Nicaragua's fintech regulatory framework was comprehensively overhauled through Law No. 1232 (December 2024) and Resolution CDMF-XIII-2-25 (April 2025), creating a unified regime for both payment service providers (PSP) and virtual asset service providers (PSAV). Stablecoins are classified as "virtual assets", digital representations of value tradeable and transferable digitally. The regulation adopts a technology-neutral approach, permitting issuance and trading of virtual assets without differentiating by backing type (fiat, crypto, commodity) or stabilization mechanism (collateralized vs. algorithmic). PSAV activity (v) explicitly covers "participation and provision of financial services related to offering by an issuer and/or sale of a virtual asset," enabling both primary (issuance) and secondary (trading) market activities. Regulatory compliance includes KYC/AML protocols, cybersecurity standards, minimum capital of C$7.4 million (~$327,000 USD) for Level 2 activities, and monthly reporting. The framework represents a permissive, innovation-friendly approach with no explicit prohibitions on any stablecoin type.
Applicable Laws:
Law No. 1232 (Ley de Administración del Sistema Monetario y Financiero) - https://www.bcn.gob.ni/sites/default/files/marco_juridico_financiero/Ley_1232_Administraci%C3%B3n_del_Sistema_Monetario_Financiero.pdf
