Guyana Crypto Laws in 2024

Jan 31, 2024 SEO

As the crypto industry has developed over the years, certain countries like the United States and Malta have developed a reputation for being crypto hubs. This is so much so that they are the countries that spring to mind when we think of crypto activity. One country that does not often spring to mind is Guyana.

The South American country has mostly flown under the radar when it comes to cryptocurrency use and so, only a little is known about how cryptocurrency operates in it. In this article, we’ll break down the state of crypto laws in Guyana in 2024.

First, we need to look at the legal status of cryptocurrency in Guyana. In some countries, cryptocurrency is fully legal while it is illegal in others. Guayana falls somewhere in the middle as while cryptocurrency isn’t legal tender, it is not legally recognised either. On top of this, there are few concrete crypto laws in place to regulate the industry. So far, the government of Guyana does not seem to have licensed any crypto trading platforms and there is no formal process to become a crypto entity within the country. The country’s Central Bank has also put out various warnings to citizens cautioning them about the use of crypto and all the risks that can come with it.

While this has led some to say that there is an implicit ban on crypto in Guyana, this seems to be fast-changing.

But why are crypto regulations underdeveloped in Guyana? A lot of this can be put down to the fact that crypto use might not be significant enough to warrant them in the eyes of the government. First, we have to consider the population of the country. Guyana is the third-smallest sovereign state in mainland South America and has a population of under 810,000 people as of 2021. On top of this, it is estimated that about a third of the population lives under the poverty line. These facts mean that the country is unlikely to have the sort of crypto use as the United States or the United Kingdom. And if crypto use is not that prevalent, the government might be reluctant to create new laws in time.

But all this could be changing as Guyana’s fortunes are turning around. While it still has a low population and a sizable poverty rate, the country is considered one of the fastest-growing economies in the world. In 2022 alone, it recorded GDP growth of 62.3%, which was the highest according to the IMF. And as more Guyanese citizens gain access to financial prosperity, we could see the rates of crypto use go up as well.

This could apply both to existing use cases and new ones. Take gambling, for example. gambling is legal in Guyana and licenses are granted by the government to various establishments. The crypto industry has also seen a lot of overlap with the gambling sector, with online casinos popping up that allow wagers to be placed with cryptocurrency. As citizens become more economically empowered, they might want to try a crypto casino as a way of exploring cryptos’ potential.

Then there are the crypto companies that could open up shop in the country and begin offering crypto ATMs, enabling payments for goods and services in crypto, and much more. The end result would be, of course, better crypto laws being put in place to accommodate these changes which is desperately needed. This was the pattern in other countries and Guyana could experience the same over time.

One aspect of Guyanese crypto law that is fast in need of development is tax. This isn’t to say that the law needs to be improved. On the contrary, there are essentially no crypto tax laws in the country in the first place. The Guyana Revenue Authority’s website does not make mention of cryptocurrency and there is little guidance for users to go off.

The common assumption is that cryptocurrency trading activities would be subject to capital gains tax, as is the case in other countries with better crypto regulation. As per the Authority’s website, capital gains tax is applied if a trader makes gains while disposing of an asset and if the gain, “exceeded the cost of acquisition of the asset, if the value at the time it was acquired exceeded the value at the time of ownership, or if the value of the asset has exceeded its market value as at January 1, 2011.”

The downside of all of this is that crypto users will be at a loss for how to properly pay taxes on their assets. Without proper structures in place, users might end up underpaying or overpaying tax on their assets and some might not bother paying at all.

Guyana is currently behind the rest of the world when it comes to crypto regulation. While cryptos are not explicitly banned by the government, they are uncatered for in terms of regulation and this hasn’t provided an environment for the industry to thrive. But all this could change as the country becomes more prosperous. More money for the average citizen means that more people will be able to get involved in cryptocurrency and the country will have more of a presence within crypto circles. This will mean not only more benefits for the industry at large but will necessitate the creation of better crypto laws throughout Guyana.