In a move that could fuel the growth of Cuba’s nascent tech industry, the Central Bank of Cuba (BCC)the country’s central bank, will start issuing licenses for Bitcoin (BTC) and other Virtual Asset Service Providers, or VASPs.
According to the Official Gazette No. 43 published on Tuesday, which includes a resolution of the Central Bank of Cuba, anyone who wants to provide services related to virtual assets must first acquire a license from the central bank. He says like this:
“The Central Bank of Cuba, when considering the license 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.”
Furthermore, the document states that those organizations that do not operate under this license and are required to do so, must face sanctions in accordance with the existing banking and financial regulations in the island nation. The Gazette also determines that this decision will enter into force 20 days after its publication, which will be on May 16. It also notes that the licenses will be extended for a second year.
“Virtual asset service provider licenses are approved for a one-year period, extendable for a second year, given the experimental and novel nature of this type of activity.”
It also stands out among the conditions of the bank that VASPs cannot cease their services without authorization from the central bank.
I would escape with my family from the dictatorship that is my country “Cuba” and invest in my private business.#BTC#SOSCuba
– The Mirror (@ElGlasses) April 27, 2022
I would escape with my family from the dictatorship that is my country “Cuba” and invest in my private business.
As Cointelegraph reported in September of last year, the BCC issued a resolution that defined cryptocurrencies such as bitcoin as a legal means of payment. Although the institution had reservations about the dangers of using crypto, the central bank became the only entity allowed to license VASPs.
By legalizing virtual assets, Cubans can now enjoy more accessible remittance services and the ability to freely send and receive funds around the world, which could trigger new cultural waves in local tech development amid 60 years of US sanctions. Under mounting pressure from Washington, global money transfer companies have largely abandoned the country.
Buenos Aires to Allow Residents to Make Tax Payments With #bitcoin #bitcoin is the only HOPE for developing countries like; #Haiti, #The Savior, #Venezuela, #Cuba, #Nigeria, #kenya to escape economic oppression. If you agree, consider following my page and retweeting this. #BTC pic.twitter.com/04FME0g1aM
— ₿itcoin Xoe (@Bitcoin_Xoe) April 26, 2022
Buenos Aires will allow residents to make tax payments with bitcoin. Bitcoin is the only HOPE for developing countries like; Haiti, El Salvador, Venezuela, Cuba, Nigeria, Kenya to escape economic oppression. If you agree, please consider following my page and retweeting this.
In fact, the country is following a similar path as El Salvador and the Central African Republic in embracing bitcoin amid the escalation of US sanctions and the economic impact of the COVID-19 pandemic. With virtual currencies linked to the prospect of financial sovereignty for many Cubans, interest in Cuba has been growing in the last two years.
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