Cuba legalizes cryptocurrency service providers2 min read
Amid a global wave of cryptocurrency regulation, the Central Bank of Cuba (BCC) has announced that it will issue licenses to cryptocurrency service providers, such as exchanges, for example. The announcement was made last Tuesday (26) in a resolution published in the Official Gazette of Cuba.
According to the text, the license will be available both to individuals – for P2P negotiations – and to legal entities. In the case of companies, both Cuban and foreign companies will be licensed
These newly approved operating licenses will be valid for a period of one year. But they can be extended for another year due to the “experimental and innovative nature of this type of activity”.
“To carry out activities as providers of virtual assets services, individuals or legal entities apply for a license from the BCC. Then, the Central Bank of Cuba, when considering the license application, evaluates the legality, opportunity and socio-economic interest of the initiative, the characteristics of the project, the responsibility of the proponents and their experience in the activity. The Central Bank of Cuba issues the license, after consulting the Cryptoactive Group,” reads an excerpt from the resolution.
Legalization of cryptocurrency services in Cuba
On the other hand, the resolution establishes that entities that do not operate under this license, and that must do so, will suffer sanctions in accordance with banking and financial regulations already in force in the country.
In addition, service providers may not cease their operations without prior authorization from the BCC. Furthermore, they must maintain accounting records of their operations in accordance with the rules issued by the Ministry of Finance and Prices, based on the approved Cuban Financial Reporting Rules.
The text also highlighted that digital assets “do not include digital representations of fiat currency, bonds and other financial assets widely used in traditional banking and financial systems, which are regulated in other provisions of the Central Bank of Cuba”.
However, the resolution does not specify whether/how the Cuban government will levy taxes on cryptocurrency activities.
Finally, the BCC states that the resolution will take effect 20 days after its publication. That is, from the 16th of May.
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