Belize is attracting more expats and remote workers, many of whom rely on crypto to manage their finances abroad. Before assuming you can spend or convert crypto here here, it is important to know what is allowed under the new virtual asset rules in Belize.
Cryptocurrency use continues to grow in Central America and many expats, investors, and digital nomads are curious about how practical crypto is in Belize. Belize allows individuals to hold and use cryptocurrency, but business activities involving crypto are tightly restricted under the Financial Services Commission Act 2023. These rules are intended to manage financial risk and align the country with international standards, particularly in anti money laundering compliance. For anyone considering a move to Belize or planning to rely on crypto during their time here, it is important to understand what the current laws mean in practice.
Belize’s Approach to Cryptocurrency Today
Crypto is not legal tender in Belize. The Belize dollar is the only official currency for everyday transactions, so businesses are not required to accept Bitcoin or any other digital asset as payment.
However, the government recognizes crypto as a category of “virtual assets” and has created a regulatory framework to govern how these assets can be used within the financial system. Belize has not banned private ownership or personal crypto use. The restrictions apply to business activities involving virtual assets while the licensing regime is still being developed.
What Counts as a Virtual Asset
Under Act No. 8 of 2023, a virtual asset is any digital representation of value that can be traded, transferred, or used for payment or investment. This definition includes:
- Cryptocurrencies such as Bitcoin, Ethereum, and XRP
- Stablecoins like USDT and USDC
- Tokenized assets
- NFTs
- Some in game currencies that can be exchanged or converted
The definition was written broadly so that new types of digital value would fall under the same rules.
What the FSC Act Restricts Today
Belize restricts anyone operating a business that deals with virtual assets for or on behalf of others. These activities require a license from the Belize Financial Services Commission (FSC). The covered services include:
- Exchanging crypto for fiat currency
- Swapping one crypto for another
- Transferring crypto on behalf of clients
- Providing custody or safekeeping of digital assets
- Brokering or promoting crypto investments or token sales
- Managing or administering crypto assets as part of a financial service
As of now, the FSC has announced that no licenses for virtual asset activities will be issued until at least 31 December 2025. That means exchanges, custodial wallet operators, trading platforms, and similar service providers cannot legally operate in or from within Belize until licensing becomes available.
What Individuals Can Still Do
Private individuals are allowed to hold, store, and manage their own cryptocurrency. There is no law against owning digital assets in Belize, and using offshore exchanges or personal wallets for private purposes is permitted.
Anyone researching, for example, how to buy XRP or other digital assets before coming to Belize should be aware that purchases must take place abroad, as there are no licensed crypto exchanges operating locally. Peer to peer transfers between private users still occur but come with trust and liquidity risks.
Banks apply careful compliance checks when crypto funds move into the financial system. Converting significant amounts between crypto and Belize dollars may be difficult, delayed, or subject to extra documentation.
Shutdown Requirements and Penalties
Businesses that offered crypto services before April 2023 were required to notify the FSC and wind down operations within set deadlines. Even if they held previous financial service licenses, they cannot rely on those to continue virtual asset business activity.
Non compliance can result in regulatory penalties or criminal sanctions. The FSC encourages the public to report suspected unlicensed operators, indicating active enforcement rather than a symbolic rule.
Tax Treatment and Residency Considerations
Belize uses a territorial tax system. Only income sourced inside Belize is taxed. Crypto trading that takes place through offshore platforms is usually considered foreign sourced and is generally not taxed in Belize.
Once someone becomes a Belize tax resident, they must report worldwide income even though only Belize sourced income is taxable. Operating a crypto related business in Belize would likely trigger taxation and licensing requirements. Crypto is usually treated as property or an intangible asset, with any Belize sourced gains potentially taxed under normal rules.
Professional advice is strongly recommended for anyone planning to base a crypto heavy lifestyle or investment structure in Belize.
Everyday Practicalities for Crypto Users in Belize
Unlike parts of Central American neighbor El Salvador with its Bitcoin-friendly stance, crypto is not widely accepted for day to day payments. Businesses typically work in Belize dollars or US dollars. Visitors and expats should still expect to rely on cash, bank cards, and regular financial services for most transactions.
Those who already hold crypto should maintain access to foreign exchanges and view Belize mainly as a place to store or manage assets privately rather than to spend or convert them.
Implications for Companies and Investors
Belize is currently not suitable for running an exchange, custodial wallet provider, or crypto brokerage. Any organization seeking to base crypto operations in Belize must wait until at least the end of 2025 when licensing may reopen. Even then, rules may tighten rather than loosen, given continued international pressure on financial transparency.
Many companies with a presence here either shift virtual asset services abroad or change their business models until a clear compliance path is available.
What To Expect Next
The licensing freeze is scheduled to end on 31 December 2025. Once licensing resumes, the FSC is expected to clarify the process and compliance requirements for virtual asset businesses that want to operate legally in Belize. These will likely include strong consumer protection rules, anti money laundering controls, reporting obligations, and capital standards similar to those in other supervised financial services.
The details have not yet been published and may not be finalized until after the freeze lifts. For now, the practical takeaway is that crypto ownership will remain permitted while crypto business operations will stay paused until the FSC provides new guidance.
Summary
Belize allows you to own and use cryptocurrency. What is restricted is the operation of crypto businesses. Until licensing under the virtual asset framework becomes active, there are no legal exchanges or custodial services based in Belize. Private users must rely on foreign platforms and personal wallets, while staying aware of banking scrutiny and compliance requirements. Anyone incorporating crypto into their lifestyle or investment plans in Belize should watch for new FSC guidance as the regulatory picture evolves.
