In a step that might help Cuba’s digital economy flourish, the Banco Central de Cuba (BCC) will begin giving licences for Bitcoin (BTC) and other virtual asset service providers (VASPs) in a step that will grant licences for the Banco Central de Cuba (BCC). According to the Official Gazette No. 43 released on April 26, anyone intending to provide VASP must first obtain a licence from the central bank, which includes a Central Bank of Cuba regulation.
It says:
“The Central Bank of Cuba, when considering the licence request, evaluates the legality, opportunity and socioeconomic interest of the initiative, the characteristics of the project, the responsibility of the applicants and their experience in the activity.”
Because of the legalisation of virtual assets, Cubans can now use more accessible remittance services and send/receive payments freely around the world, potentially sparking new cultural waves in local tech growth after 60 years of US embargo.
Furthermore, the document warns that firms that do not operate under this licence when they are required to do so will face fines in accordance with the island nation’s existing banking and financial standards. The Gazette further states that this judgement will become effective 20 days after it is published, on May 16. According to the document, the licences would also be extended for a second year:
“Virtual asset service provider licences are approved for a one-year period, extendable for a second year, given the experimental and novel nature of this type of activity.”
The BCC issued a judgement recognising Bitcoin and other cryptocurrencies as lawful payment methods. It further highlights that VASPs are not permitted to stop providing services without prior approval from the central bank. Despite misgivings about the risks of using cryptocurrency, the central bank was made the sole organisation with the authority to give VASP licences.
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