The policy will become active on May 16, 2022. The Central Bank of Cuba is the primary entity authorized to give these licenses.
Today, April 26, 2022, Cuba authorizes bitcoin and other digital assets services and platforms through a new policy that regulates granting license permissions to entities that want to execute exchange activities as a business.
According to Official Gazette No. 43, which adds a policy issued by the Cuban Central Bank, this entity makes sure that those natural or legal citizens who desire to carry out services with bitcoin and other digital currencies must acquire a license before the entity.
Those entities that do not work under this permission must do so, or they will face punishments according to the banking and financial regulations already active in the nation.
Thus, the Gazette explains that this resolution becomes active 20 days after its launch, from the following Monday, May 16. this resolution also shows that these permissions will be extendable for two years.
The report also highlighted that operators could not suspend their services without getting authorized by the central entity. The document reads that virtual asset service providers cannot control their activities without receiving a Central Bank of Cuba license.
Cuba and its Path to Accepting Bitcoin
By September 15, 2021, digital assets got received as a payment method. The central bank got assigned as the only entity able to handle permissions, even though the institution showed concerns about the possible risks of using digital assets.
In this way, Cuba advances toward adopting bitcoin and its industry, despite its policies aiming at economic restrictions.
With this new legislation, local entities could begin to raise and carry out activities with digital assets and foreign companies that wish to bring their services to the Caribbean nation.
Cuba’s Primary Concern: Risks
The BCC resolution warned those who opted for using digital assets that these items represent risks that might harm financial stability due to their high volatility. This resolution also alerts that these assets work without the support of traditional financial entities and the extreme anonymity of their users.
These issues seem to be the most prominent factors leading to this regulation. Media outlets from that nation highlight a warning statement made last May by Cuban President Miguel Díaz Canel. On that occasion, he referred to activities with digital assets that intend to increase profits under archetypes that might be fraudulent procedures.
Díaz-Canel expressed that the country has been studying the convenience of using digital assets to make crucial decisions. Now, what the entity pretends so is to prevent citizens from getting deceived in the face of various criminal activities worldwide.
By Jenson Rivas
