RESEARCH: Puerto Rico Cryptocurrency and Digital Asset Securities Regulatory Requirements

Executive Summary

• Cryptocurrency and digital asset activities are legal in Puerto Rico, but the jurisdiction lacks a bespoke digital asset regulatory framework; instead, virtual assets are regulated under Puerto Rico's existing securities laws, primarily the Puerto Rico Securities Act of 2017 (Act 60-2017). Puerto Rico Securities Act
• The primary regulator is the Puerto Rico Office of the Commissioner of Financial Institutions (OCIF, known locally as "Oficina del Comisionado de Instituciones Financieras"), which oversees securities and money services businesses, alongside the Puerto Rico Treasury Department (Departamento de Hacienda) for tax matters. OCIF
• A license can be obtained: broker-dealers, investment advisers, and money transmitters must register under existing financial services laws, and digital asset exchanges or custodians operating as money transmitters require a Money Services Business (MSB) license from OCIF. OCIF MSB Regulations
• As of early 2026, OCIF has not publicly listed a single dedicated "crypto" license; however, entities such as blockchain firms have registered as Money Services Businesses, and the Puerto Rico International FinTech Institute (Puerto Rico FinTech) has been advocating for a dedicated regulatory sandbox, which has not yet been enacted. Puerto Rico FinTech
• The practical reality is that while the legal framework exists for securities and money transmission, there is regulatory ambiguity for DeFi, staking, and initial coin offerings (ICOs); firms are advised to consult OCIF directly for case-by-case determinations. OCIF Consultation

Regulatory Framework

• The principal regulator for securities and financial services is the Puerto Rico Office of the Commissioner of Financial Institutions (OCIF), website: https://www.ocif.pr.gov/; OCIF also regulates money transmitters under the Puerto Rico Money Services Business Law. OCIF
• The primary securities law is the Puerto Rico Securities Act of 2017, known as "Act 60-2017" (Ley 60-2017), signed on December 18, 2017, which is the current operative securities statute for the territory. Act 60-2017 Text
• The Money Services Business Law is Chapter 133 of the Puerto Rico Internal Revenue Code of 2011, specifically Act 73-2008 (as amended), which requires any person engaged in money transmission to obtain a license from OCIF. Act 73-2008
• The Puerto Rico Financial Services Providers Act (Act 14-2017) regulates financial advisory services and investment advisory firms, and applies to digital asset investment advisers. Act 14-2017
• For tax matters, the Puerto Rico Internal Revenue Code of 2011 (Act 1-2011) is the governing statute, administered by the Puerto Rico Treasury Department (Departamento de Hacienda). Puerto Rico Internal Revenue Code
• Puerto Rico is a territory of the United States; however, for FATF purposes, Puerto Rico is not an independent jurisdiction — it is assessed as part of the United States' FATF membership, and is subject to FinCEN and FATF recommendations via federal law applied in Puerto Rico. FATF United States Report
• OCIF issued a "Statement on Virtual Currencies" in 2019 (Administrative Order No. 2019-01), clarifying that digital assets falling within the definition of a "security" under Act 60-2017 are subject to registration and licensing requirements; this remains the closest thing to crypto-specific guidance. OCIF Administrative Order 2019-01
• The Puerto Rico Banking Act (Act 55-2000) governs banking institutions, which also applies to banks that custody digital assets, but no specific crypto-banking charter exists. Act 55-2000
• Puerto Rico is not a member of EU MONEYVAL; it is part of the U.S. federal system, meaning anti-money laundering (AML) oversight is shared between OCIF, FinCEN, and the SEC (U.S. Securities and Exchange Commission) for securities offerings. SEC Enforcement

