The Central Bank of Cuba has issued a regulation regulating the regulation of cryptoassets in commercial transactions and the licensing of service providers in the sector.
In a resolution released this week, the Central Bank of Cuba said it could allow, for reasons of socio-economic interest, the use of certain cryptoassets in commercial transactions. In addition, the Central Bank will begin licensing cryptocurrency service providers for operations related to finance, exchange services or other payment activities.
According to the document, “financial institutions and other legal entities can use cryptoassets only among themselves and with individuals to conduct monetary and trading operations, exchange and swap transactions, as well as to fulfill monetary obligations.” All of the above operations can be performed with the permission of the Central Bank.
The regulator clarified that a crypto asset is understood as “a digital representation of value that can be sold or digitally transferred and used for payments or investments.” The central bank also notes that “individuals assume civil and criminal risks and liabilities arising from dealing with cryptoassets and service providers that operate outside the banking and financial system, even though transactions with cryptoassets between these parties are not prohibited. ”
The resolution stipulates that government agencies must refrain from using crypto assets, except as permitted by the Central Bank of Cuba. According to the regulator, even when crypto assets and cryptocurrency service providers are outside the banking and financial system, they carry risks for monetary policy and financial stability due to the high volatility that characterizes their use.
The Central Bank of Cuba said that crypto assets can also be used to finance criminal activities, given the “excessive anonymity” of users and transactions on such networks.
Recall that in the spring, the Cuban government included digital assets in the program to stimulate the state’s economy for the next five years. This could mitigate the negative effect of US sanctions on the country.
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