Is crypto legal in Nicaragua? Regulation & rules (2026)

Any legal entity offering exchange, transfer, custody, or issuance services relating to virtual assets must obtain a BCN licence and submit a comprehensive business plan, AML/CFT compliance programme, and cybersecurity policies before commencing operations.

Administrative Resolution GG-08-MAYO-2025-LASMF-DO (issued 23 May 2025) replaced the 2022 fintech regime, mandating Travel Rule compliance for all VASP-to-VASP transfers, use of blockchain-monitoring and sanctions-screening tools, and a 250-day post-licence window to begin operations.

Under Law No. 977 and BCN regulations, VASPs must report all virtual-asset transactions of USD 1,000 or more that appear unusual or suspicious to the BCN and the Financial Analysis Unit (UAF); banks supervised by SIBOIF face parallel obligations.

Law No. 1072 defines a virtual asset as a digital representation of value that can be traded, transferred, or used for payments or investments; the definition explicitly excludes digital representations of fiat currency, securities, and other regulated financial assets.

The May 2025 resolution introduced specific custody obligations for VASPs: cold-storage requirements, multi-signature key controls, accounting segregation of client assets, and verifiable proof-of-reserves disclosure.

Nicaragua applies a territorial tax regime; no dedicated crypto tax legislation exists. Virtual-asset income connected to Nicaragua-sourced activity is assessed under general income and business tax principles, while clearly foreign-sourced crypto income typically falls outside the local tax net.