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Bolivia plans to create a regulatory and supervisory framework for virtual assets as part of economic reforms tied to a proposed $1.9 billion program with the International Monetary Fund.
The government says the framework is intended to curb improper capital outflows through crypto markets and strengthen financial resilience. It has not yet set an implementation deadline, named the regulator that would oversee the sector or detailed which crypto activities will require authorization.
Crypto Supervision Joins Bolivia’s $1.9B IMF Program
Bolivia’s Ministry of Economy included virtual-asset oversight in the economic policy commitments presented on Sept. 10 alongside reforms covering foreign exchange, financial supervision and anti-money laundering controls.
IMF staff and Bolivia reached a staff-level agreement in July on a 36-month Extended Fund Facility worth about $1.9 billion. The arrangement remains subject to IMF Executive Board approval and implementation of agreed prior actions.
Bolivia’s Chamber of Deputies approved legislation authorizing the financing on Sept. 17 and sent the bill to the Senate for review.
Crypto Activity Topped $135M After 2024 Restrictions Were Lifted
Bolivia removed restrictions on the use of electronic payment instruments for virtual-asset transactions in June 2024. Crypto activity expanded quickly after the change. The IMF reported that transaction volume exceeded $135 million during the first six months after liberalization.
The IMF has previously recommended stronger oversight of bank exposure to crypto entities, regulation of service providers and consumer safeguards. It also warned that crypto assets could be used to bypass capital-flow management measures.
The new framework has not yet specified limits on stablecoin use, cross-border transfers or conversion between crypto and foreign currency.
Bolivia Remains Under FATF Increased Monitoring
Bolivia remains on the Financial Action Task Force’s list of jurisdictions under increased monitoring. FATF said in June that the country still needed to strengthen money-laundering investigations, risk-based supervision of several non-financial sectors and enforcement of beneficial ownership requirements.
Bolivia’s IMF-linked reform package also calls for stronger anti-money laundering and counter-terrorism financing controls alongside virtual-asset supervision.
The crypto framework remains at the policy-commitment stage. Bolivia has yet to publish detailed licensing, reporting or supervisory rules, while the $1.9 billion IMF arrangement still requires further domestic and IMF approvals.
