---
type: country
domain: crypto-regulation
status: stable
tags: ["crypto-regulation", "asia_pacific", "apg", "legal"]
aliases: ["PW", "PLW"]
created: 2026-06-01
updated: 2026-04-02
compile_into: ["[[country--palau]]"]
sources:
  - name: "https://www.palaugov.pw"
    url: "https://www.palaugov.pw"
    type: "official"
---

#  Palau (PW) — Crypto Regulation

> Palau maintains a legal status for cryptocurrency with a Digital Residency Program and a crypto-linked national stablecoin initiative launched between 2022 and 2024. The regulatory environment supports crypto activities including mining.

## 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 |
| Capital Gains (Corporate) | 12% Business Profit Tax (BPT) on net income for PGST-registered businesses (effective Jan 1, 2023); 4% Gross Revenue Tax (GRT) remains for non-PGST registered businesses with annual gross income over $50,000 |
| VAT on Crypto | No |
| Mining Tax | No specific guidance |
| Staking Tax | 0% |
| Airdrop Tax | 0% |

No crypto-specific tax guidance available.

## Licensing

| Field | Value |
|-------|-------|
| Required | No |
| Regulator | Financial Institutions Commission (FIC) |
| Framework | No formal crypto licensing framework; FIC moratorium (since 2019) pending Digital Payment System Bill (proposed 2024-2025, not passed as of mid-2025); Digital Residency Program active (2022-present) |
| Ease | moderate |
| Cost | N/A |
| Timeline | N/A months |

## AML / KYC

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

## DeFi

**Status:** unregulated

## Stablecoins

**Status:** Legal

## NFTs

**Status:** unregulated

## Mining

| Field | Value |
|-------|-------|
| Legal | Yes |
| Electricity Cost | $0.25/kWh |
| Renewable Energy | 15% |
| Climate | tropical |
| Infrastructure | fair |

Mining is legal with relatively high electricity costs and moderate renewable energy usage. Infrastructure is fair given island geography.

## Geopolitics

| Field | Value |
|-------|-------|
| Stability | stable |
| Sanctions | No |
| Corruption Index | 55/100 |
| Ease of Business | moderate |
| Internet Freedom | free |
| Banking Access | moderate |

## Enforcement

No detailed enforcement information available

## CBDC Status: pilot

## FAQ

### Is cryptocurrency legal in Palau?

Palau maintains a legal status for cryptocurrency with a Digital Residency Program and a crypto-linked national stablecoin initiative launched between 2022 and 2024. The regulatory environment supports crypto activities including mining.

### What is the FATF status of Palau?

Palau is classified by FATF as: enhanced_follow_up.

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

KYC is mandatory for crypto businesses.

---

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

**Sources:**
- [https://www.palaugov.pw](https://www.palaugov.pw)