On Tuesday, the central bank of Cuba (BCC) announced that it will now license digital assets service providers in the country.
This was confirmed in a Spanish-language resolution published in Cuba’s official language. The license, which will be valid for one year and may be extended for an additional year “given the experimental and novel nature of this type of activity,” according to BCC, will be available to a natural person – an individual human being – or Legal persons – an organization – both Cuban and foreign.
Digital assets service providers will now be able to operate with virtual assets approved by the BCC, according to the resolution. However, further details are yet to be disclosed. Meanwhile, there was a clarification that digital assets “do not include digital representations of fiat currency, securities and other financial assets widely used in traditional banking and financial systems, which are regulated in other provisions of the Central Bank of Cuba.”
August last year, Cuba’s Central Bank issued a resolution establishing rules to regulate the use of digital assets in commercial transactions and licensing of service providers in that sector.
That earlier resolution enables the bank to grant licenses to “service providers of virtual assets for transactions related to financial, exchange and collection or payment activities, in and from the national territory,” as recalled by the BCC, and immediately, the BCC prohibits government agencies from the use of digital assets in transactions, with the exception of authorized cases.
As of writing this, the resolution is yet to specify how the Cuban government will levy taxes on the digital assets activity in the country. It, however, stated that the BCC would provide or deny the requested license “in a term that in its totality does not exceed ninety working days from the date of receipt of the required documentation.”
As part of the process of issuing the license, the BCC will first consult with a Crypto Assets Group, and according to the bank, the resolution will enter into force 20 days after it has been published. Furthermore, virtual assets services providers will not be able to cease operations unless it has notified the BCC and are authorized to do so and will have to keep accounting records of their operations in accordance with the standards issued by the Ministry of Finance and Prices, based on the approved Cuban Financial Reporting Standards.
And for the punishment, the Central Bank of Cuba has declared that those who are licensed and violate the resolution or operate without license will be judged according to Decree 363, a decree that deals with administrative violations of banking, financial, and foreign exchange provisions.
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