Cuba Regulates the Use of Virtual Assets for Commercial Transactions

In a resolution, the country’s central bank also stipulated rules for granting licenses to institutions handling cryptocurrencies.

AccessTimeIconAug 27, 2021 at 3:53 a.m. UTC
Updated May 11, 2023 at 3:43 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

The Central Bank of Cuba issued a resolution establishing rules to regulate the use of virtual assets in commercial transactions and licensing of service providers in that sector.

In the resolution published Thursday, the central bank, which is known as the BCC, said it may authorize, for reasons of socioeconomic interest, the use of certain virtual assets in commercial transactions and license virtual asset service providers to allow them to conduct certain financial activities, such as collecting payments.

“Financial institutions and other legal entities may only use virtual assets among themselves and with natural persons to carry out monetary and mercantile operations, and exchange and swap transactions, as well as to satisfy pecuniary obligations,” the bank said.

The central bank detailed that a virtual asset is understood as “the digital representation of value that can be traded or transferred digitally and used for payments or investments.”

The BCC also clarified that “persons assume the civil and criminal risks and liabilities derived from operating with virtual assets and service providers that operate outside the banking and financial system, even though transactions with virtual assets between these persons are not prohibited.”

On the other hand, the resolution stipulated that government agencies must refrain from using virtual assets in transactions, except in cases authorized by the Central Bank of Cuba.

According to the BCC, even when such virtual assets and the providers of such services operate outside of the banking and financial system, their management implies risks for monetary policy and financial stability because of the volatility that characterizes digital currencies and their use in data networks in cyberspace.

The BCC also said that cryptocurrencies carry the risks of being used to finance criminal activities because of their anonymous nature.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Andrés Engler

Andrés Engler was a CoinDesk editor based in Argentina, where he covers the Latin American crypto ecosystem. He holds BTC and ETH.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.


Read more about