Mozambique's Evolving Stance on Cryptocurrency Regulation

Cryptocurrency in Mozambique exists within a legal gray area. In January 2018, the Central Bank of Mozambique issued a warning to citizens about the risks associated with cryptocurrencies, particularly Bitcoin, citing concerns over their potential use in illicit activities such as money laundering and fraud. The bank emphasized that it does not regulate or supervise cryptocurrency transactions, as these digital assets are not issued by any central authority and lack legal standing in the country.

Despite the absence of formal recognition, Mozambique has initiated steps toward regulating the crypto sector. In August 2023, the government enacted Law No. 14/2023, focusing on anti-money laundering and counter-terrorism financing. This law mandates that all virtual asset service providers (VASPs) register with the Bank of Mozambique before commencing operations. Failure to comply can result in fines ranging from MZN 300,000 to MZN 10 million.

The prior registration of entities wishing to carry out activities related to virtual assets is now mandatory, under penalty of a misdemeanor (1).

Taxation of cryptocurrency in Mozambique remains under general tax laws, as there is no specific legislation addressing crypto-assets. Profits from crypto-related activities are taxed under the existing Personal and Corporate Income Tax Codes. Individuals engaging in crypto transactions that qualify as business activities must register with the Tax Authority and report their income accordingly.

In summary, while Mozambique has not fully embraced cryptocurrency, recent legislative measures indicate a move toward establishing a regulatory framework. The government's focus on anti-money laundering and the requirement for VASP registration reflect an effort to monitor and control the use of digital assets within its financial system.

Source:
(1) Freeman Law
(2) Afriwise

Last updated: 08-05-2025 Disclaimer: This article does not provide legal advice. If you need legal advice, please contact an attorney directly.