Cryptocurrency Regulations in Liberia Prior to 2024

As of the years leading up to 2024, Liberia’s legislative landscape regarding cryptocurrencies remained largely undefined. The Central Bank of Liberia had not issued any formal stance or regulations concerning the use, trading, or mining of cryptocurrencies. This lack of explicit legal frameworks left cryptocurrencies in a regulatory gray area within the country.

Undefined Legal Status: In Liberia, similar to many African countries, cryptocurrencies did not have a clearly defined legal status. The absence of official commentary from the Central Bank of Liberia contributed to this ambiguity. Consequently, while the use of cryptocurrencies was not explicitly illegal, it was not formally recognized or regulated either​​.

Operational Risks: Given the absence of specific regulations, cryptocurrency users and traders operated in a regulatory vacuum. This scenario posed potential risks due to the unregulated nature of the market. Users were advised to exercise caution when dealing with digital currencies, especially considering their volatility and associated risks​​​​.

General Financial Laws Apply: Although there were no specific laws or penalties for cryptocurrency use, general financial and business laws were applicable. For example, any fraudulent activities involving cryptocurrencies could lead to criminal charges under Liberia’s penal code​​.

Cryptocurrency Gambling: The legality of cryptocurrency gambling was also undefined in Liberia. As with trading, potential participants in cryptocurrency gambling were advised to seek legal advice. However, it was important to note that while the law might not explicitly forbid cryptocurrency gambling, any fraudulent activities related to it could result in criminal charges​​.

In summary, prior to 2024, Liberia’s approach to cryptocurrencies was characterized by a significant lack of regulation and clarity. This scenario necessitated a cautious approach for those engaging in cryptocurrency-related activities within the country.