Nicaragua has no dedicated cryptocurrency, digital asset, or securities-specific regulatory framework as of 2025–2026; the country's legal system does not address virtual assets in any primary legislation identified in official sources. Nicaragua - United States Department of State

The primary regulatory authorities relevant to financial and investment activities are the Central Bank of Nicaragua, the Ministry of Development, Industry, and Trade (MIFIC), the National Foreign Investment Commission (CNIE), and the tax authority (DGI), but none have issued specific crypto or digital asset securities rules. Nicaragua - United States Department of State

No licensing or registration pathway exists for cryptocurrency exchanges, digital asset service providers, or crypto securities offerings in Nicaragua; there is no evidence that any entity has been licensed for such activities. Nicaragua - United States Department of State

The practical reality is that crypto businesses operate in a legal vacuum, facing arbitrary regulation, aggressive tax enforcement, and significant reputational risk in a jurisdiction where the rule of law is not reliably applied. Nicaragua - United States Department of State

U.S. sanctions under OFAC's Nicaragua-related program (31 CFR Part 582) block property of designated persons and entities, creating additional compliance risks for any crypto business transacting with sanctioned Nicaraguan parties. eCFR :: 31 CFR Part 582 -- Nicaragua Sanctions Regulations

The Office of Foreign Assets Control (OFAC) of the U.S. Department of the Treasury administers the Nicaragua Sanctions Regulations codified at 31 CFR Part 582, effective September 4, 2019, pursuant to Executive Order 13851 (November 27, 2018) and the Nicaragua Human Rights and Anticorruption Act of 2018 (Public Law 115-335). eCFR :: 31 CFR Part 582 -- Nicaragua Sanctions Regulations

Executive Order 14088, issued October 24, 2022, titled "Taking Additional Steps to Address the National Emergency With Respect to the Situation in Nicaragua," further expanded the sanctions framework. Nicaragua-related Sanctions | Office of Foreign Assets Control

The legal authorities for the OFAC Nicaragua sanctions program include the International Emergency Economic Powers Act (IEEPA), 50 U.S.C. §§ 1701-1706; the National Emergencies Act (NEA), 50 U.S.C. §§ 1601-1651; and the Reinforcing Nicaragua's Adherence to Conditions for Electoral Reform Act of 2021, Public Law 117-54. Nicaragua-related Sanctions | Office of Foreign Assets Control

Nicaragua's National Assembly ratified a sweeping constitutional rewrite on January 30, 2025, that abolished judicial independence, meaning there is no expectation of fair application of the rule of law or a predictable business environment for any sector, including digital assets. Nicaragua - United States Department of State

In February 2025, Nicaragua's National Assembly approved a new Foreign Investment Law (Law No. 1240), which created the National Foreign Investment Commission (Comisión Nacional de Inversión Extranjera, CNIE) to oversee and regulate all foreign direct investment (FDI) in the country. Nicaragua - United States Department of State

The Foreign Investment Law No. 1240 requires investors to submit quarterly compliance reports and provide statistical information to the Central Bank of Nicaragua. Nicaragua - United States Department of State

Nicaragua's National Assembly approved the Foreign Agents Law in 2020, which requires anyone receiving funding from foreign sources to register with the Ministry of the Interior and provide monthly detailed accounts of how funds are intended to be used. Nicaragua - United States Department of State

Nicaragua is not a party to any bilateral income tax treaty. Nicaragua - United States Department of State

The WTO conducted a trade policy review of Nicaragua in 2021, noting that trade policy had remained largely unchanged since the 2012 review. Nicaragua - United States Department of State

OFAC's Nicaragua sanctions program represents the implementation of multiple legal authorities, including executive orders issued by the President, public laws passed by Congress, and regulations codified in the Code of Federal Regulations. Nicaragua-related Sanctions | Office of Foreign Assets Control

The Nicaragua Sanctions Regulations at 31 CFR Part 582 are separate from and independent of other parts of Chapter V of Title 31, except for Part 501, the recordkeeping and reporting requirements and license application procedures of which apply to this part. eCFR :: 31 CFR Part 582 -- Nicaragua Sanctions Regulations

