Central African Republic

The Central African Republic initially recognized cryptocurrency as legal tender under Law n°22.004, including automatic and instantaneous convertibility to FCFA. However, this legal tender status was later revoked following concerns from the Constitutional Court. Despite this amendment, the country maintains a regulated framework for cryptocurrencies through Law n°22.004, which establishes procedures and rules for their use. In practice, the Central African Banking Commission (COBAC) prohibits banking institutions from holding, trading, or converting cryptocurrencies and requires them to report any related activities. The National Electronic Transaction Regulatory Agency (ANRTE), established by Law n°22.004, is responsible for controlling and managing cryptocurrency transactions within the country. This law provides the foundational legal framework for cryptocurrency regulation and taxation. For individual investors, profits derived from cryptocurrency trading are subject to taxation under general income provisions. While the law confirms that trader profits are taxable, no specific tax rates, brackets, or thresholds have been defined. There is no preferential treatment or reduced rates for holding cryptocurrencies for a longer period. Interestingly, tax contributions can be paid using cryptocurrencies. Cryptocurrency exchanges operating in the country are exempt from corporate tax, and there are no specific corporate tax rules detailed for other crypto-related businesses. Converting cryptocurrency to fiat currency, such as FCFA, is a taxable event, with profits from such transactions subject to tax. Similarly, crypto-to-crypto transactions are also considered taxable events, with profits made by traders being subject to tax. Law n°22.004 has undergone amendments, most notably revoking the legal tender status of Bitcoin. Additionally, the government plans to introduce further legislation, including a cybersecurity law and a data protection law, to complement the existing framework.