Bolivia’s Crypto Revolution: How 2025 Regulations Are Shaking Up the Market

Bolivia flips the script on digital assets with bold new 2025 framework—banks scramble as decentralized finance gains legal footing.

The Andean U-Turn

Once a crypto-skeptic stronghold, La Paz now greenlights Bitcoin transactions under strict capital controls. Mining operations face 15% energy surcharges—solar-powered farms get tax breaks.

Central Bank's Double Game

While banning stablecoins for retail payments, Bolivia's mint quietly tests CBDC prototypes. Analysts call it 'financial schizophrenia'—traditional bankers rage-tweet about 'regulated anarchy.'

Street-Level Adoption

Black market peso rates nosedive as Telegram-based P2P trading explodes. Informal vendors now display QR codes next to coca leaves at La Paz markets.

The Fine Print Trap

New KYC rules require biometric scans for wallets over $1,000—privacy coins get outright banned. 'They want blockchain without the freedom,' quips a local dev facing extradition requests.

As Wall Street hedge funds suddenly 'discover' Bolivian blockchain startups, remember: every regulation creates loopholes—and somebody's getting paid to find them first.

As of 2025, Bolivia’s crypto regulations are evolving dramatically, from a historical ban to allow banks to operate crypto. While trading or owning stablecoins has been legalized in Bolivia, their use for business payments is not permitted, and they are not considered legal tender. Stablecoins transactions in Bolivia are only allowed via an authorized bank. 

Table of contents

• Crypto Regulations in Bolivia 2025
• What is the Bolivian government saying about crypto?
• Crypto License in Bolivia 2025
• Crypto tax in Bolivia 2025 
• Crypto adoption rate in Bolivia 2025
• Conclusion
• FAQs

Crypto Regulations in Bolivia 2025

• Executive Order 5399 bans the state-owned oil company from purchasing crypto to make payments. 

• After the rise of stablecoin in the crypto market, the oil company’s traders tried to use crypto for profit dollar trading within the company. However, this statement was later denied by the YPFB president, saying they are not using crypto assets. 

• The Bolivian government confirms recognition of disruptive technologies– blockchains, tokenized assets, virtual assets, and Virtual Asset Service Providers (VASPs). 

• Recognizes financial technological companies of the country, establishing a legal framework that enables startups and developing fintechs. 

• Laid the groundwork for the initial recognition of virtual assets and virtual asset service providers (VASP).

• Marking a milestone by lifting the old restrictions and recognizing fintech developing frameworks.

What is the Bolivian government saying about crypto?

• Public awareness: After lifting the crypto ban in the country, the Bolivian government launched public awareness campaigns to teach people about crypto basics, risks, and how digital assets work. 

• Consumer protection: The Central Bank of Bolivia (BCB) officials are drafting crypto regulations focusing on transparency, safety, and innovation. It aims to prevent crypto scams while balancing rules and technology. 

• USD-pegged stablecoins: In March 2025, the BCB utilized USD-pegged stablecoins for cross-border payments, remittances, and trading. It also traded crypto exchanges as a store of value in countries with volatile local currency. 

Crypto License in Bolivia 2025

Is there any crypto license in Bolivia? No, Bolivia does not have a specific crypto license. The government is currently prioritizing financial stability and capital preservation for digital assets. Hence, no license is required to conduct legal crypto activities in Bolivia. 

Crypto tax in Bolivia 2025 

• No capital gains tax: There is no specific tax legislation regarding crypto in Bolivia. While the standard taxes, like VAT/GST, are applied to goods or services purchased, crypto profits would likely be taxed under PIT (personal income tax). 

• CIT: Hence, mining, staking, and other crypto-related activities will be subject to 25% corporate income tax (CIT) as business income and individual earnings via crypto are not taxed in Bolivia.  

Crypto adoption rate in Bolivia 2025

• Dynamic growth– After lifting the crypto ban in 2024, Bolivia reported a 100% rise in virtual asset trading, becoming one of the most dynamic Latin American regions for cryptocurrency adoption. 

• Present adoption rate– Currently, the crypto adoption rate in Bolivia is 3.5%, with a continuously evolving state of digital assets in the country. In 2024, Bolivia reported around $15.6 million worth of assets traded between July and September. 

• Crypto holdings: The Bolivian government has not publicly disclosed its crypto holdings; the government’s focus remains on facilitating transactions rather than accumulating digital assets.  

Conclusion

By regulating cryptocurrency in the country, Bolivia aims to maintain stability and innovation in its fintech market. However, its ban on using crypto in energy transactions is to prevent the instability that the digital assets could bring to its energy sector. While the Bolivian government is addressing the risks associated with crypto, it is also crucial for them to recognize the potential benefits to harness the full potential of cryptocurrency in the country’s economy.

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FAQs

Yes, owning and trading stablecoins is legal in Bolivia as of 2025. While not legal tender, banks are now permitted to operate crypto transactions, a significant shift from a historical ban.

Bolivia has no specific capital gains tax on crypto for individuals. Profits from crypto-related business activities like mining and staking are subject to a 25% corporate income tax (CIT).

The Central Bank of Bolivia (BCB) is the primary body. It sets regulations, allows banks to handle crypto transactions through authorized electronic channels, and is involved in public awareness and consumer protection. The Financial System Supervisory Authority (ASFI) and the Financial Investigations Unit also play roles.