Is Forex Legal in Lesotho?

Forex trading in Lesotho operates in a regulatory gray area, as the country currently lacks specific legislation governing online foreign exchange trading activities. The Central Bank of Lesotho (CBL) serves as the primary financial regulatory authority, overseeing traditional banking operations and foreign exchange controls, but does not specifically regulate retail forex trading platforms or online brokers (1).

While online forex trading is not explicitly prohibited, it is also not formally regulated under Lesotho's current financial framework. The Central Bank of Lesotho maintains oversight of foreign exchange operations conducted through authorized banking institutions, including Standard Lesotho Bank, Nedbank, and First National Bank, but this supervision does not extend to individual retail trading activities (1).

"Subject to foreign exchange (forex) control rules, Lesotho's policy is that foreign investors may access forex for day-to-day business purposes and can remit capital and profits overseas."

Despite the absence of specific online forex regulations, traders in Lesotho are expected to comply with existing financial policies and tax obligations. Any profits generated from forex trading activities must be declared to the Lesotho Revenue Authority for taxation purposes, and all financial transactions remain subject to the country's exchange control limits, which restrict the amount of money that can be transferred out of the country per transaction (2).

Source:
https://centralbank.org.ls/
https://www.state.gov/reports/2024-investment-climate-statements/lesotho/

Last updated: 01-06-2025 Disclaimer: This article does not provide legal advice. If you need legal advice, please contact an attorney directly.