The Central Bank of Ecuador could regulate cryptocurrencies this year - this year

The Central Bank of Ecuador could regulate cryptocurrencies this year - this year

Planting the Central Bank of Ecuador plans to issue a cryptocurrency -specific regulation this year. According to Guillermo Avellan, the manager of the Central Bank of Ecuador, this will bring more clarity into the country's cryptocurrency scene and help to prevent crimes such as money laundering.

The Central Bank of Ecuador has directed an eye on crypto

The Central Bank of Ecuador plans to prepare and publish cryptocurrency -related regulations this year. The announcement was made by Guillermo Avellan, manager of the central bank, in a Target = "_ blank" href = "https://www.bloomberglinea.com/2022/31/exclusiva-banco-central-asegura-ecuador-reglamentara-uso-de-skriptomonedas-este-ano/" Rel = "noopener"> Interview on January 30th. When asked about the state of the country's cryptocurrency regulation and how it seems to be behind in the region compared to other countries, Avellan said:

The central bank is working on a project to regulate cryptocurrencies, whereby it must be taken into account that the monetary code states that the dollar is the only legal means of payment in the country.

Avellan further explained that the new regulation Bitcoin or other cryptocurrencies would not make legal means of payment, as in El Salvador with the consent of Bitcoin law , due to the volatility associated with these assets. Instead, this regulation would aim to create more clarity about the status of crypto in the country.

reasons for the resolution

In addition to the factors mentioned above, another reason for the issuance of the regulation on cryptocurrencies The government's concerns about the possible illegal use of these assets are concerned. Avellan said that the banks will be able to determine limits for the use of these instruments with the existing regulation. There were cases of actors who use cryptocurrencies for money laundering purposes in the country, and these regulations would aim to contain such cases.

While the government issued a ban from Bitcoin in 2014 and started his own digital token called dinero electronic in the year In 2017, the use of cryptocurrencies in the country continued to increase. The population is largely without bank details, with 50 % of people having no access to a bank account, according to Avellan's numbers.

Although he did not provide any specific data for the introduction of these regulations, Avellan offered some estimates. He defined:

We will work on it in the first quarter of 2022 so that it can be checked and approved by the Monetary Board between the second and third quarter of the year.

What do you think of the initiative to regulate cryptocurrencies in Ecuador? Tell us in the comment area below.

sergio@bitcoin.com '

Sergio Göschenko

sergio is a cryptocurrency journalist based in Venezuela. He describes himself as late in the game and entered the cryptosphere when the price increase took place in December 2017. He has a background as a computer engineer, lives in Venezuela and is affected by the cryptocurrency boom on a social level. It offers a different perspective on the crypto success and how it helps those who have no bank account and are under-supplied.

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