On-shore VASP in Togo

'BCEAO Circular No. 00000002/RB/2020 on the Prohibition of the Use of Cryptocurrencies and other Digital Assets in WAEMU Member States' does not exist. No BCEAO instrument prohibits cryptocurrency in UEMOA. The numbering format is also wrong: BCEAO instructions are numbered nnn-mm-yyyy (e.g. Instruction n° 008-05-2015), never with an /RB/ segment. The BCEAO's exhaustive published index of payment-system instruments 2002-2024 contains no such circular, and bceao.int returns nothing on crypto-actifs beyond the 8 May 2026 Dakar conference. The real constraint is art. 58 of the Loi uniforme of 31 March 2023: professional PSAV activity requires prior agrement from a competent authority which no member state has designated.

No BCEAO directive prohibits banks, microfinance institutions or payment service providers in Togo from crypto activity — no such instrument exists. The BCEAO's own exhaustive payment-systems register lists 12 instruments from 2002 to 2024 and contains nothing on crypto-actifs or stablecoins; a full-text fetch of Instruction n° 008-05-2015 (e-money) returns zero occurrences of 'crypto', 'actif virtuel', 'stablecoin' or 'blockchain'. As of the 8 May 2026 Dakar conference the BCEAO had only just created the C-CRYPTO drafting committee, and as of July 2026 was still drafting a roadmap. The real constraint is national and different in kind: art. 58 of Loi n° 2026-001 makes professional PSAV activity conditional on a prior agrément from an 'autorité compétente' that art. 59 leaves undesignated — so no agrément can be obtained. That Togolese banks decline crypto counterparties is commercial de-risking, not compliance with a prohibition. The claim's practical conclusion ('you cannot legally buy or sell crypto through traditional banks') therefore lands near the right outcome via a fabricated cause.

The BCEAO has issued no instruction on virtual assets or VASPs. 'Instruction N° 003/2022/RB/BCEAO' does not exist. The real regional AML/CFT instrument is the **Loi uniforme LBC/FT/FP du 31 mars 2023 (UMOA)**, transposed in Togo by **Loi n° 2026-001 du 2 mars 2026**. That law does bring PSAV within scope (art. 2(2), art. 2(51), art. 3(c)) and imposes a prior-authorisation requirement (art. 58), but it transposes nothing resembling FATF R.16 for VASPs: art. 59 defers all PSAV-specific requirements to 'les autorités compétentes', which Togo has not designated.

BCEAO Instruction N° 003/2022/RB/BCEAO: https://www.bceao.int/sites/default/files/2022-04/Instruction_003-2022_RB_BCEAO.pdf (French)

No EUR 1,000 VASP travel-rule threshold exists in Togo. There is no crypto travel rule in force in Togo or anywhere in UEMOA. Verified directly against Togo's own transposition: arts. 39-47 of Loi n° 2026-001 du 2 mars 2026 bind 'les institutions financières qui effectuent des virements électroniques', a category art. 2(41) defines by enumeration and which does not include PSAV; articles 39-47 contain no occurrence of 'actifs virtuels' or 'prestataires de services d'actifs virtuels'. PSAV are handled separately in Chapitre VI (arts. 58-59), and art. 59 defers every PSAV-specific requirement to competent authorities Togo has not designated. Arts. 39-47 set no figure at all: thresholds are left to 'montants fixés par l'autorité compétente'. A EUR-denominated threshold is doubly implausible in a XOF jurisdiction — UMOA seuils are set in FCFA (see Décision n° 003 du 28/03/2024/CM).

The instrument number and date are wrong, and the substance is outdated. Togo's pre-2026 AML/CFT statute was the loi uniforme n° 2018-004 du 4 mai 2018 relative a la lutte contre le blanchiment de capitaux et le financement du terrorisme — not 'Loi n° 2018-009 du 22 juin 2018'. That 2018 law has been superseded by Loi n° 2026-001 du 2 mars 2026 relative a la lutte contre le blanchiment de capitaux, le financement du terrorisme et de la proliferation des armes de destruction massive (JO n° 71, numero special, 2 mars 2026), which transposes the UMOA loi uniforme du 31 mars 2023. Adoption sequence: Assemblee nationale first reading 29 December 2025, Senat 26 February 2026, Assemblee nationale definitive adoption 27 February 2026, promulgation 2 March 2026. Contrary to the claim, the governing law does NOT rely on 'broad definitions ... interpreted to encompass new technologies': it defines actif virtuel (art. 2(2)) and PSAV (art. 2(51), custody included) explicitly and makes PSAV assujettis at art. 3(c). Record retention is 10 years (art. 23).

