Legal Crypto In Mongolia

Overview of Cryptocurrency Legality and Regulation in Mongolia

Is Cryptocurrency Legal in Mongolia

Cryptocurrencies such as Bitcoin and Ethereum are allowed to be owned, traded and used in Mongolia, and can be ordered online on platforms such as Coinbase or CoinMama, although not as legal tender. The government of Mongolia allows the public and businesses to participate in digital currency using existing financial regulation. Warnings Risking money to make a dinner reservation The Bank of Mongolia (Mongolbank) has issued these included the risk of price volatility in cryptocurrencies and the lack of consumer protection in the market, but no outright ban. The regulatory landscape is developing, and there is a degree of lack of regulation.

Laws Regulating the Cryptocurrency Market

Mongolia crypto market The Mongolia cryptocurrency market is regulated by laws specific to the country’s financial system administered by relevant regulators. The main laws and their meaning are summarized in the table below.

Table: Key Cryptocurrency Regulations in Mongolia

The Virtual Asset Service Providers Law (2021) requires virtual asset service providers (VASPs) to register with the Financial Regulatory Commission (FRC) and adhere to anti-money laundering (AML) and counter-terrorism financing (CTF) requirements, including know-your-customer (KYC) obligations in line with the standards of the Financial Action Task Force (FATF). There are cryptocurrency exchanges in Mongolia The Banking Law of Mongolia prohibits the direct handling of cryptocurrencies by banks, but the use of the service is open to the registered VASPs. The IV AMLD obliges strong AML/CTF controls for VASPs. The gains from cryptocurrencies are charged to Personal Income Tax or Corporate Income Tax under the Mongolian law (general tax laws apply to crypto with no specific crypto tax law) and should be invoiced/declared to the Mongolian Tax Authority. Mongolbank and the FRC publish risk advisories, but there are no laws providing for remedies for losses from fraud or market fluctuations.

Major Exchanges and Types of Exchange

Mongolia’s crypto market is small, with a characteristic reliance on digital and mobile services. Some Mongolians use TradeOgre, an exchange registered globally that allows buying and selling privacy-focused coins, but it is not regulated locally. Peer to peer (P2P) services that enable direct conversions between the MNT and cryptocurrency are also available using bank transfers and mobile payments through such solutions as QPay that is widely used due to high mobile penetration in Mongolia. Despite not having a Mongolian license and asking for KYC, Binance is being popular with all it crypto products. Some traders access Kraken and Coinbase for regulatory purposes, but local restrictions may also apply. Fiat transactions for cryptocurrency purchases through VASPs are possible via bank transfers with Golomt Bank and Khan Bank. As of June 2025, there are no cryptocurrency ATMs in Mongolia.

DeFi (Decentralized Finance) Market

Mongolia The DeFi market in Mongolia is still in a nascent stage and has low penetration because of low awareness and technology barrier. Services such as Uniswap, Aave, and Compound can be connected through a crypto wallet (like MetaMask), but usage is limited. DeFi is not directly covered by the VASP Law, leading to uncertainty, while the AML/CTF rules apply to fiat exchange via VASPs. The FRC has cautioned on the risks, which include lack of recourse for losses and defects in smart contracts.

Non-Fungible Token (NFT) Market

Mongolia has an underdeveloped NFT market, but the country’s cultural background is being promoted. Mongolian artists have delved into NFTs on OpenSea and Rarible, where they tokenize digital art about the nomadic tradition, throat singing (khoomei) and calligraphy. NFTs are considered digital assets, and when sold are subject to capital gains tax; the VASP Law is relevant to trades on registered platforms. They’re being held back by high Ethereum gas fees, narrow wallet access and a lack of local NFT marketplaces.

Blockchain-Compatible Land Registry Project

Mongolia is developing blockchain land registry project, an interesting use-case of blockchain. Backed by the Asian Development Bank and private companies, the pilot project in Ulaanbaatar, established in 2018, uses the blockchain technology to register land titles, helping to resolve conflicts over nomadic grazing lands and urban assets. This is a rare decision for the nomadic country of Mongolia, where this land-focused lifestyle promotes care and concern for land management and also promotes interest in another type of blockchain technology, which is a necessary stage to embrace cryptocurrency in return.

Useful Information

• Capital Gains Tax Rate: 10 percent for individuals; 10-25 percent for corporations, depending on income level.
• FRC Reporting: VASPs are required to submit AML/CTF compliance reports on a quarterly basis to the FRC.
• Mobile Penetration: Mongolia has a mobile penetration of over 90 percent, further growing QPay’s stance on crypto trades.
• Land Registry Blockchain: Implemented with Hyperledger Fabric to create trustworthy and transparent records of land titles.
• Cultural NFTs: “New projects are emerging around tokenized images of Mongolian eagle hunting and traditional Mongolian music played on the morin khuur” lon.est.
• ISR and Internet: there are 80% of the population that are connected to the internet, making the use of and access to crypto platforms possible.
• Local Crypto Community: Small, but thriving, with meetups in Ulaanbaatar formed through Telegram groups.
• Bank Bans: Only approved VASPs with FRC registration can create bank accounts required for crypto services.
• Tax Deadline: Yearly tax reporting for crypto gains due February 15.
• Blockchain in Education: Mongolian University of Science and Technology to introduce blockchain classes, local talent pool to grow.

Conclusion

The market for cryptocurrencies in Mongolia is influenced by an enabling piece of regulation in the table of the main peculiarities of the regulation table, with the Law on Virtual Asset Service Providers maintaining AML/CTF standards. The list of helpful information refers to country-specific examples including the blockchain land registry and cultural NFT trends, and illustrates Mongolia’s special synthesis of blockchain and nomadic heritage. Trading is driven by Binance, QPay-enabled P2P platforms and global exchanges, while Beta versions of DeFi and NFT markets are still young and muddy. Mongolia Grows the Cryptocurrency Ecosystem Bitcoin has been in the news recently after a somewhat slower summer, but there isn’t a lot of news on the Mongolian scene regarding the digital currency ecosystem. Political and Regulatory Environment Mongolia has not taken a firm stance on Bitcoin, with the Mongolian government still feeling its way through this while it ponders its position.