The Central Bank of Cuba, Banco Central de Cuba (BCC), stated on the 26th of April that it would grant licenses to VASPs (virtual asset service providers) who are ready to provide crypto services in the country. According to the Central Bank’s decision, published in the Gaceta Official No. 43 on the 26th of April, any company or firm intending to provide crypto-related services must procure a license first from the agency before it can operate.

Crypto Firms Must Secure License To Offer Services 

Finbold originally revealed in 2021 that Resolution 215, released by the Gaceta Official news media, stated that the BCC was planning to implement new guidelines for dealing with cryptocurrency holdings. As a result of this change, commercial suppliers of crypto-related services were required to get a license that would allow them to operate in the country. The BCC will be in charge of issuing licenses to firms that meet the requirements. The report stated that;

“The BCC regulates the usage of certain digital assets that will be used in commercial transactions and the issuing of licenses to providers of digital assets services for operations pertaining to foreign exchange, finance, and payment activities, both within and outside the country’s territory.”

What Factors Will The BCC Examine Before Granting A License?

For crypto service providers that wish to do business, legal or natural people must get a license of operation from the BCC.

The BCC states that:

“When assessing a license request, the Central Bank of Cuba considers the opportunity, legality, and socio-economic importance of the initiative, its features, the applicant’s responsibility, and its expertise.”

According to the document, firms who refuse to register with the BCC and secure the necessary license will face severe penalties in line with the nation’s legislation guiding financial and banking services. The Gaceta says that this verdict will take effect 20 days from the announcement, which is slated to be on the 16th of May.

“Because of the exploratory and unique character of this sort of activity, providers of crypto asset services will get a license that will last for only a year. However, the license can be extended to two years,” the report added.

At the moment, the BCC has stipulated that government entities must not utilize digital currencies in transactions only when they are given the go-ahead to do so. Presently, the report does not specify how the government of Cuba intends to tax the activities of virtual asset users. 

Also, this is another milestone in Latin America’s increasing embrace of digital currencies; Finbold also revealed on the 27th of April that the House of Senate in Mexico has installed a BTC ATM on the premises as the nation’s government prepares regulations for digital currencies.