Bitcoin & Cryptocurrency Regulation in Papua New Guinea

Holding, buying, selling and using Bitcoin and other cryptocurrencies is not prohibited in Papua New Guinea. No law bans cryptocurrency, and no law grants it legal-tender status. In practice this places crypto in a legal grey area: it is neither officially endorsed nor outlawed.

The key point for newcomers is that crypto is not legal tender. The kina (PGK) remains the only recognised currency, and no business is obliged to accept Bitcoin as payment. The Bank of Papua New Guinea has stated that it does not recognise or regulate entities offering digital-asset investments, and that it does not license crypto platforms operating in the country.

Because there is no bespoke regime, users do not get the protections that licensed financial products carry. If a platform fails, freezes withdrawals or turns out to be fraudulent, recourse is limited. The most accurate way to understand the current position is: legal to use, but unregulated.

There is no single dedicated crypto regulator in PNG. Instead, several official bodies touch crypto-related activity under existing mandates:

• Bank of Papua New Guinea (BPNG): the central bank and primary monetary authority. It issues the kina, oversees the payments system, and houses the country's financial-intelligence function. BPNG has publicly stated it does not license Virtual Asset Service Providers (VASPs) or crypto investment platforms. Its website is bankpng.gov.pg.
• Securities Commission of Papua New Guinea (SCPNG): the independent statutory regulator of capital markets, established under the Securities Commission Act 2015 and enforcing the Capital Market Act 2015. SCPNG licenses and supervises securities and derivatives market participants and regularly warns the public about unregistered investment and fast-money schemes. Its website is scpng.gov.pg.
• Internal Revenue Commission (IRC): administers PNG's tax system and would assess any crypto income or gains under general tax law.

If you deal with crypto in PNG, treat BPNG and SCPNG announcements as the authoritative public sources and seek local legal advice rather than assuming a fixed rulebook exists.

Papua New Guinea has no dedicated cryptocurrency or virtual-asset statute. Crypto activity instead intersects with several existing frameworks and the stated position of the authorities.

• No crypto-specific licensing law: there is no statute creating a VASP or exchange licence. BPNG has confirmed it does not license such providers, so they operate without local oversight.
• Capital markets law: the Securities Commission Act 2015 and Capital Market Act 2015 govern securities, derivatives and investment schemes. Crypto products marketed as investments could fall foul of these laws if they are not registered with SCPNG.
• Anti-money-laundering law: the Anti-Money Laundering and Counter Terrorist Financing Act 2015 underpins PNG's AML/CTF regime (see the dedicated section below).
• General financial and consumer law: fraud, misrepresentation and unlicensed-scheme rules can apply to crypto-related conduct even without crypto-specific legislation.

Regulation may evolve quickly. PNG produced a Sector Risk Assessment on money laundering and terrorist financing through virtual assets, signalling that authorities are studying the sector even though no full licensing regime has been enacted. Anyone running or relying on a crypto service should monitor official announcements and take local legal advice.

There is currently no licensing or registration regime in Papua New Guinea for cryptocurrency exchanges or Virtual Asset Service Providers. The central bank has explicitly said it does not license such platforms. As a result, most residents who buy crypto do so through international exchanges or peer-to-peer arrangements rather than through a domestically regulated provider.

Practical realities for users include:

• No local safety net: platforms are not supervised by PNG authorities, so protections such as guaranteed withdrawals or compensation schemes generally do not apply.
• Banking and payment friction: card payments, bank transfers and foreign-exchange limits can affect whether and how you can fund an account; PNG's foreign-currency environment can add delays.
• Identity checks anyway: reputable global exchanges still require identity verification under their own AML policies, even though PNG does not license them.

Because no PNG-licensed option exists, due diligence on the provider is your main protection. Confirm a service accepts PNG users, understand its fees and withdrawal terms, and prefer well-established platforms with strong security records.

Papua New Guinea has no tax legislation written specifically for cryptocurrency. Tax is administered by the Internal Revenue Commission (IRC), and crypto is most likely to be assessed under existing general principles rather than a dedicated crypto code. A few points should be verified before you rely on them:

• Where crypto activity looks like a business or a profit-making venture (for example regular trading, or mining run as an enterprise), proceeds could fall within ordinary income-tax provisions.
• PNG has historically not operated a broad general capital gains tax. A narrow 15 percent capital gains tax took effect in January 2026, but it applies to the sale of interests in extractive (mining and petroleum) assets, not to cryptocurrency. Do not assume it covers crypto.
• The absence of a crypto-specific reporting or enforcement framework is not the same as crypto being tax-free.

Because the rules are general and untested for crypto, this page states no specific crypto rates or thresholds. Confirm your obligations directly with the IRC or a qualified PNG tax adviser. For a wider explainer, see our crypto tax guide. This is general information, not tax advice.

Papua New Guinea operates an anti-money-laundering and counter-terrorist-financing (AML/CTF) regime built on the Anti-Money Laundering and Counter Terrorist Financing Act 2015. The Financial Analysis and Supervision Unit (FASU), which sits within the Bank of Papua New Guinea, is the country's financial-intelligence unit; it detects, analyses and supervises efforts against illicit financial flows and reports annually to the BPNG board.

Two developments matter for anyone using crypto:

• FATF grey list: in February 2026 the Financial Action Task Force (FATF) added Papua New Guinea to its list of jurisdictions under increased monitoring (the grey list). PNG made a high-level political commitment to work with the FATF and the Asia/Pacific Group to strengthen its AML/CTF regime. This typically leads to tighter controls over time.
• Virtual-asset focus: FASU has produced a sector risk assessment on money laundering and terrorist financing through virtual assets, showing the regulator is tracking crypto risk in line with FATF standards.

