virtual assets, VASPs, or token offerings. The FSM Code's Title 29 covers only conventional banking.
FSM law designates US coins and currency as its sole legal tender. FSM has no central bank; the Banking Board supervises two commercial banks (Bank of Guam and Bank of the FSM).
The 2025 Investment Climate Statement for FSM identifies no crypto or fintech regulatory framework, no stock or commodities exchanges, and notes a very limited financial sector with no restrictions on holding foreign investments.
FSM is assessed by the Asia/Pacific Group on Money Laundering (APG). No legislation implementing FATF Recommendation 15 (virtual assets) has been identified, meaning VASPs face no FSM-specific AML/CFT obligations.
FSM imposes no capital gains tax. Crypto trading gains would likely be untaxed at the national level, but no official guidance has been issued. Wage/salary income is taxed at 6–10%; investment income is generally exempt.
Global peer-to-peer platforms offer crypto services to FSM residents, indicating no de facto ban, but no domestic exchange or VASP holds an FSM licence because no licensing regime exists.
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Last verified 5/25/2026 · Orientation, not legal advice - verify against the primary sources linked above. Explore the full world map →