​Ecuador’s Central Bank to start regulating cryptocurrencies this year

What’s new? The Central Bank of Ecuador plans to issue regulations on cryptocurrencies this year. According to the statements by Guillermo Avellán, manager of the Central Bank of Ecuador, this will bring more clarity to the cryptocurrency sphere in the country and contribute prevent crimes such as money laundering.

Information on the Bloomberg Linea website

What does the Central Bank’s representative say? Asked about the state of cryptocurrency regulation in the country and its lagging behind other countries in the region, Avellán said:

“The Central Bank is working on a project to regulate cryptocurrencies, bearing in mind that the Monetary Code establishes that the dollar is the only legal tender in the country.”

Avellán explained that the new regulation will not make bitcoin or any other cryptocurrency legal tender, as has happened in El Salvador. Instead, the regulation will aim to bring more clarity to the status of cryptocurrencies in the country.

What are the reasons for creating regulation? The reason for the adoption of the regulation was the government’s concern over the possible illegal use of digital assets. Avellán stated that there have been cases of cryptocurrencies being used for money laundering purposes in the country and these regulations will aim to curb such cases.