Custodial wallet / SaaS in Cuba

Resolution 215/2021 of the Banco Central de Cuba (BCC), published in Official Gazette No. 73 Ordinary of 2021.

Resolution 216/2021 of the Banco Central de Cuba (BCC), also published in Official Gazette No. 73 Ordinary of 2021.

Resolution 215/2021 regulates the use of virtual assets in Cuba. It defines virtual assets and states that their use for transactions between natural and legal persons is authorized by the BCC, provided they are issued by central banks or monetary authorities, or otherwise explicitly approved by the BCC. It also explicitly prohibits the use of virtual assets issued by private entities without prior authorization from the BCC. Entities operating with virtual assets must obtain a license from the BCC.

Resolution 216/2021 initially authorized financial institutions to use virtual assets under BCC supervision with prior authorization, but subsequent implementation has moved to a concrete licensed framework where only 10 state-owned and mixed-enterprise firms have been granted licenses, excluding regular banks and non-bank financial institutions, and accompanied by new restrictive conditions including unilateral account freezing powers.

Cuba does not have a distinct "crypto custodial license" in the sense of a specialized license solely for custody services.

However, Resolution 215/2021 mandates that any legal person (entity) operating with virtual assets (which would include providing custody-like services) must obtain prior authorization from the Banco Central de Cuba.

Resolution 216/2021 further specifies that existing financial institutions (banks, non-bank financial institutions) must also obtain specific authorization from the BCC to operate with virtual assets. This implies that if a Cuban bank were to offer crypto custody, it would need this authorization.

The authorization process involves proving economic-financial solvency, demonstrating expertise and technological infrastructure, and adhering to BCC guidelines.

There are no explicit crypto-specific rules mandating the segregation of client virtual assets from the operating assets of the custodian or the personal assets of the entity in the Cuban regulations (Resolution 215/216).

Evidence fact cu.custody.there-are-no-explicit-crypto-specific-0 not found (may have been renamed).

There are no explicit mandates or requirements for cold storage (offline storage of private keys) in the Cuban regulations.

The term "qualified custodian" as understood in jurisdictions like the US (e.g., under the SEC's Custody Rule) is not explicitly defined in Cuban virtual asset regulations.

Ley No. 143/2021 (Law 143/2021) – Ley de Prevención y Confrontación del Lavado de Activos, el Financiamiento al Terrorismo y a la Proliferación de Armas de Destrucción Masiva

Resolución No. 215/2021 del Banco Central de Cuba (BCC)

Resolución No. 216/2021 del Banco Central de Cuba (BCC)

Legalizes the use of virtual assets for financial transactions between individuals and legal entities, but only those authorized by the BCC.

Requires service providers dealing with virtual assets to obtain a license from the BCC.

Stresses compliance with AML/CFT regulations.

Risk-Based Approach (RBA): Implement a risk-based approach, meaning that the intensity of CDD measures should be commensurate with the level of ML/TF risk identified.

Identification and Verification:

Obtain and verify the identity of the customer and, where applicable, the beneficial owner. This includes:

For Individuals: Full legal name, date of birth, address, nationality, national identity number (e.g., ID card, passport), and occupation. Verification must be from reliable, independent sources (e.g., official documents).

For Legal Entities: Legal name, legal form, address of the registered office, names of directors/senior management, beneficial owners, and proof of existence (e.g., articles of incorporation, business registration certificate).

Purpose and Nature of the Business Relationship: Understand the purpose and intended nature of the business relationship or transaction.

Ongoing Monitoring: Conduct ongoing monitoring of the business relationship and transactions undertaken by customers to ensure consistency with the VASP's knowledge of the customer, their business, and risk profile, including the source of funds.

Simplified Due Diligence (SDD): May be applied in low-risk situations.

Enhanced Due Diligence (EDD): Must be applied for higher-risk categories, such as:

Lack of Transparency: The Cuban government is not known for its transparency regarding internal enforcement actions, especially against individuals or smaller, private entities.

Nature of the Economy: In a state-controlled economy, significant independent financial operations (like an unregistered crypto exchange) would likely be shut down or absorbed without a public trial or detailed announcement.

Central Bank of Cuba (BCC) holds expanded enforcement powers, including unilateral authority to freeze bank accounts without notice and suspend Visa and Mastercard transactions.