---
type: country
domain: crypto-regulation
status: stable
tags: ["crypto-regulation", "asia_pacific", "apg", "legal"]
aliases: ["FM", "FSM"]
created: 2026-06-01
updated: 2026-04-02
compile_into: ["[[country--micronesia]]"]
sources:
  - name: "https://www.fsmgov.org"
    url: "https://www.fsmgov.org"
    type: "official"
---

#  Micronesia (FM) — Crypto Regulation

> 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

| Field | Value |
|-------|-------|
| Status | Legal |
| 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) | 0% - no income tax on individuals |
| Capital Gains (Corporate) | 21% gross revenue tax |
| VAT on Crypto | No |
| Mining Tax | No specific guidance |
| Staking Tax | N/A |
| Airdrop Tax | N/A |

No crypto-specific tax guidance available.

## Licensing

| Field | Value |
|-------|-------|
| Required | No |
| Regulator | [[entity--fsm-banking-board|FSM Banking Board]] |
| Framework | No crypto legislation; uses USD |
| Ease | very_complex |
| Cost | N/A |
| Timeline | N/A months |

## AML / KYC

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

## 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 |

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.

## Geopolitics

| Field | Value |
|-------|-------|
| Stability | moderate |
| Sanctions | No |
| Corruption Index | 35/100 |
| Ease of Business | difficult |
| Internet Freedom | partly_free |
| Banking Access | restricted |

## Enforcement

No detailed enforcement information available

## CBDC Status: none

## FAQ

### Is cryptocurrency legal in 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.

### What is the FATF status of Micronesia?

Micronesia is classified by FATF as: non_compliant.

### What is the AML/KYC regime in Micronesia?

KYC is not universally mandated.

---

*Data source: [Soken Crypto Legal Map](https://soken.dev/crypto-map/). Last reviewed: 2026-06-01.*

**Sources:**
- [https://www.fsmgov.org](https://www.fsmgov.org)