---
type: country
domain: crypto-regulation
status: stable
tags: ["crypto-regulation", "asia_pacific", "apg", "unknown"]
aliases: ["FM", "FSM"]
created: 2026-09-13
updated: 2026-04-02
compile_into: ["[[country--micronesia]]"]
sources:
  - name: "https://www.fsmgov.org"
    url: "https://www.fsmgov.org"
    type: "official"
  - name: "FSM Code Title 54, Chapter 1: Taxation of Wages, Salaries, and Gross Revenues"
    url: "https://fsmlaw.org/fsm/code/title54/T54_Ch01.htm"
    type: "official"
  - name: "FSM Code Title 54, Chapter 3: Income Tax Regime for FSM Corporations"
    url: "https://fsmlaw.org/fsm/code/title54/T54_Ch03_2014.html"
    type: "official"
  - name: "FATF: Asia/Pacific Group on Money Laundering, members and observers"
    url: "https://www.fatf-gafi.org/en/countries/global-network/asia-pacific-group-on-money-laundering--apg-.html"
    type: "official"
  - name: "Code of the Federated States of Micronesia (index)"
    url: "https://fsmlaw.org/fsm/code/index.htm"
    type: "official"
---

#  Micronesia (FM): Crypto Regulation

> The Federated States of Micronesia have no crypto-specific law, licensing regime or ban, and the US dollar is the official currency. Banking is regulated under Title 29 of the FSM Code (Commercial Banking) by the FSM Banking Board, which has no crypto mandate. The FSM is an observer, not a member, of the Asia/Pacific Group on Money Laundering and has no published mutual evaluation covering virtual assets.

## Overview

| Field | Value |
|-------|-------|
| Status | unknown |
| Risk Score | 25/100 (Low Risk) |
| Enforcement Level | Moderate |
| Region | [[domain--asia-pacific|asia pacific]] |
| Currency | [[entity--usd|USD]] |

## Tax

| Type | Rate |
|------|------|
| Capital Gains (Personal) | No crypto-specific rules; no general personal income or capital gains tax; the national tax applies to wages and salaries at 6% on the first $11,000 and 10% above |
| Capital Gains (Corporate) | 21% income tax on major corporations; other businesses pay a 3% gross revenue tax on revenue above $10,000 |
| VAT on Crypto | No |
| Mining Tax | No specific guidance |
| Staking Tax | N/A |
| Airdrop Tax | N/A |

No crypto-specific tax guidance. The FSM taxes wages and salaries (6% and 10%) and business gross revenue (3% above $10,000), with a 21% income tax for major corporations; there is no general tax on individuals' investment gains.

## Licensing

| Field | Value |
|-------|-------|
| Required | Yes |
| Regulator | [[entity--fsm-banking-board|FSM Banking Board]] |
| Framework | No crypto framework (FSM Banking Board licenses banks under Title 29 of the FSM Code only) |
| Ease | unknown |
| Cost | N/A |
| Timeline | N/A months |

No crypto licensing regime exists. The FSM Banking Board licenses and supervises commercial banks only.

## AML / KYC

| Field | Value |
|-------|-------|
| KYC Required | Yes |
| Travel Rule | No |
| FATF Member | No |
| FATF Status | unknown |

## DeFi

**Status:** unregulated

## Stablecoins

**Status:** unregulated

## NFTs

**Status:** unregulated

## Mining

| Field | Value |
|-------|-------|
| Legal | Yes |
| Electricity Cost | $0.3/kWh |
| Renewable Energy | 15% |
| Climate | tropical |
| Infrastructure | poor |

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

## Geopolitics

| Field | Value |
|-------|-------|
| Stability | stable |
| Sanctions | No |
| Corruption Index | 45/100 |
| Ease of Business | moderate |
| Internet Freedom | partly_free |
| Banking Access | moderate |
| Sanctions Programs Active | No |

## Enforcement

No detailed enforcement information available

## CBDC Status: none

## FAQ

### Is cryptocurrency legal in Micronesia?

The Federated States of Micronesia have no crypto-specific law, licensing regime or ban, and the US dollar is the official currency. Banking is regulated under Title 29 of the FSM Code (Commercial Banking) by the FSM Banking Board, which has no crypto mandate. The FSM is an observer, not a member, of the Asia/Pacific Group on Money Laundering and has no published mutual evaluation covering virtual assets.

### 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.

---

*Data source: [Soken Crypto Legal Map](https://soken.dev/crypto-map/). Last reviewed: 2026-09-13.*

**Sources:**
- [https://www.fsmgov.org](https://www.fsmgov.org)
- [FSM Code Title 54, Chapter 1: Taxation of Wages, Salaries, and Gross Revenues](https://fsmlaw.org/fsm/code/title54/T54_Ch01.htm)
- [FSM Code Title 54, Chapter 3: Income Tax Regime for FSM Corporations](https://fsmlaw.org/fsm/code/title54/T54_Ch03_2014.html)
- [FATF: Asia/Pacific Group on Money Laundering, members and observers](https://www.fatf-gafi.org/en/countries/global-network/asia-pacific-group-on-money-laundering--apg-.html)
- [Code of the Federated States of Micronesia (index)](https://fsmlaw.org/fsm/code/index.htm)