Bolivia to tighten crypto oversight as part of IMF backed reforms

Bolivia has committed to developing a regulatory and supervisory framework for cryptocurrencies as part of its economic program with the International Monetary Fund, with the government seeking to limit illicit capital outflows through digital asset markets.

The Bolivian Ministry of Economy and Public Finance set out the commitment in its Sept. 10 Memorandum of Economic and Financial Policies, grouping virtual asset oversight with reforms covering monetary and foreign exchange markets, pension risks and anti money laundering controls.

The document calls for a “robust” framework for regulating and supervising virtual assets to reduce the risk of improper capital outflows and protect financial resilience. It does not provide a deadline for introducing the rules or identify a single agency that would oversee the sector.

Bolivia’s crypto plans form part of a 36 month economic program agreed with the IMF. Staff from the fund and Bolivian authorities reached an agreement in July on an Extended Fund Facility, subject to approval by the IMF Executive Board. The program covers fiscal policy, foreign exchange reforms, international reserves, financial supervision and measures to strengthen anti money laundering controls.

Bolivia crypto regulation targets capital outflows

Under the memorandum, authorities plan to strengthen supervision of virtual assets alongside changes to the country’s monetary and exchange rate systems.

The government said the crypto framework would be designed to prevent illicit capital leakage through digital asset markets while supporting financial stability. Details on licensing, reporting requirements or rules for crypto exchanges and other service providers were not specified.

No decision has been disclosed on whether the framework will be introduced through legislation, an executive decree or administrative regulations. The document similarly does not identify which regulator would take primary responsibility for virtual assets.

Bolivia is pursuing the changes while dealing with severe pressure on its public finances and access to foreign currency. Government officials have described the economic conditions inherited by the current administration as the country’s most serious crisis since the 1980s.

The IMF program is intended to rebuild international reserves, reduce fiscal and external vulnerabilities and modernize monetary and exchange rate frameworks. IMF staff said in July that financial sector reforms would cover stronger supervision, monitoring of banking and systemic risks, crisis preparation and closer coordination between government agencies.

Bolivia’s government has put the financing package at roughly $1.9 billion over 36 months. The accompanying economic program includes plans to reduce the fiscal deficit and continue moving toward a market based exchange rate system.

USDT use has grown during Bolivia’s dollar shortage

Crypto use has expanded as Bolivia has faced shortages of U.S. dollars and pressure on its foreign currency reserves.

USDT has become particularly visible as residents and businesses look for dollar denominated alternatives. Tether CEO Paolo Ardoino said in August that use of the stablecoin was increasing in Bolivia and several other economies experiencing monetary instability.

As crypto.news previously reported, Bolivia’s central bank publishes a reference USDT exchange rate based on weighted peer to peer trading activity on Binance. The country recorded an estimated $14.8 billion in crypto activity between July 2022 and June 2025, according to Chainalysis data cited in the report on USDT adoption in Bolivia.

The government has meanwhile been considering a more formal role for the stablecoin. Officials have been evaluating a plan that could allow USDT to operate within the national payment system alongside the boliviano and U.S. dollar.

A proposal reported in July would permit USDT as a payment option, while local lenders Banco Unión and Banco FIE were already providing services linked to the stablecoin. Authorities had not published final implementation rules at the time.

State involvement with crypto predates the payment proposal. In March 2025, state owned energy company YPFB received government authorization to use crypto for fuel imports as the shortage of U.S. dollars made conventional payments more difficult.

Capital controls face pressure from stablecoins

Bolivia’s concern over capital movements comes as international financial institutions examine how dollar backed stablecoins interact with foreign exchange restrictions in emerging economies.

Research covered in July found that stablecoin inflows across economies showed little response to conventional capital controls. Bank for International Settlements researchers examined flows across more than 130 economies and compared stablecoin activity with foreign currency bank deposits.

The findings pointed to growing use of dollar backed tokens in countries facing inflation, weak domestic currencies or limited access to foreign exchange. Stablecoins can be transferred through blockchain networks without relying on the same banking channels used for conventional foreign currency transactions.

The IMF raised a related issue in August, warning that locally issued stablecoins could make access to digital dollars easier if users can move between domestic tokens and dollar backed assets onchain. Nearly 99% of stablecoins were denominated in U.S. dollars, according to figures cited by the fund in its assessment of stablecoin dollar adoption.

For Bolivia, the planned virtual asset framework sits alongside commitments covering foreign exchange policy and financial supervision. The government has not specified whether future crypto rules would place restrictions on stablecoin transactions, introduce limits on conversions or establish reporting requirements for transfers.

Bolivia faces FATF monitoring over financial controls

Anti money laundering reforms are another part of the government’s financial sector commitments.

Bolivia remains under increased monitoring by FATF, commonly referred to as the FATF grey list. The country made a high level political commitment in June 2025 to work with FATF and the Financial Action Task Force of Latin America to address weaknesses in its anti money laundering and counter terrorism financing system.

FATF said in its June 2026 review that Bolivia had made progress but still needed to complete several measures. Authorities were asked to strengthen risk based supervision in designated nonfinancial sectors, enforce sanctions for breaches of beneficial ownership requirements and increase money laundering investigations and prosecutions in line with the country’s risks.

The organization’s standards for virtual assets require countries to identify and address money laundering and terrorism financing risks linked to the sector.

Bolivia’s memorandum calls for improving the effectiveness of the country’s anti money laundering and counter terrorism financing system while financial regulators strengthen oversight of virtual assets.

The government has yet to publish the institutional structure, legislative route or implementation timetable for the planned crypto framework.