• New legislation, which will be in effect May 16, will permit cryptocurrency exchanges the freedom to trade digital assets.
• Only the Central Bank is authorized to issue operating licenses.
• In order to assist its economic crisis management, the country has taken steps to secure cryptocurrency.

Once the Central Bank of Cuba approves it, any services using or other digital assets can be licensed to operate on the Caribbean Island as of May 16th. But they will need to apply for an operating permit from the issuing organization.

Activities using cryptocurrencies were legalized on Tuesday, April 26th, after a meeting held by the nation’s issuing body, which approved measures to regulate the granting of licenses to companies that trade in cryptocurrency.

In accordance with the provisions of ‘Official Gazette No. 43 Ordinary‘, the Central Bank will be in charge of approving applications for operating licenses with Bitcoin and other virtual assets for natural and legal persons.

“[To]The document outlines the requirements that must be met for authorization, operation regulation, supervision and surveillance as well as corrective mechanisms.
This resolution states that:

“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. The Central Bank of Cuba issues the license, after consulting the Cryptoactive Group.”

It also warns foreign and local companies that they will not be able to obtain a license under the financial and banking legislation.
The regulations indicate that operational licenses will have a duration of one year and can be extended for an additional year “given the experimental and innovative nature of this type of activity.”

The Flipside

• It is stated that the Central Bank of Cuba has given authorization for authorized operators to stop offering services within the country.
• Therefore, they will be required to carry on their businesses regardless of its profitability.

Cuba has taken another step towards legalizing Bitcoin. Since September 2015, the government had approved cryptocurrency use as a means of payment.

What You Need to Care About

• The country’s economy largely depends on remittances sent by Cubans residing in the United States, as well as from oil and other resources transferred by the Venezuelan government.
• Companies that offer remittance service, like Western Union Due to economic sanctions by the U.S. government, (NYSE:), were forced to stop operations in the region.
• It will be possible once more to send money via cryptocurrency exchanges.

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