Cuba’s cryptocurrency regulations take effect

September 17, 2021

According to Cuba’s official state news agency Prensa Latina, Cuba’s central bank ‘the Banco Central de Cuba’ is accepting crypto payment for commercial transactions. Resolution 215 of 2021 issued by the central bank contains provisions for a licensing regime for crypto exchanges and other virtual asset service providers operating in Cuba, according to a report in Coin Telegraph.

Despite legalizing the use of crypto assets in Cuba, the BCC has warned of the risks associated with cryptocurrencies. According to the BCC, while crypto operates outside of the nation’s banking system, the use of virtual currencies poses significant monetary policy risks and financial stability concerns. Cuba’s central bank also warned of the potential for bad actors to take advantage of the perceived anonymous nature of crypto transactions for illicit transactions.

Crypto interest in Cuba has been high over the last few years with virtual currencies associated with the possibility of financial freedom for many in the country. The recognition of crypto by the BCC could be a major step in transforming Cuba’s cryptocurrency industry as a formal sector of the island nation’s struggling economy.

Copyright @ 2021 Coin Telegraph

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