Cuba’s Central Bank to Issue Yearly Licences to Virtual Assets Service Providers

Licenced entities will be permitted to operate with only those virtual assets that are approved by the BCC.

By Radhika Parashar | Updated: 27 April 2022 18:03 IST

Cuba’s Central Bank to Issue Yearly Licences to Virtual Assets Service Providers

Photo Credit: Pixabay/ Katyocana79

Cuba had more than 50,000 cryptocurrency users as of August last year

Highlights

Central Bank of Cuba is taking crypto-friendly approach
National and foreign crypto businesses will need licence in Cuba
Licenced businesses to only operate with approved crypto assets

The Central Bank of Cuba (BCC) has decided to issue operational licences to the service providers of digital assets. This licence will be yearly and will be eligible for renewal based on the experimental and novel nature of crypto-related activity. National as well as international individuals or companies working in the crypto sector could apply for this approval in Cuba. According to the bank, the resolution will enter into force 20 days after its publication.

Licenced entities will be permitted to operate with only those virtual assets that are approved by the BCC including Bitcoin.

Any form of digital representation of Cuba's fiat currency is not licenced by the central bank, the bank clarified for businesses to keep in mind.

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BCC's decision to licence service providers in the digital assets sector has stirred excitement within Cuba's crypto community.

As per OneCubaNews, the island region had more than 50,000 cryptocurrency users amid a population of over 10 million in August last year.

NO ES BAIT

El Banco Central De #Cuba emitirá licencias a personas naturales y/o jurídicas que deseen ofrecer servicios de activos virtuales (#Bitcoin) :scream:
— Erich 🇨🇺🇵🇦:flag-sv::flag-ar::zap: (@ErichGarciaCruz) April 26, 2022

Last year, the BCC allowed banks to give licenses to “service providers of virtual assets for transactions related to financial, exchange, and collection or payment activities, in and from the national territory”.

Cuba is not the only country, however, that is beginning to use licencing techniques to keep crypto businesses operating within their territories.

El Salvador Is Struggling With Mainstream Bitcoin Adoption: Report

Earlier this year, Binance crypto exchange officially received licences to function as a money transmitter in Puerto Rico and a virtual assets services provider in the UAE.

In fact, even UK's financial regulator, the Financial Conduct Authority (FCA) has allowed cryptocurrency firms to operate with temporary licences.

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Further reading: Cryptocurrency, Bank of Cuba

Radhika Parashar

Email Radhika

Radhika Parashar is a senior correspondent for Gadgets 360. She has been reporting on tech and telecom for the last three years now and will be focussing on writing about all things crypto. Besides this, she is a major sitcom nerd and often replies in Chandler Bing and Michael Scott references. For tips or queries you could reach out to her at RadhikaP@ndtv.com. More