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Cuba regulates usage of cryptocurrencies in the country

The Central Bank of Cuba has passed a resolution regarding the usage of cryptocurrencies in the country. This is to regulate the use of virtual assets in commercial transactions & licensing of service providers.

Cuban Central Bank published this resolution on Thursday. It stated that they could authorize the use of certain virtual assets for reasons of socio-economic interest. Moreover, they will also authorize the license of virtual asset service providers for operations related to finance & exchange. It also includes the collection of payment activities.

According to the BCC:

“Financial institutions and other legal entities may only use virtual assets among themselves and with natural persons to carry out monetary and mercantile operations, and exchange and swap transactions, as well as to satisfy pecuniary obligations.”

The bank also detailed its assessment about the virtual asset:

“Virtual assets are the digital representation of value that can be traded or transferred digitally and used for payments or investments.”

While the Central Bank of Cuba regulating cryptocurrencies is a good sign for the domestic crypto community, they’ve also stated that all the crypto activities are outside the ‘operational scope’ of the banking system. Moreover, people should know about the “criminal risks and liabilities derived from operating with virtual assets.”

Also, the bank has stated that the government administration agencies must refrain from using virtual assets in transactions. The only exception is when the Central Bank of Cuba authorizes those transactions.

Finally, the Central Cuban Bank added that cryptocurrencies imply risks of criminal activities, given the excessive anonymity of the users registered in such networks. Moreover, the characteristic of ‘privacy-centric architecture is counterintuitive as it can easily lead to multiple illicit activities without any accountability.

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