Cuba embraces crypto regulation with new directive – CryptoSlate

Cuba embraces crypto regulation with new directive – CryptoSlate

Blockchain Crypto Market Technology
April 30, 2022 by Coinvasity
18
Buy Crypto or Exchange 300+ Pairs & Get up to 0.5% Cashback!Cuba will give virtual assets service providers operating in the country an initial one year license. Cover art/illustration via CryptoSlateThe Cuban central bank issued new directives for virtual assets service providers operating in the country to increase regulation of the crypto industry, Reuters reported.Cuba
wp-header-logo-93.png

Buy Crypto or Exchange 300+ Pairs & Get up to 0.5% Cashback!
Cuba will give virtual assets service providers operating in the country an initial one year license.
Cover art/illustration via CryptoSlate
The Cuban central bank issued new directives for virtual assets service providers operating in the country to increase regulation of the crypto industry, Reuters reported.
Cuba approved the use of cryptocurrencies for its citizens in 2021. 
In the official gazette of the bank published on  April 26, the bank stated any crypto project looking to operate in the country would have to apply for a license with the regulator.
This license will be valid for only one year initially.
This move has led some to believe that Cuba’s crypto adoption might be a way for it to avoid U.S. sanctions. The U.S. has heavily sanctioned the island nation for decades, making it difficult for its financial system to thrive.
Cubans have little to no access to the traditional financial markets and payments system. And due to the U.S. trade embargo, they don’t have access to debit or credit cards for international payments.
Crypto adoption in Cuba has grown significantly since the introduction of mobile internet a few years ago. The access gave people a new opportunity to be involved in cross-border transactions from within the country. 
Speaking on the new rules, a former economist at the Cuban central bank who now serves as a professor at Pontificia Universidad Javeriana Cali in Columbia, Pavel Vidal, said, 
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.
Although he doesn’t see Cuba adopting crypto as its national currency, he believes that it can still offer the country a good alternative. 
This can reduce the cost of these international transactions and generate an alternative to operations in dollars, less sensitive to the sanctions scheme.
With the increasing popularity of crypto, more countries worldwide are looking at how to regulate cryptocurrencies and virtual assets.
El Salvador made Bitcoin its national currency in September 2021.
Meanwhile, the Central African Republic adopted Bitcoin as a legal tender in a move designed to help improve its frail economy in the week of April 25.
Oluwapelumi is a believer in the transformative power Bitcoin and the blockchain industry holds.
Become a member of CryptoSlate Edge and access our exclusive Discord community, more exclusive content and analysis.
Commitment to Transparency: The author of this article is invested and/or has an interest in one or more assets discussed in this post. CryptoSlate does not endorse any project or asset that may be mentioned or linked to in this article. Please take that into consideration when evaluating the content within this article.
Disclaimer: Our writers’ opinions are solely their own and do not reflect the opinion of CryptoSlate. None of the information you read on CryptoSlate should be taken as investment advice, nor does CryptoSlate endorse any project that may be mentioned or linked to in this article. Buying and trading cryptocurrencies should be considered a high-risk activity. Please do your own due diligence before taking any action related to content within this article. Finally, CryptoSlate takes no responsibility should you lose money trading cryptocurrencies.
Got a story tip? Email [email protected]
Disclaimer: By using this website, you agree to our Terms and Conditions and Privacy Policy. CryptoSlate has no affiliation or relationship with any coin, business, project or event unless explicitly stated otherwise. CryptoSlate is only an informational website that provides news about coins, blockchain companies, blockchain products and blockchain events. None of the information you read on CryptoSlate should be taken as investment advice. Buying and trading cryptocurrencies should be considered a high-risk activity. Please do your own diligence before making any investment decisions. CryptoSlate is not accountable, directly or indirectly, for any damage or loss incurred, alleged or otherwise, in connection to the use or reliance of any content you read on the site.
© 2022 CryptoSlate. All rights reserved. Terms | Privacy

Please add [email protected] to your email whitelist.
Stay connected via

source

Add a comment