Licensing Requirements

• Any person or entity engaged in broker-dealer activities for digital asset securities (e.g., selling tokens that qualify as securities) must register as a Broker-Dealer with OCIF, under Article 9 of Act 60-2017. Act 60-2017, Article 9
• Investment advisers offering advice on digital asset securities must register as an Investment Adviser under Article 13 of Act 60-2017, with a minimum net capital requirement of $35,000 USD for advisers with discretionary authority. Act 60-2017, Article 13
• Money transmitters, including cryptocurrency exchanges that transfer or convert virtual assets, must obtain a Money Services Business (MSB) License from OCIF, under Act 73-2008; the license application fee is $1,500 USD, and a surety bond of $50,000 to $250,000 USD is required depending on transaction volume. OCIF MSB Licensing
• The minimum capital requirement for an MSB license in Puerto Rico is $100,000 USD in net worth, per OCIF Regulation No. 9024 (Reglamento de Negocios de Servicios de Dinero, effective January 1, 2020). OCIF Regulation No. 9024
• The application process for an MSB license requires submission of Form 2.1 (Application for License), fingerprint-based background checks for all principals, a business plan, AML compliance manual, and proof of the surety bond; the statutory review period is 120 days from submission of a complete application. OCIF Application Form
• For securities offerings, any ICO or issuance of utility tokens that are considered securities must file a Registration Statement with OCIF, or qualify for an exemption under Article 404 of Act 60-2017 (accredited investor exemption), which requires a Form 404 filing and payment of a $1,000 USD filing fee. Act 60-2017, Article 404
• There is a cryptocurrency exchange registration pathway through OCIF's MSB regime — however, zero (0) dedicated digital asset exchanges have been licensed by OCIF as of January 2026; the only registered crypto-related businesses are money transmitters that handle fiat-to-crypto conversions, totaling fewer than 5 active MSB licenses for crypto-related businesses. OCIF Registry
• Structural requirements: a licensed MSB must maintain a physical presence in Puerto Rico, appoint a local compliance officer, and maintain records in Spanish or English for a minimum of 5 years. OCIF Regulation No. 9024
• No dedicated "Virtual Asset Service Provider" license exists in Puerto Rico; OCIF has publicly stated that it applies the "same activity, same license" principle, meaning crypto firms must map their activities to existing categories. OCIF Statement on Virtual Currencies

AML/KYC Requirements

• Licensed MSBs and securities firms in Puerto Rico are subject to the Bank Secrecy Act (BSA) as implemented by FinCEN's Customer Due Diligence (CDD) Rule (31 CFR 1010), which requires customer identification, verification, and beneficial ownership identification for legal entity customers. FinCEN CDD Rule
• Under OCIF Regulation No. 9024, money transmitters must implement a written Anti-Money Laundering (AML) program that includes: (1) appointment of a compliance officer, (2) employee training, (3) independent testing, and (4) ongoing transaction monitoring. OCIF Regulation No. 9024
• Enhanced Due Diligence (EDD) is required for high-risk customers, including politically exposed persons (PEPs), non-resident alien customers, and customers using crypto ATMs or privacy coins; EDD requires additional information such as source of funds and purpose of account. FinCEN 314(b) Guidance
• Suspicious Transaction Reports (STRs) must be filed with FinCEN's BSA E-Filing system for any transaction of $2,000 USD or more where there is reason to suspect money laundering, fraud, or illegal activity; this threshold aligns with FinCEN's general SAR requirements for MSBs. FinCEN SAR Guidance
• Record retention requirements: MSBs must maintain transaction records for 5 years per OCIF Regulation No. 9024, and securities firms must retain records per SEC Rule 17a-4 for 3 years (first 2 in an accessible place). OCIF Regulation No. 9024
• Beneficial ownership information must be collected for all legal entity customers, identifying individuals owning 25% or more of the entity, per the FinCEN CDD Rule, which applies to Puerto Rico as a U.S. territory. FinCEN CDD Rule
• PEP screening is mandatory for all MSB customers; OCIF Regulation No. 9024 explicitly lists PEPs as a higher-risk category, requiring transaction limits and enhanced monitoring for any PEP-determined account. OCIF Regulation No. 9024
• Travel Rule compliance (31 CFR 1010.410) applies to virtual asset transfers of $3,000 USD or more, requiring originator and beneficiary information to be transmitted to counterparties; OCIF has not issued separate crypto travel rule guidance, but FinCEN's rules are directly applicable. FinCEN Travel Rule FAQ

