Is Crypto Legal in Mongolia?

Cryptocurrency is legal in Mongolia under the Law on Virtual Asset Service Provider, which was adopted by Parliament in December 2021 (1). The law aims to regulate the registration of legal entities that provide virtual asset services, monitor their activities, and determine their relevant rights and obligations (1). The Financial Regulatory Commission registers exchanges and platforms, though it is forbidden to issue coins alone in Mongolia as coin issuers must apply for registration at a listed exchange (1).

Virtual assets are defined as intangible digital representations of value that can be digitally traded or transferred and used for payment or investment purposes (2). The definition excludes digital representations of fiat currencies, securities, or electronic money issued on the basis of licenses granted by the Bank of Mongolia (2). Virtual asset service providers must be companies, not individuals, and must register with the Financial Regulatory Commission upon meeting requirements including having four-year business plans, internal control frameworks, and automated systems for monitoring suspicious transactions (1).

"The following activities shall be included in the provision of virtual asset services: exchange between virtual assets and fiat currencies, exchange between one or more other forms of convertible virtual assets, transfer of virtual assets, and safekeeping and administration of virtual assets."

The law requires VASPs to have their own capital equity set by the FRC, with capital not including assets registered abroad (2). Executive management must have no overdue debt, not have been found guilty of money laundering crimes, possess appropriate ethical reputation, and be specialized in finance, economics, law, information technology, or corporate governance (2). Virtual asset service providers must comply with the Law on Anti-money Laundering and Combatting the Financing of Terrorism, and contracts with customers must disclose that virtual currency is not legal tender and is not backed by the central bank (2).

Source:
https://www.elliptic.co/country-guides/mongolia
https://www.frc.mn/resource/frc/Document/2022/03/01/bayhjkjbmwefsdgg/LAW%20ON%20VIRTUAL%20ASSET%20SERVICE%20PROVIDER.pdf

Last updated: 19-10-2025 Disclaimer: This article does not provide legal advice. If you need legal advice, please contact an attorney directly.