The Central Bank of Cuba also known as Banco Central de Cuba (BCC) is in the process of restructuring the operations of digital assets service providers (DASP) in the country.
The BCC has decided that putting structures in place through the issuance of a license to regulate and monitor all trades in the market will be in the best interest of the users, the investors, and the economy of the country.
Cryptocurrency recognition in Cuba started barely a year ago with Bitcoin (BTC) at the top of the list. The island country had jumped on the virtual digital assets train in a bid to evade the United State’s sanction placed on it at the time. There had been a resolution to offer a license to commercial digital service providers for the continuation of trading from that time until now.
Offerings of the BCC Licence
The license offered by the Central Bank of Cuba will have a validity period of one year after which it could be renewed for an additional year. The license offer is open to both local and foreign individuals, legal practitioners, and organizations in Cuba.
The license covers only BCC’s approved virtual digital assets and doesn’t include the digitization of traditional Cuban currency or any other conventional financial assets used in physical banking operations which are already governed by the BCC.
The BCC holds the sole right to issue, deny or withdraw a license from any digital assets service provider. The issuance of the license will be done after the BCC must have consulted with a Crypto Assets Group for further validation.
Licensed DASPs cannot abruptly interrupt their service without informing the BCC first, all accounting records will be placed under the supervision and regulation of the Ministry of Finance and Prices. Any licensed DASP who defaults by going against the regulations will be sanctioned based on Decree 363.
No government agency will be allowed to trade virtual currencies unless authorized. The procedures for making tax payments for such digital assets have not been published nor decided. Every application for the license will be approved 90 days after the submission and documentation. The resolution is expected to become operational, 20 days after it was published.