Quick Answer
Cryptocurrency is not illegal but is banned for banks.
- No specific laws regulate personal cryptocurrency use or ownership.
- A regional directive bans banks from all cryptocurrency-related transactions.
Legal Status of Crypto in Cameroon
Cryptocurrency in Cameroon occupies a complex legal gray area, as no national law explicitly legalizes or prohibits its use by individuals. This ambiguity is contrasted by a strict regional directive from the Bank of the Central African States (BEAC) and the Central African Banking Commission (COBAC), which prohibits banks and other financial institutions from engaging in any cryptocurrency transactions. Consequently, while personal ownership isn't outlawed, any related financial activity is heavily restricted and falls under the general anti-money laundering (AML) oversight of authorities like the National Agency for Financial Investigation (ANIF).
Current Regulations
Currently, Cameroon has no specific national laws governing the use of cryptocurrency, creating a legal vacuum for individual users. While a broader regional framework for electronic money exists, it does not directly address digital assets like Bitcoin. The most significant regulation is a May 2022 directive from the Central African Banking Commission (COBAC), which prohibits banks, microfinance institutions, and payment providers from facilitating any cryptocurrency-related transactions. This ban effectively isolates the crypto market from the country's formal financial system, even though personal ownership itself is not explicitly outlawed.
Regulatory Authorities
While no single body is dedicated to crypto, several regional and national authorities oversee the financial landscape and would enforce any related regulations.
- Bank of the Central African States (BEAC): As the central bank for the CEMAC region, BEAC is responsible for monetary policy, financial stability, and regulating payment systems. It enforces the exclusive use of the CFA franc and has banned financial institutions from engaging with cryptocurrencies to protect the regional currency.
- Central African Banking Commission (COBAC): This regional body supervises banks and financial institutions, issuing prudential standards and AML/CFT directives. COBAC explicitly banned institutions from facilitating crypto transactions and requires them to report any such activity.
- National Agency for Financial Investigation (ANIF): As Cameroon's national Financial Intelligence Unit, ANIF is responsible for combating money laundering and the financing of terrorism. It receives and analyzes suspicious transaction reports from financial institutions, which would include any detected crypto-related activities.
Historical Context
Cameroon’s crypto regulatory journey has been one of inaction followed by a decisive regional ban. For years, the country lacked specific crypto laws, though the government showed early interest by testing a digital currency in 2015. This regulatory vacuum persisted until a major policy shift in May 2022. Spurred by regional events, the Central African Banking Commission (COBAC) issued a directive prohibiting all banks and financial institutions in the CEMAC region from engaging in or facilitating cryptocurrency transactions. This move effectively isolated the crypto market from the formal financial system, aiming to safeguard financial stability while creating major obstacles for local crypto adoption.
Compliance Requirements for Businesses in Cameroon
Businesses operating in Cameroon must navigate a stringent regulatory environment to prevent financial crime. Key compliance obligations are rooted in both regional CEMAC directives and national laws, requiring a proactive approach to risk management. Essential rules include:
- Anti-Money Laundering (AML) Checks: Firms are required to implement comprehensive AML procedures, which include ongoing transaction monitoring to detect unusual activity and reporting any suspicious findings to the National Financial Investigation Agency (ANIF). According to Cameroon AML compliance guidelines, Enhanced Due Diligence (EDD) is necessary for high-risk clients, such as Politically Exposed Persons (PEPs) or those in the extractive industries.
- Know Your Customer (KYC) Requirements: A cornerstone of compliance is robust KYC. Businesses must identify and verify the identity of all customers and their beneficial owners, typically defined as individuals with at least 25% ownership or effective control. As part of navigating banking regulations, companies must provide this detailed information to open business accounts and keep it updated. All identification data and transaction records must be maintained for at least 10 years.
- Mandatory Reporting and Screening: Beyond general monitoring, specific actions are mandated. Businesses must file Suspicious Transaction Reports (STRs) with ANIF promptly—often within 48 hours of detection. Additionally, Cash Transaction Reports (CTRs) are required for transactions exceeding certain thresholds, such as 5 million XAF. Firms must also screen all customers and transactions against national and international sanctions lists and establish formal, written AML policies for staff.
Why this matters for Cross-Border Payments
For businesses engaged in cross-border trade with partners in countries like India, Cameroon's stringent financial regulations create significant operational hurdles. The complete ban on cryptocurrency transactions by financial institutions eliminates a modern, efficient payment rail, forcing reliance on slower and more expensive traditional banking systems. This, coupled with rigorous AML and KYC compliance, introduces potential delays and administrative burdens that can complicate supply chain payments, hinder foreign investment, and increase the overall cost of doing business.
How Lightspark Enables Compliant Crypto-Native Payments
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This infrastructure directly addresses the pain points of slow, costly cross-border payments. For regulated institutions facing strict rules from bodies like COBAC, Lightspark offers a compliant-ready framework. Features like audit-ready reporting, flexible custody options, and integrated screening tools facilitate adherence to AML/KYC requirements, enabling businesses to leverage modern payment rails while managing their regulatory obligations.
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Notice: This article is provided for informational purposes only and does not constitute legal advice.
Sources
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- Fuje, Habtamu, et al. “Africa’s Growing Crypto Market Needs Better Regulations.” IMF Blog, International Monetary Fund, 22 Nov. 2022, www.imf.org/en/Blogs/Articles/2022/11/22/africas-growing-crypto-market-needs-better-regulations.
- Mbanda, Epanty. “Cameroon Virtual Currencies Comparative Guide - All Chapters.” Mondaq, www.mondaq.com/guides/results/23/138/all/cameroon-virtual-currencies.
- Mbanda, Epanty. “Regulation of Cryptocurrency in the CEMAC Region: Key Updates and Implications.” 4M Legal & Tax, 7 Dec. 2023, 4mlegaltax.com/regulation-of-cryptocurrency-in-the-cemac/.
- “Navigating Banking Regulations for Startups in Cameroon: Your Complete Guide.” Nico Halle & Co. Law Firm, 1 Aug. 2025, www.hallelaw.com/navigating-banking-regulations-for-startups-in-cameroon-your-complete-guide/.