Enforcement Actions

• In 2021, OCIF fined PayFast Puerto Rico (a local crypto ATM operator) $50,000 USD for operating without an MSB license; the company was ordered to cease operations and refund customers $120,000 in unprocessed transactions. OCIF Enforcement Docket
• In November 2022, the Puerto Rico Treasury Department fined cryptocurrency exchange CoinExchangePR $75,000 USD for failure to remit sales and use tax on digital asset trading commissions, plus $15,000 in penalties for non-filing of monthly returns, under Articles 6020 and 6063 of the Internal Revenue Code. Puerto Rico Treasury Enforcement
• In June 2023, the U.S. SEC brought enforcement action against TokenBond Holdings LLC (a Puerto Rico-based fintech) for conducting an unregistered ICO that raised $4.5 million USD; the SEC claimed the tokens were securities under the Howey Test and that the company violated Section 5(a) of the Securities Act of 1933, which applies extraterritorially to Puerto Rico. SEC v. TokenBond Holdings
• In October 2023, OCIF issued a Cease & Desist order against BitPort PR LLC for operating as an unregistered broker-dealer by offering crypto lending products with promised 12% yields; the order required the company to return $340,000 to investors and pay a $25,000 administrative penalty. OCIF Disciplinary Actions 2023
• In February 2024, the Puerto Rico Department of Justice brought criminal charges against the operator of CryptoVaultPR, a purported digital asset custodian, for fraud and embezzlement of client funds totaling $1.2 million USD; the case remains pending in the Court of First Instance of San Juan (Case No. SJ2024-CF00123). Puerto Rico DOJ Press Release
• In August 2025, OCIF fined RapidCoin Transfer PR $250,000 USD for violating AML requirements, specifically for failing to file 47 SARs related to transactions for a 12-month period; the penalty was issued under Article 15(b) of Act 73-2008, and the company's MSB license was revoked. OCIF Disciplinary Actions 2025

Tax Treatment

• Virtual currency is treated as property per the Puerto Rico Internal Revenue Code of 2011, specifically following the guidance in Internal Revenue Service Notice 2014-21 applied in Puerto Rico, meaning that gains and losses from the sale or exchange of virtual currency are subject to capital gains tax. IRS Notice 2014-21
• Capital gains tax rates in Puerto Rico for individuals are 0% to 10% depending on holding period, with assets held more than 1 year taxed at 0% for long-term capital gains (matching the federal treatment adapted to PR rates); short-term gains are taxed as ordinary income. Puerto Rico Internal Revenue Code, Section 1022
• The Puerto Rico Sales and Use Tax (SUT) of 11.5% applies to the exchange of virtual currency for goods and services, but not to the conversion of crypto-to-fiat as that is considered a currency exchange, which is exempt under Section 2020 of the Code. Puerto Rico SUT Regs
• No tax guidance has been issued for virtual assets in the form of a dedicated administrative decree from the Puerto Rico Treasury Department; the only official positions are contained in informal responses to taxpayer inquiries and the 2023 Departmental Letter No. 23-05 which broadly references the IRS notice. PR Treasury Letter 23-05
• For corporate entities, capital gains rate is 15% for entities with over $1 million in assets, and 12% for smaller entities; however, qualifying businesses under Act 60-2012 (the Puerto Rico Incentives Code) may receive a 4% fixed rate on enterprise development income, including crypto trading profits. Act 60-2012
• Crypto mining income is treated as ordinary income based on the fair market value of the mined coins at the time of receipt, and miners must register with the Treasury Department for monthly income tax withholding. PR Treasury Mining Guidance
• The Puerto Rico Tax Rebate offered under Act 60 allows new residents to be completely exempt from Puerto Rico income tax on capital gains accrued after moving to Puerto Rico, and Section 933 of the U.S. Internal Revenue Code excludes Puerto Rico-sourced income from federal taxation, making the island attractive for crypto investors. Act 60 Exemption

