October 3, 2022

Just-In: Ecuador Plans To Regulate BTC and Other Cryptos

2 min read

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The Central Bank of Ecuador is planning to come up with a framework to control Cryptocurrencies by the end of this year. Guillermo Avellan, the supervisor of the Central Bank of Ecuador supposedly said that this will give more clarity to the cryptocurrency financiers and also assist to avoid criminal offenses related to money laundering.

Will BTC be a legal tender in Ecuador?

The Central Bank of Ecuador is all set to prepare and carry out cryptocurrency-specific regulations in the country. Talking with Bloomberg, Guillermo Avellan, manager of the Central Bank said that they are preparing to broaden the monetary addition of Ecuadorians and regulate the use of cryptocurrencies in the nation.

Guillermo Avellan further explained that the new guideline 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 nation. In the first quarter of 2022, the Central Bank will develop a policy on the use of cryptocurrencies in Ecuador so that holders can understand what the limitations are, regardless of the fact that the dollar is the only legal tender in the country.

  • When to expect?

Avellan did not give particular dates concerning Crypto policies, nevertheless, he recommended that they will be made with it by the end of the 3rd quarter in 2022.

We are going to work in the first quarter of 2022 so that it can be evaluated and approved between the 2nd and third quarters of the year by the Monetary Board, stated Guillermo Avellan

  • Global adoption of Cryptocurrency

The cryptocurrency ecosystem has experienced a substantial spike in adoption all around the world. El Salvador on 25th November 2022, legalized any cryptocurrency, consisting of bitcoin, for use as a legal tender.

Countries like the U.S. and Canada have actually legally permitted trading in virtual currencies, while others like China and Russia have restricted it by the law. Just recently, India recognised Bitcoin and other cryptocurrencies during the Budget session and announced a flat 30% tax on earnings produced from it.

The post Just-In: Ecuador Plans To Regulate BTC and Other Cryptos appeared initially on CoinGape.