Cook Islands

Cook Islands has no crypto-specific regulatory framework as of June 2026. The FSC (fsc.gov.ck) regulates traditional financial institutions only. A controversial Cryptocurrency (Ransomware Suppression) Bill 2025 — focused on ransomware asset recovery, not a licensing regime — was drafted but not tabled in parliament as of the verification date; it was preceded by a 'Tainted Cryptocurrency Recovery Bill 2023' that was withdrawn after Crown Law deemed it unconstitutional. In March 2026 the government established a Cryptocurrency Advisory Working Group (CAWG) to conduct a policy review. A separate Cybercrime Legislation Amendment Bill 2026 was passed in May 2026, modernising cybercrime laws (hacking, fraud, online bullying) aligned with the Budapest Convention — it does not create a crypto licensing regime. Cook Islands uses the NZD, has no central bank of its own, and there is no CBDC programme.

Overview

Statusunknown
Risk Score45/100 (Moderate Risk)
Regionasia pacific
CurrencyNZD

Tax Information

Capital Gains (Personal)0% - no capital gains tax; residents have a NZD 10,000 income tax exemption threshold and progressive rates of 25-30% on income above, but capital gains are explicitly exempt
Capital Gains (Corporate)20% CIT on domestic income; 0% for offshore/IBC companies not conducting business in Cook Islands
VAT on CryptoNo
Staking TaxN/A
Airdrop TaxN/A

No crypto-specific tax guidance available.

Licensing & Registration

RequiredNo
RegulatorFSC
FrameworkNone (no crypto-specific framework)
Easeunknown

Licensing applies to traditional financial institutions; no explicit mention of crypto-specific licenses.

Enforcement Activity

Level: Moderate

No detailed enforcement information available

AML / KYC

KYC RequiredYes
Travel RuleNo
FATF MemberNo
FATF Statusfsrb_only
FATF BodyAPG
Suspicious-Activity ReportingYes

DeFi, Stablecoins & NFTs

Status: unregulated

Stablecoins

Status: unregulated

NFTs

Status: unregulated

Mining

LegalYes
Electricity Cost$0.3/kWh
Renewable Energy15%
Infrastructurefair

Electricity costs are high compared to global averages; limited renewable energy share; infrastructure adequate but not advanced for large-scale mining.

Geopolitical Risk

Stabilitystable
SanctionsNo
Corruption Index55/100
Banking Accessmoderate

Risk Factors

Cook Islands is politically stable with no international sanctions. Moderate corruption and ease of business. Internet freedom is good, but banking access for crypto companies is moderate due to small financial sector.

Sources

Frequently Asked Questions

Is cryptocurrency legal in Cook Islands?

Cook Islands has no crypto-specific regulatory framework as of June 2026. The FSC (fsc.gov.ck) regulates traditional financial institutions only. A controversial Cryptocurrency (Ransomware Suppression) Bill 2025 — focused on ransomware asset recovery, not a licensing regime — was drafted but not tabled in parliament as of the verification date; it was preceded by a 'Tainted Cryptocurrency Recovery Bill 2023' that was withdrawn after Crown Law deemed it unconstitutional. In March 2026 the governm

What is the FATF status of Cook Islands?

Cook Islands is classified by FATF as: fsrb_only.

What is the AML/KYC regime in Cook Islands?

KYC is mandatory for crypto businesses.

Need help with Cook Islands crypto regulation?

Soken combines Web3 security engineering and crypto-legal counsel — two specialised tracks, one team. Pick the side that matches your need.

Legal & Corporate

Crypto Legal & Compliance

VASP licensing, jurisdiction analysis, AML/KYC, legal opinions, company registration and banking access.

Explore Legal Services →
IT & Security

Web3 Security & Development

Smart-contract audits, penetration testing, Web3 development, AI/LLM security audits.

Explore IT Services →

Last reviewed: 2026-06-01 · Data source: Soken Crypto Legal Map

← Back to Crypto Map