Cuban officials have issued revised regulations regarding virtual asset service providers in Cuba. After establishing an August framework, the Bank of Cuba has now established specific procedures for these companies or individuals to legally operate in Cuba.
Bank of Cuba Clarifies VASP Rules
Cuban authorities have introduced a new legal framework to clarify how virtual assets service providers in Cuba can operate legally. The number 89/2022 is the new law that specifies the legal requirements for individuals and businesses to be able to use cryptocurrency custody and exchange services within Cuba.
The resolution first and foremost established that the Central Bank of Cuba is the institution responsible for the approval and revision of licenses of virtual asset services providers. This resolution clarifies that:
The Central Bank of Cuba issues licenses to natural and legal persons who wish to carry out virtual asset service provider activities. When considering a license request, the Central Bank of Cuba evaluates whether the initiative is legal, feasible, socioeconomically interesting, and the specific characteristics of the project.
Applicants’ responsibility and experience in the activity.
VASPs are required to follow the instructions issued by the Central bank of Cuba as part of the prevention, detection, and combating of money laundering, terrorist financing, the proliferation of arms, or any other similar conduct.
The institution will also have the say on which cryptocurrencies or digital assets will be able to be listed on these exchanges, as it states that “virtual asset service providers operate only with virtual assets approved by the Central Bank of Cuba, through a license.” The law gives interested parties 20 days to apply for a license before having to face penalties.
Cuban Cryptocurrency Law Evolution
Cuba has been an active participant in the adoption and use of cryptocurrency. Actually, Cuba’s Communist Party proposed using this technology in order to combat the financial crisis that the country was facing back in April 2021.
This follows an earlier resolution from August 2021 when Cuban officials established the first definitions of cryptocurrency and established rules for managing them.
Pavel Vidal (an ex-economist at the Cuban Central Bank) stated to Reuters about the position of the bank:
If the central bank is creating a cryptocurrency-friendly legal framework, it is because they have already decided that it can bring benefits to the country.
Do you have any thoughts about the VASP requirements in the Central Bank of Cuba’s new Resolution? Leave your comments below.
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