Micronesia

Micronesia has no specific cryptocurrency regulation. Crypto activities (trading, mining) are legal by default due to absence of prohibitive legislation. FSM uses the US dollar, has no central bank, and the FSM Banking Board (bankingboard.gov.fm) regulates only traditional commercial banks. No licensing is required for crypto businesses.

Overview

Status	Legal
Risk Score	25/100 (Low Risk)
Region	asia pacific
Currency	USD

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

No crypto-specific tax guidance available.

Licensing & Registration

Required	No
Regulator	FSM Banking Board
Framework	No crypto legislation; uses USD
Ease	very_complex

Enforcement Activity

Level: Moderate

No detailed enforcement information available

AML / KYC

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

DeFi, Stablecoins & NFTs

Status: unregulated

Stablecoins

Status: unregulated

NFTs

Status: unregulated

Mining

Legal	Yes
Electricity Cost	$0.3/kWh
Renewable Energy	15%
Infrastructure	poor

Electricity costs are very high, infrastructure is limited, and renewable energy share is low. Mining viability is low due to high costs and poor infrastructure.

Geopolitical Risk

Stability	moderate
Sanctions	No
Corruption Index	35/100
Banking Access	restricted

Risk Factors

geographic isolation
limited infrastructure
economic dependence on aid

Micronesia is politically stable but faces challenges due to geographic isolation and limited infrastructure. No international sanctions apply. Banking access for crypto is restricted and ease of doing business is difficult.