Crypto Regulation in Micronesia

Unknown

Tax Information

Capital Gains (Personal)
0% - no income tax on individuals
Capital Gains (Corporate)
21% gross revenue tax
VAT on Crypto
No
Staking Tax
N/A
Airdrop Tax
N/A
Mining Tax
--

Licensing & Registration

License Required
No
Regulator
FSM Banking Board (Federated States of Micronesia Banking Board)
Framework
No crypto legislation; uses USD
License Types
--
Estimated Cost (USD)
N/A
Timeline
N/A months
Ease of Licensing
Very Complex

AML / KYC

KYC Required
No
Travel Rule
No
FATF Member
--
FATF Status
--
Suspicious Activity Reporting
--

Mining

Mining Legal
No
Status
Unknown
Electricity Cost ($/kWh)
$0.3
Renewable Energy
20%
Climate
Tropical
Infrastructure
Poor
Tax on Mining Income
21% gross revenue tax
Notes
Mining legal status is unclear. Proceed with caution and seek legal advice.

DeFi, Stablecoins & NFTs

DeFi: unregulatedStablecoins: unregulatedNFTs: unregulatedCBDC: none

Soken Services

Banking
Difficulty: Very Hard | Crypto-friendly banks: none listed
Min. Deposit
$10,000
Fiat Rails
SWIFT
Card Payments
Visa, Mastercard

Sources

FSM Government
low

Frequently Asked Questions

Is crypto legal in Micronesia?
Cryptocurrency is currently classified as "Unknown" in Micronesia.
What is the crypto tax rate in Micronesia?
In Micronesia, the personal capital gains tax on crypto is 0% - no income tax on individuals, and the corporate tax rate is 21% gross revenue tax.
Do I need a crypto license in Micronesia?
No, Micronesia does not currently require a specific crypto license, though other financial regulations may apply.
Is crypto mining legal in Micronesia?
No, crypto mining is currently banned or illegal in Micronesia. Mining legal status is unclear. Proceed with caution and seek legal advice.
What are the AML/KYC requirements for crypto in Micronesia?
Micronesia does not currently mandate KYC for crypto businesses, though this may change.