Published in the Official Bulletin on June 21, 2023, Law 30/X/2023 regulated the provision of services with virtual assets and the establishment of digital banks in Cape Verde and came into force on June 22, 2023.

Law 30/X/2023 follows recent legislative trends regarding virtual assets, which include any digital representation of value that is not necessarily linked to a legally established currency and that does not have the legal status of fiat money but is accepted by natural or legal persons as a means of exchange or investment and can be transferred, stored, and traded electronically.

Regarding the provision of services with virtual assets, this law determined the application to entities intending to carry out activities with virtual assets in Cape Verde national territory of the legally applicable duties and obligations to prevent and repress the crimes of money laundering and terrorism and its financing. Banco de Cabo Verde is the competent authority for verifying compliance with these preventive duties and obligations by the entities subject to its supervision.

The new diploma requires prior registration with the Banco de Cabo Verde of the entities that intend to carry out these activities on a professional basis in the national territory.

Additionally, Law no. 30/X/2023 regulated the establishment in Cape Verde of banks that provide mostly retail banking services through the internet or other forms of electronic channels. Regarding the necessary authorization to be granted by Cape Verde’s regulatory and supervisory authority, the legislator chose to apply to digital banks the same requirements for acquiring the quality of a financial institution and the necessary elements for the instruction of the application for authorization that already required conventional banks. In this regard, this law also subjected digital banks to the same duties, capital requirements, risk management and controls, and other legal obligations applicable to traditional banks.

However, it is worth highlighting that Banco de Cabo Verde may establish specific market access conditions for digital banks and adjust, depending on risk assessment, certain requirements.

Law no. 30/X/2023 is a further step towards the digitalization of the Cape Verdean financial system.