Cuba approves regulations to authorize cryptocurrencies

Cuba approves regulations to authorize cryptocurrencies

The Caribbean country of Cuba approves regulations to authorize cryptocurrencies. In less than a year, the Central Bank approved two documents related to crypto assets. The first one set Havana's official position on cryptos. The second detailed the process that the Bank will follow to grant licenses to cryptocurrency managers.

Cryptocurrencies have experienced an extraordinary boom in Cuba. There are many who see them as a possible solution to overcome the barriers imposed by the U.S. Embargo. Among the main uses of crypto assets are the receipt of remittances, the payment of products and services, in addition to investment processes. There are several ventures in the country that operate as payment gateways and enable the exchange of P2P (person-to-person) cryptoassets.

The first Resolution was released at the end of August 2021. Therein, the Central Bank of Cuba was recognized as the entity in charge of regulating the "use of certain virtual assets in commercial transactions, as well as the granting of licenses to service providers of virtual assets for operations related to financial, exchange and collection or payment activities, in and from the national territory".

Furthermore, it was clarified in that Resolution that legal entities in Cuba may only use virtual assets among themselves and with natural persons. However, only for "monetary-mercantile operations, swap and exchange operations, as well as to satisfy pecuniary obligations at the authorization of the Central Bank of Cuba". Meanwhile, political, mass and social organizations and agencies of the Central State Administration would "refrain" from using cryptocurrencies.

In the last few days, the Central Bank of Cuba issued Resolution 89, recognizing that it will grant licenses for cryptocurrency services within the country. These licenses will have a duration of one year, initially extendable for another year. The licenses will be issued to both legal and natural persons.

The Central Bank will take into account the "legality, opportunity and socioeconomic interest of the initiative, the characteristics of the project, the responsibility of the applicants and their experience in the activity" when issuing the license.

The Resolution also clarifies that all cryptocurrency service providers in Cuba will be scrutinized to prevent them from committing fraud.

The Caribbean country of Cuba approves regulations to authorize cryptocurrencies. In less than a year, the Central Bank approved two documents related to crypto assets. The first one set Havana's official position on cryptos. The second detailed the process that the Bank will follow to grant licenses to cryptocurrency managers.

Cryptocurrencies have experienced an extraordinary boom in Cuba. There are many who see them as a possible solution to overcome the barriers imposed by the U.S. Embargo. Among the main uses of crypto assets are the receipt of remittances, the payment of products and services, in addition to investment processes. There are several ventures in the country that operate as payment gateways and enable the exchange of P2P (person-to-person) cryptoassets.

The first Resolution was released at the end of August 2021. Therein, the Central Bank of Cuba was recognized as the entity in charge of regulating the "use of certain virtual assets in commercial transactions, as well as the granting of licenses to service providers of virtual assets for operations related to financial, exchange and collection or payment activities, in and from the national territory".

Furthermore, it was clarified in that Resolution that legal entities in Cuba may only use virtual assets among themselves and with natural persons. However, only for "monetary-mercantile operations, swap and exchange operations, as well as to satisfy pecuniary obligations at the authorization of the Central Bank of Cuba". Meanwhile, political, mass and social organizations and agencies of the Central State Administration would "refrain" from using cryptocurrencies.

In the last few days, the Central Bank of Cuba issued Resolution 89, recognizing that it will grant licenses for cryptocurrency services within the country. These licenses will have a duration of one year, initially extendable for another year. The licenses will be issued to both legal and natural persons.

The Central Bank will take into account the "legality, opportunity and socioeconomic interest of the initiative, the characteristics of the project, the responsibility of the applicants and their experience in the activity" when issuing the license.

The Resolution also clarifies that all cryptocurrency service providers in Cuba will be scrutinized to prevent them from committing fraud.

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