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

Legal framework

Law No. 1072 (2021) amending Law No. 977 (AML/CFT); BCN Resolution CD-BCN-XXV-1-22 (April 2022) as amended by CD-BCN-XLIX-3-23 (August 2023); Administrative Resolution GG-08-MAYO-2025-LASMF-DO (May 2025); supervised by Banco Central de Nicaragua (BCN)

Status by sub-area

• Stablecoins

  Unclear

  Law No. 1072 explicitly excludes 'digital representations of fiat currency' from the virtual-asset definition, meaning fiat-backed stablecoins arguably fall outside the VASP licensing regime. No separate stablecoin issuance, reserve-backing, or redemption framework has been enacted.

  Still pending: Stablecoin reserve-backing and redemption framework not yet enacted

• Exchanges / VASP

  In force

  Crypto exchanges and all VASPs offering exchange, transfer, or custody of virtual assets must hold a BCN licence under Resolution CD-BCN-XXV-1-22 (2022) as overhauled by Administrative Resolution GG-08-MAYO-2025. Obligations include KYC/AML, Travel Rule, blockchain-monitoring tools, and cybersecurity standards.

• Token Offerings

  Partial

  The VASP framework covers entities that 'participate in and provide financial services related to the offering and sale of a virtual asset,' bringing token-sale intermediaries within BCN licensing scope. However, no dedicated ICO/STO prospectus, disclosure, or securities-law classification regime exists; treatment of tokens as securities is not explicitly codified.

  Still pending: ICO/STO prospectus and securities-classification regime not yet enacted

• Custody

  In force

  Custody of client virtual assets is an explicitly licensed VASP activity under the BCN framework. The May 2025 resolution added specific technical standards: cold storage, multi-signature key management, accounting segregation of client assets, and verifiable proof-of-reserves disclosure.

• DeFi

  Unclear

  Neither Law No. 1072, BCN Resolution CD-BCN-XXV-1-22, nor the May 2025 administrative resolution addresses decentralised finance protocols, DAO governance structures, or automated market makers. No specific DeFi enforcement guidance has been published by the BCN or UAF as of mid-2026.

  Still pending: DeFi protocols, DAOs, and AMMs not yet addressed in regulatory framework

• Tax

  Partial

  Nicaragua applies a territorial income-tax system with no dedicated crypto tax legislation; digital-asset gains or income from Nicaragua-sourced activity are assessed under general income and business tax rules. There are no specific provisions for staking, airdrops, or mining, and VAT treatment of crypto transactions has not been formally addressed.

  Still pending: Staking, airdrops, mining tax treatment and VAT rules not yet formalized

Key points: crypto & digital assets in Nicaragua

1. 01VASP Licensing (BCN)

   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.

   step.org consortiumlegal.com

2. 022025 Regulatory Overhaul

   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.

   dentons.com garciabodan.com

3. 03AML / Transaction Monitoring

   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.

   bcn.gob.ni swissinfo.ch

4. 04Virtual Asset Definition & Exclusions

   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.

   ariaslaw.com lexology.com

5. 05Custody & Proof of Reserves

   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.

   dentons.com consortiumlegal.com

6. 06Territorial Tax System

   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.

   taxsummaries.pwc.com centralamerica.com

Sources

1. 1.bcn.gob.ni/sites/default/files/marco_juridico_financiero/12_Ley_No_977_Ley_contr
2. 2.leybook.com/doc/31828
3. 3.step.org/industry-news/new-fintech-regulation-now-force-nicaragua
4. 4.consortiumlegal.com/en/2025/06/09/new-fintech-regulatory-framework-in-nicaragua/
5. 5.dentons.com/en/insights/articles/2025/june/16/nicaragua-strengthens-its-fintech
6. 6.garciabodan.com/en/fintech-regulation-nicaragua-bcn-publishes-guidelines/
7. 7.blplegal.com/nicaragua-advances-with-fintech-regulation/
8. 8.ariaslaw.com/es/noticia-in/nicaragua-opta-por-empezar-a-regular-los-activos-virtua
9. 9.taxsummaries.pwc.com/nicaragua/individual/taxes-on-personal-income
10. 10.swissinfo.ch/spa/nicaragua-vigilar%C3%A1-transacciones-virtuales-de-los-nicarag%C3
11. 11.lexology.com/library/detail.aspx?g=a7dd9b70-f057-489f-b0c4-b17685dd899a
12. 12.centralamerica.com/living/legal/crypto-taxes-in-central-america/