By 2025, Bolivia officially changed its position as the country with one of the most restrictive crypto bans in Latin America to the regulated and Crypto Regulations in Bolivia structured one. With the looming inflation and shortage of dollars alongside the increased popularity of digital assets by the population, the government has introduced a legislative framework that ensures innovation, improved inclusion, and financial stability.
From Ban to Regulated Ecosystem
- Ban lifted: On June 26, 2024, Bolivia repealed its long-standing crypto prohibition via Board Resolution No. 082/2024, permitting crypto transactions through authorized electronic means.
Reuters+12Cointelegraph+12MEXC+12 - Regulatory foundation:
- April 2025, Financial Investigations Unit issued Resolution 019/2025, formally recognizing Virtual Asset Service Providers (VASPs).
- May 7, 2025, Supreme Decree No. 5384 created a regulatory playground, recognizing fintechs, tokenized assets, VASPs, and introducing a regulatory sandbox.
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Bolivia’s Regulatory Framework in 2025
Legal Status & Usage
- Crypto ownership and trading are legal under regulated electronic systems, but cryptocurrency is not legal tender.
- Banks and energy firms (like YPFB) operate under strict rules and limited permission frameworks.
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Taxation Rules
- No capital gains tax for individuals.
- Business or mining-related crypto income is taxed at the standard 25% corporate rate.
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Crypto Adoption Surge & Economic Drivers
- Volume boom: From June 2024 to June 2025, crypto transactions skyrocketed 530%, rising from $46.5M to $294M, with May 2025 alone reaching $68M. Total volume since legalization soared to $430M, across ~10,000 operations.
CryptoNews+7Reuters+7AInvest+7 - Catalyst of an economic crisis: Inflation rates have not been this high in decades, the boliviano is depreciating, there is no liquidity in terms of dollars, and fuel becomes scarce, increasing the usage of crypto out on the streets and in the small businesses as a form of payments and saving options (notably USDT and BTC).
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Strategic Alignment with El Salvador
- In July 2025, Bolivia signed a memorandum of understanding with El Salvador’s digital asset regulator (CNAD).
- This partnership aims to co-develop crypto policies, risk models, AI regulatory tools, and promote financial inclusion.
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Regulatory Bodies & Oversight
- Banco Central de Bolivia (BCB) oversees monetary policy and digital asset recognition.
- Financial Investigations Unit & ASFI (Financial System Supervisory Authority) will implement and enforce fintech and AML/KYC license requirements for crypto firms.
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Implications for Stakeholders
Individuals & Traders
- Can legally hold and trade crypto via licit platforms.
- No personal capital gains tax; however, income from crypto-related businesses is taxed at 25%.
Startups, Exchanges & Fintechs
- Must register as fintech companies or VASPs under the new decrees.
- Eligible to operate in a regulatory sandbox, enabling legal innovation.
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State-Backed Entities (e.g., YPFB)
- Authorized to use crypto (e.g., stablecoins) for fuel imports—but internal usage remains restricted.
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What Lies Ahead
- The Unified execution of fintech license regime via Decree 5384.
- Additional formulation of policy to support issuance of stablecoins, cross-border payments, and possible tax treatment.
- Enhanced financial literacy campaigns launching across all nine departments.
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Conclusion
Bolivia’s shift from a crypto ban to pioneering regulated adoption within a year is remarkable. With rising usage amid economic hardships and structured legislative reforms, the country is balancing digital asset innovation with fiscal oversight and financial inclusion.
Despite risks from volatility and infrastructure constraints, Bolivia’s regulated framework positions it as a potential Latin American crypto growth market in 2025.