In practice, while PNG does not license crypto platforms, reputable international exchanges still apply their own know-your-customer (KYC) and AML checks, so expect to verify your identity when you open an account. Read more in our crypto regulation hub.

For residents who decide to proceed, the typical route looks like this. Treat each step as a checklist, not a recommendation of any specific provider.

• Choose a reputable exchange: select a well-established international platform that accepts PNG users, has a strong security track record and clear fee disclosure.
• Complete identity verification: expect to provide ID and personal details to satisfy the platform's KYC and AML checks.
• Fund your account: confirm which payment methods work for PNG users and check any foreign-exchange or bank limits that may apply.
• Place your order: buy the amount you intend, paying attention to spreads and fees.
• Secure your assets: enable two-factor authentication and consider moving larger holdings to a personal wallet, including a hardware wallet for long-term storage, rather than leaving them on an exchange.
• Keep records: retain transaction history for potential tax reporting.

On everyday use, remember that no business is required to accept crypto and the kina remains the only legal tender. Never share private keys or recovery phrases, and treat unsolicited "investment manager" offers or guaranteed-return promises as red flags.

Cryptocurrency mining is not specifically prohibited in Papua New Guinea, so it is generally treated as legal under the current absence of dedicated rules. Legal does not mean frictionless, however, and several practical factors matter:

• Electricity: mining is energy-intensive, and reliable, low-cost power is the single biggest constraint. Grid reliability and electricity costs in PNG can make large-scale mining difficult to operate profitably.
• Equipment and connectivity: importing specialised hardware and securing stable internet add cost and complexity.
• Tax and business treatment: mining run as a business may attract income-tax obligations under general principles; clarify your position with the IRC.
• Future rules: the regulatory picture could tighten over time as authorities study the sector.

Anyone considering mining should evaluate power economics first and confirm there are no local permitting or tax issues before investing in hardware.

Remittances are one of the most discussed potential use cases for crypto in PNG, where cross-border transfers can be slow and costly and many people in remote areas have limited banking access. In principle, Bitcoin and stablecoins can move value internationally quickly and cheaply. The practical hurdles are significant, though: converting crypto to and from kina locally is the weakest link, prices can move sharply between sending and cashing out, transactions are irreversible, and providers are unregulated.

Notably, PNG's own central bank is exploring a public alternative. On 28 January 2025, BPNG presented the results of a central bank digital currency (CBDC) proof of concept, the "digital kina," run with Japan's Soramitsu, Mitsubishi, METI and the Japan International Cooperation Agency (JICA). The pilot demonstrated real-time payments and peer-to-peer remittances via a mobile app, with a focus on financial inclusion. A CBDC is a state-issued digital form of the kina and is distinct from private cryptocurrencies such as Bitcoin.

Several developments shape the picture as of 2026:

• January 2025: BPNG unveiled the results of its digital-kina CBDC proof of concept in Port Moresby, signalling genuine interest in digital-payment innovation.
• February 2026: the FATF placed Papua New Guinea on its grey list of jurisdictions under increased monitoring, prompting a commitment to strengthen AML/CTF controls. This is likely to influence how crypto businesses and cross-border flows are treated.
• April 2026: on 22 April 2026, BPNG Governor Elizabeth Genia issued a public warning that the bank does not license any VASPs, crypto-based investment platforms or fast-money schemes, and that participants in such schemes have no recourse if they lose money. The warning highlighted scams promising returns such as turning K30,000 into K270,000 within hours.

Together these point to a cautious central bank that is wary of private crypto while open to state-led digital-payment innovation. Rules could be introduced or tightened with limited notice, so verify the current position against official sources.

The defining risk in Papua New Guinea is the lack of regulation. With no dedicated crypto law and no licensing of platforms, users operate without the protections of a supervised market. If a platform fails or a scheme collapses, there is generally no compensation fund and limited recourse.

Specific risks to weigh include:

• Fraud and fast-money schemes: BPNG and SCPNG have repeatedly warned about scams that promise unrealistically high returns, sometimes using forged documents and the central bank's letterhead. Guaranteed or unusually high returns are a red flag.
• Volatility: crypto prices can swing sharply; only commit money you can afford to lose.
• Limited liquidity and conversion: turning crypto into kina locally can be difficult.
• Irreversibility: crypto transactions cannot be reversed, so errors and scams can mean permanent loss.

Protect yourself by using reputable, well-secured platforms, enabling two-factor authentication, keeping records, and checking whether any investment scheme is registered with SCPNG before you put money in. See more in our regulation hub.

This page is general information as of 2026 and is NOT legal, tax or financial advice. Crypto rules in Papua New Guinea are limited and evolving, so always confirm the current position with the official regulators before acting. The authoritative sources are:

• Bank of Papua New Guinea (BPNG) for monetary policy, AML/CTF, FASU, public warnings and the CBDC programme.
• Securities Commission of Papua New Guinea (SCPNG) for capital-markets rules and warnings about unregistered investment and fast-money schemes.
• FATF country page for Papua New Guinea for the latest AML/CTF monitoring status.

For the central bank's own account of its CBDC work, see Governor Genia's speech as published by the Bank for International Settlements. When in doubt, contact BPNG or SCPNG directly and consult a qualified PNG lawyer or tax adviser.

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