Nicaragua

Legal

Virtual Asset · Partial

ExchangesCustodiansVirtual Asset Service ProvidersBanks

Comprehensive framework Unregulated CASP / VASP regime Approved · 2023 Licensing Approved · 2023 AML / CFT Approved · 2021 Stablecoins Unregulated · Unregulated CBDC N/A Consumer protection Unregulated Travel rule Partial Advertising rules No Taxation Unclear

Summary

Nicaragua regulates virtual assets primarily for AML/CFT purposes. Law No. 1072 (in force May 2021) amended AML Law No. 977 to bring Virtual Asset Service Providers (PSAVs) within scope, designating the Financial Analysis Unit (UAF) for AML supervision and the Central Bank of Nicaragua (BCN) for licensing. The BCN's Regulation of Financial Technology Providers and Virtual Asset Service Providers entered into force in 2023, creating a PSAV license covering exchange, custody, administration, and transfer, with KYC and periodic reporting. The cordoba remains the only legal tender; there is no comprehensive market-conduct framework.

Timeline

May 2021: Law 1072 amends AML Law 977 to cover PSAVs. 2023: BCN regulation on fintech payment providers and PSAVs enters into force, establishing the PSAV license.