Marshall Islands and Cryptocurrency

Marshall Islands
Regulation of Digital Currencies: Cryptocurrency, Bitcoins, Blockchain Technology

The Marshall Islands has enacted legislation authorizing the launching of its own national cryptocurrency to serve as legal tender for citizens and businesses on the island.[718]  The currency will be known as the sovereign, or SOV, and will serve as “legal tender of the Marshall Islands for all debts, public charges, taxes, and dues.”[719]  It will circulate as legal tender in addition to the US dollar.[720] The SOV will be introduced in a forthcoming initial currency offering (ICO), after which residents of the Marshall Islands will be provided with the means to hold, save, and conduct transactions with the SOV, and merchants in the Marshall Islands will be given access to a computer application that will enable them to receive payments made with the SOV.[721]  The Minister of Finance will appoint a person or corporation to conduct the ICO.[722]  News reports indicate a financial technology company named Neema, which spearheaded the initiative, is likely to be awarded the contract to conduct the ICO.[723]

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:

Podcast:

The Freeman Law Project – Cryptocurrency Regulation and Taxation: A Brief Primer

Is cryptocurrency legal in the Marshall Islands?


Do you have Cryptocurrency or Blockchain Issues or questions?


Freeman Law is an innovative thought leader in the blockchain and cryptocurrency space. Blockchain and virtual currency activities take place in a rapidly evolving regulatory landscape. Freeman Law is dedicated to staying at the forefront as these emerging technologies continue to revolutionize social and economic activities.   Contact Freeman Law to Schedule a consultation or call (214) 984-3410 to discuss your cryptocurrency and blockchain technology concerns.


[719] Id. §§ 103(a), 104(1).

[720] Id. § 104(2).

[721] Id. §§ 104(4), 105(5).

[722] Id. § 109.

[723] Jonathan Keane, Inside the Marshall Islands’ Plans to Launch Its Own Legal Tender Cryptocurrency, The Next Web (Apr. 23, 2018), https://thenextweb.com/hardfork/2018/04/23/marshall-islands-cryptocurrency/, archived at https://perma.cc/3N52-H4C9.

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