The government of Cuba released a crypto decree that was created to provide clarity on the requirements that the virtual asset service providers in the country must oblige, in order to legally offer their services.

Moreover, the crypto legal framework 89/2022 precisely identifies and determines the terms and conditions for all companies and individuals that intend on providing custody services and operating crypto exchanges in Cuba.

One of the most significant matters that are settled with the new law is regarding the official regulator and supervisor, which is the Central Bank of Cuba. In particular, the new crypto framework states that the Central Bank is the sole institution in Cuba with the authority to issue licenses for the virtual asset service providers, as well as to perform various regulatory obligations.

According to the decree, the Central Bank of Cuba will take several matters into consideration prior to deciding whether to issue a license. More specifically, the decree states that the Bank will take into account everything starting from the experience of the applicants, up to the socio-economic benefits of the project itself.

Another important matter that falls under the umbrella of responsibilities of the Central Bank of Cuba is the control of which digital assets end up listed on the crypto exchanges. According to the decree, “virtual asset service providers operate only with virtual assets approved by the Central Bank of Cuba”, with the parties given a 20-day time limit to apply for the licenses before the fines kick in.

The news that Cuba released a crypto decree are definitely not a surprise, considering that in August of 2021, the country already informed the public about its plans to produce a full-blown legal framework specifically for regulating digital assets, i.e. cryptocurrencies.