Guam and Cryptocurrency
Guam Cryptocurrency Laws
Regulation of Digital Currencies: Cryptocurrency, Bitcoins, Blockchain Technology
In 2014, the Conference of State Bank Supervisors (CSBS), the nationwide organization of banking regulators for the 50 states plus the District of Columbia, Guam, Puerto Rico, and the U.S. Virgin Islands, issued a draft model state regulatory framework for virtual currencies. The CSBS formed an Emerging Payments Task Force to evaluate payments developments and innovations, and to examine the intersection between emerging payments and its member’s roles as state financial regulators. [1]
As a result, CSBS developed its draft model regulatory framework which includes licensing, consumer protection, market stability, anti-money laundering, and cybersecurity requirements for state-licensed virtual currency firms. CSBS has considerable influence on individual states’ banking laws, however, it doesn’t have direct involvement in their laws. Its draft framework states:
“In the case of virtual currencies, licensing and supervision requirements should apply to entities engaged in the following virtual currency activities on behalf of another:
- Transmission
- Exchanging:
- Sovereign currency for virtual currency or virtual currency for sovereign currency.
- Virtual currency for virtual currency.
- Services that facilitate the third-party exchange, storage and/ or transmission of virtual currency (e.g. wallets, vaults, kiosks, merchant-acquirers, and payment processors).” [2]
Despite the orientation given by the CSBS, Guam has not enacted regulations or legislation specifically regulating digital currency yet. Thus, the legal status of cryptocurrency in Guam is controversial based on Guam’s cryptocurrency regulation report. The crypto-related activity in this U.S. Territory has a 1.6/10 safety rank, the main ranking factor for Madagascar is that 1 ICOs have forbidden Fiji dwellers to take part in their crowdfunding venture. Also, Cointobuy’s analysis tool has ranked Guam in the position 200 out of 249 countries in terms of cryptocurrency safety. [3]
P.S. Insights on Cryptocurrency Legal Issues
Most jurisdictions and authorities have yet to enact laws governing cryptocurrencies, meaning that, for most countries, the legality of crypto mining remains unclear.
Under the Financial Crimes Enforcement Network (FinCEN), crypto miners are considered money transmitters, so they may be subject to the laws that govern that activity. In Israel, for instance, crypto mining is treated as a business and is subject to corporate income tax. In India and elsewhere, regulatory uncertainty persists, although Canada and the United States are relatively friendly to crypto mining.
However, apart from jurisdictions that have specifically banned cryptocurrency-related activities, very few countries prohibit crypto mining.
Our Freeman Law Cryptocurrency Law Resource page provides a summary of the legal status of cryptocurrency for each country across the globe with statutory or regulatory provisions governing cryptocurrency. The globe below provides links to country-by-country summaries:
Is cryptocurrency legal in Guam?
Do you have questions about cryptocurrency, digital currencies, or blockchain technology? Freeman Law can help with digital currencies, tax planning, and tax compliance. Contact us now to schedule a consultation or call (214) 984-3410 to discuss your cryptocurrency and blockchain technology concerns.
[1] Regulation of Virtual Currencies: A Global Overview, (2015).
[2] Id.
[3] Cryptocurrency Analysis, “Ultimate crypto investment safety rankings”, (Jun. 2, 2021).
