Is crypto legal in Brunei? Rules & regulation (2026)

Legal framework

No dedicated crypto statute. Brunei Darussalam Central Bank (BDCB), formerly AMBD, supervises the financial system under the Brunei Darussalam Central Bank Order 2010; BDCB has publicly stated it is developing a legal and regulatory framework for the licensing and supervision of cryptocurrencies and related activities. AML/CFT guidelines for financial institutions took effect 1 April 2024.

Status by sub-area

• Stablecoins

  None

  Brunei has no stablecoin-specific regime. There are no issuance/authorization rules, reserve-backing, redemption-rights, attestation or capital requirements for stablecoin issuers, and no issuer restrictions in force.

• Exchanges / VASP

  Proposed

  There is no in-force licensing or registration regime for crypto exchanges or VASPs. BDCB has publicly stated it is developing a framework for the licensing and supervision of cryptocurrencies and related activities, but no licensing requirement, capital, conduct or local-presence rules are yet in effect.

  Still pending: BDCB developing licensing and supervision framework for crypto activities

• Token Offerings

  None

  Brunei has no specific regime classifying token sales, ICOs or STOs, and no crypto-specific prospectus/disclosure or securities-law treatment has been published for digital tokens.

• Custody

  None

  No rules govern the custody of client crypto — there are no segregation, qualified-custodian, safeguarding, proof-of-reserves or insurance requirements in force.

• DeFi

  None

  Brunei has issued no regulatory stance on decentralized finance; DeFi protocols, front-ends and DAOs are not specifically addressed and there is no published enforcement posture.

• Tax

  Partial

  Brunei has no crypto-specific tax rules, but its general tax system is highly favourable: no personal income tax and no capital-gains tax mean individual crypto gains are effectively untaxed. There is no VAT/GST in Brunei; corporate income tax (18.5%) can apply to crypto-related business profits.

Key points: crypto & digital assets in Brunei

1. 01Not legal tender, not regulated

   BDCB states cryptocurrencies such as Bitcoin and Ether are not legal tender in Brunei Darussalam and are not regulated by the central bank; the public is urged to exercise extreme caution with privately issued cryptocurrencies.

   cms.bdcb.gov.bn

2. 02No outright ban

   Brunei has not enacted legislation prohibiting the use, holding or trading of cryptocurrencies; there is no specific law criminalizing crypto activity, so it sits in an unregulated-but-not-banned space.

   cms.bdcb.gov.bn freemanlaw.com

3. 03Licensing framework under development

   BDCB has publicly stated it is developing an appropriate legal and regulatory framework for the licensing and supervision of cryptocurrencies and related activities (including virtual-asset service providers).

   cms.bdcb.gov.bn

4. 04Risk and scam warnings

   BDCB has issued repeated advisories on the risks of cryptocurrencies, crypto mining and related scams, citing volatility, anonymity, unknown-jurisdiction platforms and misuse for illicit activity, and maintains an Alert List of unauthorised entities.

   cms.bdcb.gov.bn bdcb.gov.bn

5. 05AML/CFT guidelines effective 2024

   BDCB's Guidelines for Financial Institutions took effect 1 April 2024, reflecting Brunei's broader AML/CFT obligations consistent with FATF standards, though a dedicated VASP licensing regime is not yet in force.

   cms.bdcb.gov.bn

6. 06Favourable general tax environment

   Brunei imposes no personal income tax and no capital-gains tax on individuals, so crypto gains for individuals are effectively untaxed; there is no crypto-specific tax law, though the 18.5% corporate income tax can apply to business profits.

   taxsummaries.pwc.com taxsummaries.pwc.com

Timeline of decisions

1. 19 Nov 2025Guidance · official
   Brunei Hosts UNODC 8th Southeast Asia Cryptocurrencies Working Group Meeting

   Brunei Darussalam co-hosted the 8th Southeast Asia Cryptocurrencies Working Group Meeting in Bandar Seri Begawan jointly with UNODC, bringing together technical experts to demonstrate blockchain analytics tools for tracing and seizing digital assets linked to crime. The event followed Brunei's signature on 25 October 2025 of the UN Convention against Cybercrime, which establishes an international framework for evidence sharing and asset recovery.

