Palau

Palau maintains a legal status for cryptocurrency with a Digital Residency Program and a crypto-linked national stablecoin initiative launched between 2022 and 2024. The regulatory environment supports crypto activities including mining.

Overview

StatusLegal
Risk Score30/100 (Moderate Risk)
Regionasia pacific
CurrencyUSD

Tax

Capital Gains (Personal)0% - no income tax
Capital Gains (Corporate)4% gross revenue tax
VAT on CryptoNo
Staking Tax0%
Airdrop Tax0%

No crypto-specific tax guidance available.

Licensing

RequiredNo
RegulatorMinistry of Finance
FrameworkDigital Residency Program with crypto-linked national stablecoin initiative (2022-2024)
Easemoderate
CostN/A

DeFi

Status: unregulated

Stablecoins

Status: Legal

NFTs

Status: unregulated

Mining

LegalYes
Electricity$0.25/kWh
Renewable15%
Infrastructurefair

Mining is legal with relatively high electricity costs and moderate renewable energy usage. Infrastructure is fair given island geography.

Geopolitics

Stabilitystable
SanctionsNo
Corruption Index55/100
Banking Accessmoderate

Last reviewed: 2026-04-13 · Data source: Soken Crypto Legal Map

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