The Central Bank of Cuba legalizes Bitcoin services and virtual goods

Since yesterday April 26, 2022, Cuba has authorized bitcoin services and platforms (quotation BTC in real time) and other cryptocurrencies, through legislation that regulates the delivery of licenses to companies wishing to carry out trading activities as a business.

Here's what the Official Gazette says

According to the Official Gazette No. 43 Ordinary, which includes a resolution of the Central Bank of Cuba, this entity provides that natural or legal persons who wish to operate services with bitcoin and virtual goods, must opt ​​for a license before the body.

“Establish specific requirements for the authorization, operation, regulation, supervision, surveillance, corrective mechanisms and cancellation of licenses for virtual goods service providers operating in and from the national territory.

To carry out activities as providers of virtual goods services, natural or legal persons require a license from the Central Bank of Cuba. In considering the license application, the Central Bank of Cuba evaluates the legality, timeliness and socio-economic interest of the initiative, the characteristics of the project, the responsibility of the applicants and their experience in the activity. The Central Bank of Cuba issues the license, after consulting the Cryptoassets Group ”. - Official Gazette of the Central Bank of Cuba.

Effective 20 days after publication

Likewise, it is stipulated that those entities that do not operate under this license and have to do so, will face sanctions according to the banking and financial regulations already in place in the country.

Thus, the Gazzetta states that this resolution will enter into force 20 days after its publication, ie from Monday 16 May. It also states that licenses can be extended for a second year. 

"The licenses as suppliers of virtual goods services are approved for a period of one year, extendable for a second year, given the experimental and new nature of this type of business." - Official Gazette of the Central Bank of Cuba.

It also highlights among the bank's provisions that operators cannot interrupt their services without the authorization of the central body. “Virtual asset service providers cannot cease their operations without the authorization of the Central Bank of Cuba,” the document reads.

Cuba moves towards the adoption of Bitcoin

By September 15, 2021, cryptocurrencies were authorized as a payment method. At the time, the central bank was designated as the only entity authorized to issue licenses, despite the institution having concerns about the risks of using cryptocurrencies.

In this way, Cuba takes another step towards embracing bitcoin and its industry, even though its policies have historically been geared towards economic restraints.

With this new legislation, local companies could begin to emerge to operate with cryptocurrencies, as well as foreign companies wishing to provide their services in the Caribbean country.