Cryptocurrency Regulation in Brunei Prior to 2024

Before 2024, the legal landscape for cryptocurrencies in Brunei was marked by caution and a lack of specific regulations. The Autoriti Monetari Brunei Darussalam (AMBD), the central bank of the country, did not officially ban cryptocurrencies. However, it did not recognize them as legal tender either. The stance of the AMBD was to issue warnings about the risks associated with cryptocurrencies, emphasizing that trading or owning them was not illegal, but it was done at the individual’s own risk​​​​.

Regulatory Environment

The absence of explicit bans or penalties for owning or trading cryptocurrencies in Brunei implied a gray area in regulation. The AMBD advised individuals to exercise caution and understand the risks before investing in cryptocurrencies. While there were no specific regulations on cryptocurrencies, the central bank reserved the right to regulate them in the future, which could lead to penalties for non-compliance​​​​.

Cryptocurrency Use and Trading

The use of cryptocurrencies in Brunei, although not widespread, did include popular ones like Bitcoin and Ethereum, along with a few others such as Litecoin, Dogecoin, Tether, Cardano, USDT, XRP, and Monero. These were primarily used for transactions and investment purposes​​.

Gambling and Cryptocurrencies

Aligned with Brunei’s strict anti-gambling laws, any form of gambling, including cryptocurrency gambling, was illegal in the country. This regulation reinforced the overall cautious approach of Brunei towards cryptocurrencies and related activities​​.

In summary, prior to 2024, Brunei maintained a cautious and unregulated approach towards cryptocurrencies. While not explicitly illegal, the lack of regulation, coupled with warnings issued by the AMBD, indicated a regulatory environment that was still evolving and open to future changes.

Add a Comment

Your email address will not be published. Required fields are marked *