Just-In: Ecuador Plans To Regulate BTC and Other Cryptos
As part of a reform to the country’s monetary and financial laws, Ecuador banned bitcoin and other digital currencies in July 2014. The then-President Rafael Correa, who served from 2007 to 2017, introduced the bill that made bitcoin illegal and signed it into law. This law demands Bitcoin businesses “shut down their operations immediately.
Will BTC be a legal tender in Ecuador?
The Central Bank of Ecuador is all set to prepare and implement cryptocurrency-specific regulations in the country. Talking with Bloomberg, Guillermo Avellan, manager of the Central Bank said that they are planning to expand the financial inclusion of Ecuadorians and regulate the use of cryptocurrencies in the country.
Guillermo Avellan further explained that the new regulation would not make BTC or any other cryptocurrency a legal tender, as what happened in El Salvador. Instead, the regulation would bring more clarity to the status of crypto in the country. In the first quarter of 2022, the Central Bank will formulate a regulation on the use of cryptocurrencies in Ecuador so that holders can know what the limits are, despite the fact that the dollar is the only legal tender in the country.
Ecuador banned bitcoin and other digital currencies in July 2014. The then-President Rafael Correa, who served from 2007 to 2017, introduced the bill that made bitcoin illegal and signed it into law.
This law demands Bitcoin businesses “shut down their operations immediately.[…] Those who defy the ban will face prosecution, and all bitcoins circulated and assets in bitcoin trades face confiscation,” Panam Post reported at the time.