Persons designated pursuant to E.O. 13851 or the Nicaragua Human Rights and Anticorruption Act of 2018 are incorporated into OFAC's Specially Designated Nationals and Blocked Persons List (SDN List) with identifiers such as "NICARAGUA" and "[NICARAGUA-NHRAA]." eCFR :: 31 CFR Part 582 -- Nicaragua Sanctions Regulations

Nicaragua is a member of the Central America-Dominican Republic Free Trade Agreement (CAFTA-DR) and enacted a free trade agreement with China in January 2024. Nicaragua - United States Department of State

No licensing or registration framework exists in Nicaragua for cryptocurrency exchanges, digital asset service providers, brokers, dealers, or securities offerings involving digital assets; no regulation, law, or decree has been identified in official sources that establishes such a regime. Nicaragua - United States Department of State

Zero entities have been licensed to conduct cryptocurrency or digital asset securities activities in Nicaragua, as no licensing pathway exists under current law. Nicaragua - United States Department of State

The Foreign Investment Law No. 1240 (February 2025) introduced a mandatory registration mechanism for all foreign direct investment, administered through the Ministry of Development, Industry, and Trade's (MIFIC) Investment Directorate; this applies to any foreign-owned crypto business but is not a crypto-specific license. Nicaragua - United States Department of State

The Secretariat for Investment and Export Promotion (SPIEX) serves as the technical secretariat to the National Foreign Investment Commission (CNIE), which oversees and approves investment registrations. Nicaragua - United States Department of State

Companies operating in Nicaragua must register with the national tax administration, social security administration, and local municipality to ensure the government can collect taxes. Nicaragua - United States Department of State

According to MIFIC, the process to register a business takes a minimum of 14 days, but in practice registration usually takes much longer; establishing a foreign-owned limited liability company takes eight procedures and 42 days. Nicaragua - United States Department of State

Nicaragua allows foreigners to be shareholders of local companies, but the company representative must be a Nicaraguan citizen or a foreigner with legal residence in the country; many companies satisfy this requirement by using local legal counsel as a representative. Nicaragua - United States Department of State

Legal residency procedures for foreign investors can take up to 18 months and require in-person interviews in Managua. Nicaragua - United States Department of State

The government can limit foreign ownership for national security or public health reasons under the Foreign Investment Law. Nicaragua - United States Department of State

The 2020 Foreign Agents Law requires anyone receiving funding from foreign sources to register with the Ministry of the Interior; while it exempts business entities, authorities have required some companies to register or end their social responsibility efforts. Nicaragua - United States Department of State

OFAC license applications for transactions related to Nicaragua that would otherwise be prohibited may be submitted online, but this is a U.S. sanctions authorization, not a Nicaraguan business license. Nicaragua-related Sanctions | Office of Foreign Assets Control

OFAC general licenses authorize certain activities that would otherwise be prohibited under Nicaragua sanctions, but these do not constitute any form of Nicaraguan regulatory approval or license for crypto activities. Nicaragua-related Sanctions | Office of Foreign Assets Control

No AML/KYC-specific regulations for cryptocurrency or digital asset businesses exist in Nicaragua; the sources reviewed contain no laws, decrees, or regulatory guidance imposing CDD, EDD, STR reporting, record retention, beneficial ownership, or PEP screening obligations on crypto entities. Nicaragua - United States Department of State

OFAC's Nicaragua Sanctions Regulations impose reporting and recordkeeping requirements on U.S. persons, but these are U.S. obligations, not Nicaraguan AML requirements. eCFR :: 31 CFR Part 582 -- Nicaragua Sanctions Regulations

U.S. persons must apply for a specific OFAC license to engage in transactions that would otherwise be prohibited under the Nicaragua sanctions program, which effectively creates due diligence obligations for U.S.-connected entities transacting with Nicaraguan parties. Nicaragua-related Sanctions | Office of Foreign Assets Control

