Cuba to Regulate Digital Currencies

  • Cuban Central Bank allows financial institutions to offer crypto services to their clients.
  • The Cuban bank revealed a document containing the upcoming regulations.
  • The institution plans to integrate tokens and currencies that private companies might offer.

Cuba plans to join the list of nations that have recognized crypto and regulated it in 2021. On Friday, it issued a resolution establishing cryptocurrency regulation in the country. According to the statement, it will legalize crypto deals in commercial transactions. Moreover, it will offer crypto service providers licenses.

The published document highlights that financial firms and other entities might utilize digital currencies among themselves. Meanwhile, the institutions will require a natural individual to help in mercantile and monetary undertakings. Also, he will aid in transaction swapping besides accomplishing pecuniary obligations.

The central bank refers to crypto as a virtual illustration of a value that customers can transfer or trade digitally. Moreover, the institution can use digital coins for investments or payments. That way, the institution accounts for all cryptocurrencies and virtual tokens that private companies might issue in the coming future. However, the Cuban financial institution prohibits government agencies from crypto deals unless authorized activities.

Moreover, the regulators highlighted that individuals need to assume the civil liabilities and risks related to digital assets. Also, they’ll need to tolerate dangers when dealing with service providers operating out of the financial and banking system.

The bank declared that cryptocurrency might be a risky game that can result in financial crimes. That can be the reason behind the bank’s move to regulate the crypto space.

Increasing Regulatory Acceptance

Cuba published the document after El Salvador legalized BTC some months ago. El Salvador’s BTC law will start operating on 7 September. Meanwhile, most LATAM nations have showed increased crypto interest in recent times. Besides Cuba, Mexico and Paraguay seem interested in cryptocurrency regulations.

However, the report by JPMorgan in July stated that El Salvador might experience monetary challenges after legalizing Bitcoin. The crypto space has seen increased institutional interest since 2021 started. That might confirm that the crypto market is here to stay.

Stay around for more updates.