Is Crypto Legal in Papua New Guinea?

Cryptocurrency is not recognized as legal tender in Papua New Guinea, according to the Bank of Papua New Guinea (Bank of PNG). The central bank has issued warnings about the risks of investing in cryptocurrencies and has emphasized that it does not issue or regulate virtual currencies such as Bitcoin, Ethereum, or Litecoin (1). Currently, there is no formal regulatory treatment for cryptocurrencies, placing them in a legal gray area where they are neither explicitly prohibited nor officially sanctioned (2).

The Bank of PNG outlined an Anti-Money Laundering and Counter Terrorist Financing (AML/CTF) regulatory regime in 2018 that applies to the general financial services industry, but it remains unclear whether these provisions extend to cryptocurrency exchange services operating in Papua New Guinea (1). Despite the lack of comprehensive regulation, the government has expressed strong support for blockchain technology applications, including plans announced in 2017 to establish a regulatory sandbox initiative and a special economic zone to encourage blockchain experimentation and usage (1).

"The Bank of PNG has supported trials of blockchain-enabled digital ID services to promote financial inclusion. The Papua New Guinean government has publicly expressed strong support for blockchain applications, including a special economic zone to encourage experimentation and usage in the country."

In January 2025, the Bank of Papua New Guinea presented the results of a proof-of-concept study on Central Bank Digital Currencies (CBDC) conducted in partnership with Soramitsu, Mitsubishi, JICA, and the Japanese Government. The study explored how a CBDC could be integrated into the existing payments system to enhance efficiency, strengthen security, and promote financial inclusion by providing accessible digital payment options for both urban and remote areas (2). While cryptocurrency taxation arrangements have not been formally established, the government's blockchain initiatives demonstrate recognition of the underlying technology's potential benefits, which could pave the way for more comprehensive future regulations (1).

Source:
https://jbba.scholasticahq.com/article/6817-toward-a-crypto-friendly-index-for-the-apec-region/attachment/17323.pdf
https://www.bankpng.gov.pg/publications/speeches/central-bank-digital-currency-cbdc-proof-concept

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