OFAC's general licenses allow all U.S. persons to engage in certain activities related to Nicaragua without applying for a specific license, but these only cover enumerated activities such as official business, certain legal services, emergency medical services, and nongovernmental organization activities. eCFR :: 31 CFR Part 582 -- Nicaragua Sanctions Regulations

OFAC interpretive guidance addresses services relating to U.S. sanctions laws requirements, including January 12, 2017 guidance, but this is not Nicaraguan AML law. Nicaragua-related Sanctions | Office of Foreign Assets Control

The OFAC Nicaragua-related sanctions program blocks the property and interests in property of persons designated pursuant to Executive Order 13851, with violations subject to penalties under 31 CFR Part 582, Subpart G. eCFR :: 31 CFR Part 582 -- Nicaragua Sanctions Regulations

The Nicaraguan government has revoked the legal registration and expropriated the assets of more than 5,700 NGOs, business chambers, academic institutions, and non-government affiliated media outlets, using the 2020 Foreign Agents Law as of April 2025. Nicaragua - United States Department of State

The government has seized private property and jailed individuals for failure to pay tax bills and fines, often while legal proceedings are still ongoing; these tax issues have impacted U.S. companies and companies owned by U.S. citizens. Nicaragua - United States Department of State

Nicaraguan authorities continue to unjustly detain political prisoners, forcibly exile citizens, unjustly seize private property, and disregard and dismantle the rule of law. Nicaragua - United States Department of State

Several large companies, including some U.S. companies and franchises, have disputed their tax liabilities with the government, which often results in negative outcomes for the companies. Nicaragua - United States Department of State

OFAC designated state-owned mining company ENIMINAS in June 2022, subjecting it to U.S. sanctions. Nicaragua - United States Department of State

The United States Trade Representative (USTR) initiated an investigation under Section 301 of the Trade Act of 1974 on December 10, 2024, concerning Nicaragua's acts, policies, and practices related to labor rights, human rights, and the rule of law. Nicaragua - United States Department of State

Federal Register notices document amendments to the Nicaragua Sanctions Regulations, including 88 FR 75494-23 publishing general licenses, 88 FR 11814-23 publishing general licenses 3 and 4, and 87 FR 78484-22 publishing humanitarian sanctions regulations amendments. Nicaragua-related Sanctions | Office of Foreign Assets Control

OFAC has issued guidance on licenses for legal fees and costs, allowing limited amounts of blocked funds for payment of legal fees incurred in challenging the blocking of U.S. persons in administrative or civil proceedings. Nicaragua-related Sanctions | Office of Foreign Assets Control

OFAC has issued guidance on entities owned by blocked persons, which provides that entities owned by persons whose property and interests in property are blocked are also subject to sanctions. Nicaragua-related Sanctions | Office of Foreign Assets Control

No tax guidance has been issued for virtual assets in Nicaragua; no law, decree, or regulation has been identified in official sources that addresses the tax treatment of cryptocurrency gains, capital gains on digital assets, or VAT on crypto transactions. Nicaragua - United States Department of State

Tax reforms passed in February 2019 tripled the alternative minimum tax rate from 1 to 3 percent for companies earning more than five million dollars in gross annual revenue in Nicaragua and doubled it from 1 to 2 percent for businesses with incomes between two and five million dollars in gross annual revenue. Nicaragua - United States Department of State

The 2019 tax reforms increased the selective consumption tax (SCT) for many items, including non-alcoholic and alcoholic beverages and imported fruits; SCT rates are not always clearly published and disadvantage importers. Nicaragua - United States Department of State

Customs authorities tax imported goods at the border based on an arbitrary valuation that can triple the declared value of the good, rather than the product's retail price. Nicaragua - United States Department of State

Nicaraguan authorities assess income taxes based on gross revenue rather than net profit, which creates particular challenges for crypto businesses operating with thin margins. Nicaragua - United States Department of State

The Nicaraguan Tax Authority (DGI) has increased the frequency, duration, and scope of audits on businesses; some audits take several months and require businesses to dedicate office space and support staff to auditors. Nicaragua - United States Department of State

