Is crypto legal in Papua New Guinea? Rules & regulation (2026)

Legal framework

No dedicated crypto/digital-asset legislation; Bank of Papua New Guinea Act, Capital Market Act 2015, and Securities Commission Act 2015 provide partial coverage; Income Tax Act 2025 (in force 1 January 2026) introduces limited capital-gains tax regime; FATF Mutual Evaluation 2024 (APG) identifies AML/CFT deficiencies including gaps in VASP oversight

Status by sub-area

• Stablecoins

  None

  No stablecoin-specific regulatory framework exists in PNG. Stablecoins are not recognized as legal tender and the BPNG has issued no requirements for issuance, reserve backing, redemption rights, audits, or capital adequacy for stablecoin issuers.

• Exchanges / VASP

  None

  There is no national VASP or crypto-exchange licensing regime in Papua New Guinea. The FATF 2024 Mutual Evaluation identified this as a key AML/CFT deficiency, and PNG's action plan requires it to introduce risk-based VASP supervision.

  Still pending: PNG's action plan requires introducing risk-based VASP supervision

• Token Offerings

  Unclear

  No ICO, STO, or token-offering regulatory framework has been issued in PNG. The Capital Market Act 2015 theoretically covers crypto assets as tradeable instruments, but the SCPNG has promulgated no prospectus, disclosure, or investor-exemption rules specific to token sales; legal characterisation of tokens as securities remains untested.

  Still pending: Legal characterization of tokens as securities remains untested

• Custody

  None

  PNG has enacted no rules governing the custody of client crypto assets. There are no qualified-custodian designations, client-asset segregation mandates, proof-of-reserves requirements, or insurance obligations for any entity holding crypto on behalf of clients.

• DeFi

  None

  No PNG authority has issued regulatory guidance, warnings, or enforcement actions targeting decentralized finance protocols, front-ends, or DAOs. DeFi activity is entirely unaddressed by existing PNG law.

• Tax

  Partial

  PNG has no crypto-specific tax legislation or IRC guidance. The Income Tax Act 2025, operative from 1 January 2026, introduces a 15% CGT on disposal of 'taxable assets' (initially focused on extractive industries); crypto assets are not explicitly included or excluded. General income-tax principles administered by the Internal Revenue Commission may apply to profits from trading or mining, but there are no formal reporting obligations or staking/airdrop rules.

  Still pending: Crypto assets not explicitly included/excluded in CGT; no reporting rules for trading/mining/staking

Key points: crypto & digital assets in Papua New Guinea

1. 01Legal gray area, no ban, no formal framework

   No PNG statute explicitly bans cryptocurrency; the BPNG does not issue or regulate virtual currencies and has not granted them legal-tender status, leaving private crypto use in an unaddressed gray area. The BPNG issued a public risk warning in July 2018.

   bankpng.gov.pg freemanlaw.com

2. 02FATF increased monitoring, AML/CFT and VASP gaps

   The FATF/APG 2024 Mutual Evaluation Report found significant deficiencies in PNG's AML/CFT framework, including weak risk-based supervision of financial entities and virtual assets; PNG's FATF action plan requires it to develop VASP oversight and demonstrate increased ML/TF enforcement. PNG remained on the FATF increased-monitoring list as of February 2026.

   fatf-gafi.org fatf-gafi.org

3. 03Digital Kina CBDC proof of concept completed January 2025

   The BPNG, partnering with Japan's Soramitsu and Mitsubishi under Japanese government support, completed a Digital Kina CBDC proof of concept in January 2025, demonstrating real-time retail payments and cross-border remittances on Hyperledger Iroha 2; a broader rollout is contingent on addressing identified legal and regulatory gaps.

   bankpng.gov.pg bis.org

4. 04Capital Market Act 2015, theoretical partial coverage

   Parliament's 2015 securities-law reform created the SCPNG and the Capital Market Act 2015, which lists crypto assets among covered tradeable instruments; however, the SCPNG has issued no secondary rules, licensing requirements, or prospectus obligations specific to digital assets or token issuers.

   scpng.gov.pg ipa.gov.pg

5. 05SCPNG warns of fraudulent crypto schemes, no licensing enforcement

   The SCPNG has focused publicly on warning investors against unregistered entities, fake cryptocurrency platforms, and Ponzi schemes; it has not announced enforcement actions against licensed exchanges because no exchange licensing regime exists at the national level.

   scpng.gov.pg scpng.gov.pg

6. 06Income Tax Act 2025 introduces 15% CGT from 1 January 2026

   PNG's new Income Tax Act 2025, operative from 1 January 2026, introduces a 15% capital-gains tax on disposal of 'taxable assets' with initial focus on extractive-industry assets; crypto assets are not explicitly included or excluded and the Internal Revenue Commission has issued no specific guidance on cryptocurrency taxation.

   treasury.gov.pg pwc.com

Sources

1. 1.bankpng.gov.pg/publications/speeches/central-bank-digital-currency-cbdc-proof-concep
2. 2.fatf-gafi.org/en/publications/Mutualevaluations/Papua-New-Guinea-MER-APG-2024.html
3. 3.fatf-gafi.org/en/publications/High-risk-and-other-monitored-jurisdictions/increased
4. 4.scpng.gov.pg/capital-market-products/
5. 5.scpng.gov.pg/enforcement-actions/
6. 6.ipa.gov.pg/public/help.aspx?cn=RegulatingCapitalMarkets
7. 7.bis.org/review/r250731c.htm
8. 8.treasury.gov.pg/wp-content/uploads/2025/10/Income-Tax-Bill-2025.pdf
9. 9.pwc.com/pg/en/publications/assets/income-tax-act-2025.pdf
10. 10.irc.gov.pg/pages/taxes/businesses-and-employers/taxation-of-companies
11. 11.freemanlaw.com/cryptocurrency/papua-new-guinea/