Is Crypto Legal in Tonga?

Cryptocurrency is not legal tender in Tonga and operates under strict regulatory restrictions (1). The National Reserve Bank of Tonga holds sole responsibility to issue currencies or legal tenders in the Kingdom under section 22 of the National Reserve Bank of Tonga Act (1). The bank has clarified that no business license has been issued to any entity in Tonga to offer crypto-assets such as Bitcoin for investment purposes (1).

The National Reserve Bank is responsible for managing the country's foreign exchange reserves and ensuring these are held in high-quality assets with low credit risk according to internationally recognized credit rating agencies (1). Any investment of external reserves in cryptocurrency is highly unlikely given its volatility and failure to meet minimum requirements for high-quality assets and low credit risks (1). Investment companies offering crypto-assets in Tonga would need to be licensed under relevant authorities as non-bank financial institutions subject to the bank's regulatory supervision under section 4A (k) of the NRBT Act (1).

"The National Reserve Bank of Tonga warns the general public that NO business licence has been issued to a business in Tonga to offer crypto-assets, such as Bitcoin. Any investment in Bitcoin or any crypto-assets available online or offshore is an individual financial decision and it will be at your own risk."

Tonga is currently working on strengthening its anti-money laundering and counter-terrorist financing regime through the Money Laundering and Proceeds of Crime Bill 2024, which includes provisions to prohibit unlicensed or unregistered virtual asset service providers (2). This reform will enable the AML/CTF framework to handle emerging technologies such as cryptocurrencies and non-fungible tokens under a more robust enforcement structure (2). Consideration of a Central Bank Digital Currency remains at an exploratory phase to determine suitability for a small island economy like Tonga (1).

Source:
https://tonga-gov.pt/en/the-national-reserve-bank-of-tonga-general-public-awareness-on-legal-tender-external-reserves-and-investment-on-bitcoin/
https://www.plntonga.to/single-post/tongan-anti-money-laundering-aml-reform-only-a-matter-of-time

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