Some businesses report that up to eight different government entities have arrived at the same time to conduct audits, including labor authorities, social security authorities, and city and regional tax authorities. Nicaragua - United States Department of State

These audits nearly always find that businesses owe additional taxes and often include fines equal to the amount of taxes purportedly owed, with fines appearing to lack a legal basis. Nicaragua - United States Department of State

The government promised revisions to the 2019 tax reform after an observation period of 90 days, but as of April 2025 — six years after implementation — the authorities had still not proposed revisions. Nicaragua - United States Department of State

Nicaragua has no dedicated legal framework for cryptocurrency, digital assets, or securities involving virtual assets, leaving all such businesses in a regulatory vacuum with no clear rules, no authorized regulator, and no licensing pathway. Nicaragua - United States Department of State

The January 30, 2025 constitutional rewrite abolished judicial independence, meaning even if a dispute arises, there is no expectation of fair application of the rule of law or a predictable business environment. Nicaragua - United States Department of State

Investors should exercise extreme caution and due diligence when investing in Nicaragua, as authorities continue to unjustly detain political prisoners, forcibly exile citizens, unjustly seize private property, and disregard and dismantle the rule of law. Nicaragua - United States Department of State

The investment climate is rife with reputational risk and arbitrary regulation; the government has revoked legal registration and expropriated assets of more than 5,700 NGOs, business chambers, academic institutions, and non-government affiliated media outlets. Nicaragua - United States Department of State

Almost all international financial institutions have stopped issuing new loans to Nicaragua, limiting access to international financing and correspondent banking relationships. Nicaragua - United States Department of State

The Ortega-Murillo regime uses tax laws and enforcement to intimidate opponents and increase government revenue; companies cite challenges including increased tax audits, arbitrary fines, revised tax laws, and inflated tax liabilities. Nicaragua - United States Department of State

U.S. persons and entities doing crypto business involving Nicaragua face OFAC sanctions risk under 31 CFR Part 582, including potential penalties for transactions with blocked persons or entities owned by blocked persons. eCFR :: 31 CFR Part 582 -- Nicaragua Sanctions Regulations

OFAC's guidance on entities owned by blocked persons means that any entity 50% or more owned by a designated person is also blocked, creating complex chain-of-custody due diligence issues for investors. Nicaragua-related Sanctions | Office of Foreign Assets Control

Personal connections with government insiders are critical for foreigners investing in Nicaragua; all actions are subject to de facto approval by the co-Presidency. Nicaragua - United States Department of State

Foreign investors report significant delays in receiving residency permits, requiring frequent travel out of the country to renew visas, creating operational disruption. Nicaragua - United States Department of State

Register of companies with tax administration, social security, and municipalities are typically not available to the public, making the vetting of potential business partners nearly impossible. Nicaragua - United States Department of State

Nicaragua is not a party to any bilateral income tax treaty, exposing cross-border crypto businesses to double taxation without relief mechanisms. Nicaragua - United States Department of State

The new Foreign Investment Law No. 1240 requires quarterly compliance reports and statistical information submission to the Central Bank, designed to exert control and surveillance on foreign investment. Nicaragua - United States Department of State

A deepening partnership with China since 2021 has led to a free trade agreement and loans totaling roughly $1 billion, with the regime's stated preference for Chinese state-owned enterprises and technology, which may create or exacerbate U.S. sanctions compliance issues. Nicaragua - United States Department of State

Some companies report being advised by authorities against pursuing legal cases and to negotiate directly with tax authorities, indicating a lack of meaningful legal recourse. Nicaragua - United States Department of State

The government can limit foreign ownership for national security or public health reasons under the Foreign Investment Law, creating additional unpredictability for crypto businesses. Nicaragua - United States Department of State

Nicaragua-related Sanctions | Office of Foreign Assets Control

eCFR :: 31 CFR Part 582 -- Nicaragua Sanctions Regulations

Nicaragua - United States Department of State