   UNODC

2. 2 May 2025Enforcement
   Authorities Bust Crypto Mining Operation for Electricity Theft

   Brunei regulators and law enforcement shut down another illicit crypto mining facility caught using unauthorized electrical connections, prosecuted under the Electricity Act rather than any dedicated crypto statute. The recurring enforcement pattern confirms that mining remains operationally suppressed through ancillary law, not specific crypto prohibition.

   Borneo Bulletin

3. 1 Apr 2024Guidance · official
   BDCB Issues First Supervisory Guidelines for Financial Institutions on Virtual Assets

   The Brunei Darussalam Central Bank (BDCB) issued Guidelines No. TRS/G-4/2024/1 effective 1 April 2024, providing the first formal BDCB-issued supervisory guidance explicitly addressing financial institutions' exposure to virtual assets. While not a comprehensive VASP licensing regime, the guidelines impose risk-management and due-diligence expectations on supervised banks and financial institutions touching virtual assets.

   Brunei Darussalam Central Bank (BDCB)

4. 3 Aug 2023Guidance
   DES Issues Stern Public Warning over Electricity Theft for Crypto Mining

   The Department of Electrical Services and partner agencies issued a formal public warning that illegally diverting electricity for crypto mining carries criminal penalties under the Electricity Act, including fines and imprisonment. The warning reflected escalating enforcement pressure but still stopped short of any dedicated crypto regulatory action.

   Borneo Bulletin

5. 7 Jan 2023Enforcement
   Police Shut Down Two Illegal Crypto Block-Reward Mining Facilities

   A joint 30-person operation by the Royal Brunei Police Force (RBPF), Department of Electrical Services (DES), and AENBD raided two sites at Kampong Menglait and Kampong Serasa, seizing mining rigs running on stolen electricity. Suspects faced up to three years imprisonment and fines under the Electricity Act, underscoring that mining is suppressed in practice with no legal avenue to operate.

   CoinGeek / Borneo Bulletin

6. 1 Jan 2023Decision · official
   APG Mutual Evaluation Report Rates Brunei Non-Compliant on Virtual Assets

   The Asia/Pacific Group on Money Laundering (APG) published its Mutual Evaluation Report on Brunei (on-site visit November-December 2022), finding the virtual asset sector entirely unregulated with no locally incorporated VASPs and material gaps in FATF Recommendation 15 compliance. The report called for urgent enactment of a VASP licensing and supervision framework.

   FATF / APG

7. 1 Dec 2022Enforcement
   First Known Joint Raids on Crypto Mining Premises for Unauthorized Electricity Use

   A DES-led joint operation raided five premises at Kampong Melabau and Kampong Serusop, uncovering cryptocurrency mining rigs connected to the grid illegally. These were Brunei's first publicly reported enforcement actions against crypto mining, setting the template of electricity-law prosecution that has continued through 2025.

   Borneo Bulletin

8. 1 Dec 2017Guidance · official
   AMBD Issues Brunei's First Official Warning: Crypto Not Legal Tender, Not Regulated

   The Autoriti Monetari Brunei Darussalam (AMBD) published Brunei's founding policy statement on cryptocurrencies, declaring that Bitcoin and other privately-issued digital currencies are not legal tender, are not regulated by AMBD, and carry a high risk of loss without regulatory protection. This cautious non-prohibition stance, neither banning nor recognising crypto, became the bedrock of Brunei's policy for nearly a decade.

   AMBD (now BDCB)

Sources

1. 1.cms.bdcb.gov.bn/storage/uploads/publications/17089439781708640.pdf
2. 2.bdcb.gov.bn/
3. 3.bdcb.gov.bn/publications/details?id=01kjs6ke9tg023q4eqgw888566
4. 4.cms.bdcb.gov.bn/storage/uploads/regulatories/17138598614099570.pdf
5. 5.taxsummaries.pwc.com/brunei-darussalam/individual/taxes-on-personal-income
6. 6.taxsummaries.pwc.com/brunei-darussalam/individual/other-taxes
7. 7.freemanlaw.com/cryptocurrency/brunei/