Micronesia

Micronesia currently has no specific cryptocurrency legislation but uses the US dollar as its currency. The regulatory focus is on banking system soundness and stability, with no explicit crypto regulations mentioned.

Overview

StatusLegal
Risk Score25/100 (Low Risk)
Regionasia pacific
CurrencyUSD

Tax Information

Capital Gains (Personal)0% - no income tax on individuals
Capital Gains (Corporate)21% gross revenue tax
VAT on CryptoNo
Staking TaxN/A
Airdrop TaxN/A

No crypto-specific tax guidance available.

Licensing & Registration

RequiredYes
RegulatorFSM Banking Board
FrameworkBank Act of 1980 (as amended) under 29FSMC
Easeunknown

Licensing applies to banking institutions; no mention of crypto-specific licenses.

Enforcement Activity

Level: Moderate

No detailed enforcement information available

AML / KYC

KYC RequiredYes
Travel RuleNo
FATF MemberNo
FATF Statusunknown
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%
Infrastructurepoor

High electricity costs and limited renewable energy; infrastructure for mining is poor.

Geopolitical Risk

Stabilitystable
SanctionsNo
Corruption Index45/100
Banking Accessmoderate
Sanctions Program ActiveNo

Risk Factors

Micronesia is politically stable with moderate corruption and moderate ease of doing business. No international sanctions apply. Geographic isolation and limited infrastructure pose challenges for crypto business.

Sources

Frequently Asked Questions

Is cryptocurrency legal in Micronesia?

Micronesia currently has no specific cryptocurrency legislation but uses the US dollar as its currency. The regulatory focus is on banking system soundness and stability, with no explicit crypto regulations mentioned.

What is the FATF status of Micronesia?

Micronesia is classified by FATF as: unknown.

Are VASPs licensed in Micronesia?

Yes, licensing is required for VASPs.

What is the AML/KYC regime in Micronesia?

KYC is mandatory for crypto businesses.

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Last reviewed: 2026-09-13 · Data source: Soken Crypto Legal Map

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