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Cuba is joining the growing list of countries opting to regulate their local crypto industry. The government will soon start giving out licenses for firms that want to offer crypto-related services in the country.
The country’s central bank, the Banco Central de Cuba (BCC) will start issuing licenses for Bitcoin (BTC) and other virtual asset services providers (VASPs), Cointelegraph reported. The move could potentially encourage the growth of the country’s crypto industry.
“The Central Bank of Cuba, when considering the license request, evaluates the legality, opportunity and socioeconomic interest of the initiative, the characteristics of the project, the responsibility of the applicants, and their experience in the activity,” reads the Central Bank of Cuba resolution, which was included in the Official Gazette No. 43 published Tuesday, April 26, 2022.
The license for crypto service providers will be valid for a year and will be granted to both national and foreign firms and individuals. After its expiry, VASPs could have their licenses extended for another year but there are still no details available yet on what will happen after their licenses expire in two years, according to Techstory.
“Virtual asset service provider licenses are approved for a one-year period, extendable for a second year, given the experimental and novel nature of this type of activity,” the Gazette added.
VASPs that fail to secure a license for their operations will face penalties in line with the current banking and financial rules in the country. The requirement for a license for existing operators will take into effect 20 days after the publication, which will be on May 16, 2022. VASPs are also required to get authorization from the central bank should they decide to cease their operations in the country.
In September last year, the Banco Central de Cuba issued Resolution 215 of 2021, which recognized cryptos such as Bitcoin (BTC) and Ether (ETH) as legal payment methods. This allowed Cubans to enjoy easier remittance from overseas even with the U.S. embargo in place. Global money transfer services such as the Western Union have ceased their operations in the country due to pressure from Washington.