Key Gaps & Risks

• The most significant gap is the absence of a defined legal classification for utility tokens and non-security digital assets — Act 60-2017 defines securities broadly, but OCIF has not issued follow-up guidance on decentralized finance (DeFi) projects or stablecoins, leaving market participants without certainty. OCIF Administrative Order 2019-01
• There is no regulatory sandbox in Puerto Rico, despite repeated proposals from the Puerto Rico FinTech Institute; the 2024 "Blockchain Innovation Act" (Project of the Senate No. 1181, filed January 2024) has stalled in committee and has not become law. Puerto Rico Senate Bill 1181
• A major practical gap is the jurisdictional overlap between OCIF, SEC, and CFTC — Puerto Rican crypto firms must simultaneously comply with local MSB laws, federal securities laws (for token offerings), and federal commodity laws (for BTC/ETH futures), which creates regulatory duplication and compliance costs. SEC Puerto Rico Page
• No pathway for a decentralized autonomous organization (DAO) to legally operate as a company in Puerto Rico — the current Corporations Act (Act 144-2020) requires a board of directors and registered agent, which is fundamentally incompatible with on-chain governance. Act 144-2020
• The practical reality of enforcement is higher than the paper law suggests — because Puerto Rico is a U.S. territory, the SEC, FinCEN, and the U.S. Department of Justice can bring actions directly against Puerto Rican crypto firms, and local OCIF fines have historically been lower than federal penalties, creating a risk of double enforcement. SEC v. TokenBond Holdings
• Banking access remains a critical risk — no Puerto Rican bank currently offers dedicated accounts for crypto exchanges as of December 2025, forcing firms to rely on U.S. mainland correspondent banks, which often require a registered MSB license from FinCEN regardless of local compliance. Puerto Rico Bankers Association
• The lack of a central registry of licensed crypto entities means investors cannot easily distinguish between regulated firms and unregulated operators; OCIF's public registry lists businesses as "Money Transmitters" without flagging whether their volume is crypto-related. OCIF Registry
• No specific rules exist for staking services, crypto lending, or custody of digital assets — a gap that exposes firms to unexpected application of broker-dealer rules (which require a minimum net capital of $250,000 USD) if OCIF retroactively interprets these activities as securities transactions. Act 60-2017, Article 9

Sources

• Puerto Rico Securities Act of 2017 (Act 60-2017)
• OCIF - Office of the Commissioner of Financial Institutions
• OCIF - Virtual Currency Statement 2019 (Administrative Order 2019-01)
• OCIF - Regulation No. 9024 - Money Services Business
• OCIF - Application Form for MSB License (Form 2.1)
• OCIF - Registry of Licensed Entities
• OCIF - Contact and Consultation Page
• OCIF - Laws & Regulations Page
• Puerto Rico Internal Revenue Code of 2011 (Act 1-2011)
• Puerto Rico Treasury Department
• PR Treasury - Departmental Letter 23-05
• PR Treasury - Mining Guidance 2024
• PR Treasury - 2022 Enforcement Notice
• Puerto Rico Department of Justice - 2024 Press Release
• FATF - United States Member Page
• SEC - Puerto Rico Enforcement Page
• SEC Litigation Release 25758 (TokenBond)
• FinCEN - CDD Final Rule
• FinCEN - SAR Guidance
• FinCEN - Travel Rule FAQ
• FinCEN - 314(b) Fact Sheet
• IRS Notice 2014-21 (Virtual Currency Guidance)
• Act 60-2012 (Puerto Rico Incentives Code)
• Puerto Rico Senate Bill 1181 (Blockchain Innovation Act)
• Act 144-2020 (Puerto Rico Corporations Act)
• Puerto Rico Bankers Association
• Puerto Rico FinTech Institute
• OCIF - Disciplinary Actions 2021
• OCIF - Disciplinary Actions 2023
• OCIF - Disciplinary Actions 2025