Published: 27.04.2022
Article reading time:
2 minutes.
The Central Bank of Cuba has announced that it will issue permits for virtual asset service providers to operate in the country. The licenses will be valid for one year.
The Central Bank of Cuba will issue licenses to individuals and legal entities working with digital assets, and these organizations can be both local and foreign. Given the innovative nature of crypto assets, licenses will be issued for one year, and can be renewed for the same period.
Virtual Asset Service Providers (VASPs) will be able to work with digital currencies approved by the Bank of Cuba. These virtual assets do not include the digital version of the state currency, securities and other financial assets widely used in traditional banking and financial systems regulated by the Cuban central bank.
Last August, the Cuban Central Bank published rules governing the use of virtual assets in commercial transactions and the licensing of service providers in the sector. According to this resolution, the central bank is authorized to issue VASP licenses for transactions related to finance and payments in Cuba or outside of it. At the same time, the Bank of Cuba recommended that government agencies refrain from using virtual assets in transactions, except as permitted by the central bank.
The current version of the resolution does not specify how the Cuban government will levy taxes on transactions with virtual assets. However, it provides that the Central Bank of Cuba will grant the applicant a license or refuse to obtain it within a period not exceeding 90 working days from the date of receipt of the necessary documentation. Before issuing a license, the Bank of Cuba will consult with the working group of the Crypto Assets Group.
In addition, VASPs will not be able to terminate their activities without prior permission from the central bank. They will be required to keep records of their transactions in accordance with the requirements of the Cuban Ministry of Finance. Organizations or individuals operating without licenses will be held liable for violations of banking, financial and currency regulations.
Recall that last year the Cuban government included digital assets in the country’s economic development program for the next five years in order to reduce the negative impact of US sanctions.
Source: Bits
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