Banco central d Cuba announced to issue granting license for bitcoin and digital assets services provider


Banco Central de
Cuba (BCC) which is the Central Bank of Cuba, announced Tuesday that it will
begin granting licenses for Bitcoin (BTC) and other virtual asset services
providers, VASPs. This step will support the growth of Cuba’s nascent tech
industry,
The legalization
of virtual assets provides Cubans with more access to remittance services and
allows them to send and receive funds freely around the world. In Cuba's
official gazette No. 43, a Spanish-language resolution got published. The license
will be issued to an individual or legal person including an organization be
it Cuban or foreign. As BCC said, licenses will be valid for one year and can
be extended for a second year. The BCC will allow providers to operate with
assets approved by it, according to the resolution. By virtual assets, it
excludes digital representations of fiat currency, securities, and other
financial assets which are used in traditional banking and financial systems, that
are regulated in other provisions of the Central Bank of Cuba.
Further, the
document added, that companies operating without a license and those required to do
so can expect penalties in line with existing banking and financial rules on
the island nation. The Gazette specifies that 20 days after its publication this
decision will enter into force, which is May 16. VASPs are also forbidden from
ceasing services without authorization from the central bank, according to the
bank's terms.
No information
has yet been provided by the Cuban government on the process of levy taxes on the
virtual asset activity. Specifically, the BCC must respond to the request for a
license within 90 working days of receiving the required documentation. BCC
will first discuss with a Crypto Assets Group in order to issue a license.
To manage the
use of virtual assets in commercial transactions and licensing of service
providers in that sector, BCC issued a resolution establishing rules in August.
In that previous resolution, the bank had been allowed to grant licenses to
those who provide virtual asset services in and out of the nation, the BCC
recalled on Thursday. Government agencies were then prohibited from using
virtual assets in transactions except when they were authorized by the BCC.
Last year in the
month of September, the BCC issued a ruling which says Bitcoin is a legal
payment method. The institution is still concerned about the risk of using cryptocurrencies.
The central bank was made the only entity that can issue licenses to VASPs.

Indrani bose
CBW - External Analyst
INDIA