DRC Embraces Crypto with 5% Tax on Gains Over USD 5,000

The Democratic Republic of the Congo (DRC) is cautiously embracing digital-asset activity while aiming to safeguard its emerging financial sector. The primary regulatory body, the Banque Centrale du Congo (BCC), allows citizens to acquire and trade cryptocurrencies at their own risk. However, no local exchange has been legalized, and crypto is not recognized as legal tender.

The DRC government is balancing innovation with consumer protection, as evidenced by recent developments. These include a partnership with Binance for a mobile-money on-ramp and preliminary discussions about a Congolese Franc (CDF)-pegged stablecoin. Historically, the BCC issued warnings between 2018 and 2020 about the risks of unregulated crypto schemes. In 2021, Virunga National Park began accepting Bitcoin and Ethereum donations, highlighting the potential of crypto in conservation efforts. In 2022, the Ministry of Digital Economy started talks with the Telegram TON Foundation about a Congo-backed stablecoin. By 2024, BCC Instruction No. 58 mandated complete interoperability between mobile money and payment networks, a prerequisite for regulated crypto gateways. In 2025, a draft of a broader Digital-Asset Law was put under inter-ministerial review, with plans to issue licenses to exchanges and token issuers by the end of the year.

The regulatory framework in the DRC involves several key authorities. The BCC controls payments, issues warnings about crypto, and is expected to grant licenses in the future. The Ministry of Digital Economy oversees policy design and a future regulatory sandbox, while the Ministry of Finance is formulating tax regulations for crypto-to-fiat exchanges and capital gains. Banks and mobile-money operators must identify their customers and report suspicious transactions involving crypto-related cash flows above USD 10,000. A sandbox rulebook will apply the same standards to licensed exchanges. Currently, crypto gains are subject to general capital-income regulations, with proposed bills in 2024 imposing a 5% withholding tax on crypto-fiat conversions exceeding USD 5,000.

In the DRC, crypto is legal to possess and transact but is not considered a medium of exchange. All retail bills must be paid in CDF or USD. Mining is unrestricted and unregulated, with small farms using hydropower present in North Kivu. Controlled exchanges are not yet in place, but any platform will require a Digital-Asset Service Provider (DASP) license after the 2025 law is enacted. Government projects include a land-registry proof-of-concept on blockchain and a planned CDF-stablecoin using TON.

The Digital-Economy Ministry advocates for a sandbox-first approach, capping the number of users, enforcing strict disclosure regulations, and providing on-the-spot oversight. Areas of focus include remittance tokens, micro-savings products, and blockchain-based agricultural supply chain solutions. Important partners in innovation include conservation groups, universities, and telecoms.

Key challenges in the DRC's crypto landscape include the regulatory grey zone, which leaves start-ups unlicensed and investors cautious. Cyber-fraud and Ponzi schemes on social media are eroding public trust, and infrastructure deficiencies such as unreliable power and poor internet penetration impede mining and exchange availability. There is also a concern about dollarization risk, as authorities worry that stablecoins could accelerate the exodus from the CDF. The lack of consumer education exposes users to volatility and phishing attacks.

Recent regulatory developments include Instruction 58/2024, which allows fintech access to the national payment switch. Binance introduced on-ramps to Airtel Money and Orange Money in October 2024. The proposed Digital-Asset Bill would introduce DASP licenses, on-shore custody, and a 1% transaction levy to fund cyber-crime. The Digital-Asset Bill is expected to be debated in parliament in the fourth quarter of 2025. The BIS Innovation Hub and BCC will test a wholesale Central Bank Digital Currency. The initial version of the sandbox, likely involving a local exchange and TON stablecoin, is expected to launch within 12 months after the bill is passed.

In conclusion, the DRC is currently in a cautious position regarding cryptocurrency. While possession is legal, there are no official permits and consumer protection measures, making activity mainly unofficial. If the regulations are practical and enforcement is not over-aggressive, the implementation of the 2025 Digital-Asset Bill by parliament could transition the DRC from a grey-market experience to a regulated but innovation-friendly environment.