Togo's National AML/CFT Law:

VASP Obligations: Under this law, VASPs (once regulated as reporting entities or covered by broad definitions) would be required to:

Implement CDD/KYC: Identify and verify the identity of customers and beneficial owners.

Report Suspicious Transactions (STRs): Report any suspected money laundering or terrorist financing activities to the Cellule Nationale de Traitement des Informations Financières (CENTIF), Togo's Financial Intelligence Unit (FIU).

Maintain Records: Keep records of customer identification and transactions for a specified period.

VASP Obligations: VASPs must screen their customers (KYC) and transactions against the UN Consolidated Sanctions List.

Two errors. (1) There is no VASP travel rule in Togo, so there is no 'collected information' to retain under one. There is no crypto travel rule in force in Togo or anywhere in UEMOA. Verified directly against Togo's own transposition: arts. 39-47 of Loi n° 2026-001 du 2 mars 2026 bind 'les institutions financières qui effectuent des virements électroniques', a category art. 2(41) defines by enumeration and which does not include PSAV; articles 39-47 contain no occurrence of 'actifs virtuels' or 'prestataires de services d'actifs virtuels'. PSAV are handled separately in Chapitre VI (arts. 58-59), and art. 59 defers every PSAV-specific requirement to competent authorities Togo has not designated. (2) The retention period under Togolese AML/CFT law is **ten (10) years**, not five: art. 23 of Loi n° 2026-001 du 2 mars 2026 requires assujettis to 'conserve[r] pendant une durée de dix ans, à compter de la clôture de leurs comptes', and art. 50 imposes ten years on gaming operators.

Compliance Requirement: FATF Recommendation 15 specifically addresses virtual assets and VASPs, requiring countries to regulate VASPs for AML/CFT purposes, license/register them, and apply the "Travel Rule" (requiring VASPs to obtain and transmit originator and beneficiary information for virtual asset transfers).

FATF Recommendations (updated 2023)

CENTIF-Togo (Cellule Nationale de Traitement des Informations Financieres) is correctly named and is indeed the STR recipient (art. 60 of the loi uniforme). Two corrections: (i) it is no longer a matter of 'existing frameworks could be interpreted to apply' — since the transposition law adopted 27 February 2026 the PSAV are expressly assujettis (art. 3(c)) and 'actif virtuel' is defined (art. 2(2)), with vigilance obligations extended to PSAV verbatim in the government's own account of the bill; (ii) CENTIF monitors, receives and analyses STRs but does not sanction — under art. 182 sanctions are imposed by the autorite de controle of the sector concerned, and no autorite de controle has been designated for PSAV.

Togo is a UEMOA/UMOA member and the BCEAO is the common central bank for the eight member states. However, the BCEAO has issued no formal public communique warning about virtual currencies at the cited URL, which redirects silently to the BCEAO homepage. The BCEAO's documented position as of August 2026 rests on (i) Governor Kassi Brou's July 2026 statement ('Ce n'est pas une monnaie. Ce n'est pas reglementee. Donc soyez prudents.') and (ii) the 8 May 2026 Dakar crypto-asset conference launching the C-CRYPTO drafting committee. The substance of the claim (not legal tender, not regulated by the BCEAO, users bear the risk) is correct; the evidentiary basis ('consistently issued warnings', with a specific communique) is not.

Lack of Specific Crypto Legislation: Like many countries in the region, Togo has not yet enacted comprehensive, standalone legislation specifically regulating virtual assets or cryptocurrency service providers. Discussions are ongoing at the UEMOA level, but concrete national laws and enforcement frameworks are still developing.

No Specific Crypto Capital Gains Tax: Togo does not have a specific capital gains tax regime for cryptocurrencies.

Likely Treatment: If profits from crypto sales are not explicitly covered by a capital gains tax, they would most likely be considered ordinary income (see below) for both individuals and businesses, subject to the standard income tax rates.

Current Corporate Income Tax (IS) Rate: 27% (Standard rate, subject to change).

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The premise is false and everything is derived from it. Togolese financial institutions are not 'prohibited from dealing with crypto' — no BCEAO or Togolese instrument imposes such a prohibition, as the BCEAO's own payment-systems register and the full text of Instruction n° 008-05-2015 confirm. Fiat on/off-ramp friction in Togo is real, but its causes are (a) bank de-risking, a commercial choice, and (b) art. 58 of Loi n° 2026-001, which makes professional PSAV activity conditional on an agrément that cannot currently be issued because art. 59 leaves the competent authority undesignated. The AML/CFT-scrutiny sentence is right for the wrong reason: scrutiny arises because PSAV are themselves assujettis under art. 3, must report suspicions to CENTIF-Togo under art. 60 and retain records 10 years under art. 23 — not because converting crypto is forbidden.

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