Stablecoin issuer / redeemer in Cuba

No Specific Classification: Cuban regulations, particularly Resolution 215/2021, do not provide a specific classification for stablecoins as e-money, payment tokens, or securities. Stablecoins are treated simply as a type of "virtual asset" (activo virtual) alongside other cryptocurrencies.

Definition of Virtual Asset: Resolution 215 defines a virtual asset as "a digital representation of value or rights that can be digitally transferred and stored and used for payment or investment purposes, and that can be negotiated or transferred electronically." This broad definition encompasses stablecoins without distinguishing them based on their pegging mechanism.

No Specific Stablecoin Reserve Requirements: The existing resolutions (215 and 216) do not outline specific reserve requirements for stablecoin issuers.

Central Bank Authorization Required: According to Resolution 215/2021, the use of virtual assets in commercial transactions between natural persons and companies, and the provision of virtual asset services, are subject to authorization by the Central Bank of Cuba.

Resolution 216/2021 further details the licensing requirements for Virtual Asset Service Providers (VASPs). Any entity, whether public or private, natural or legal person, that intends to operate with virtual assets, including potentially issuing a stablecoin, must apply for and obtain a license from the BCC. The BCC will grant licenses for specific activities related to virtual assets, such as exchange services, custody, or other related financial services.

This means that setting up a stablecoin operation in Cuba would necessitate full compliance with the VASP licensing regime established by the BCC.

No Specific Stablecoin Redemption Rights: The current Cuban regulatory framework does not explicitly establish specific redemption rights for holders of stablecoins.

Contractual Basis: Any redemption rights would likely depend on the terms and conditions established by the specific issuer, provided that the issuer is licensed and operating legally under BCC authorization. In the absence of specific legislation, general consumer protection laws and contract law would apply, but the crypto framework is silent on this particular aspect.

General Prudence: Any entity authorized to operate with virtual assets would likely be subject to general prudential requirements and capital adequacy rules as determined by the BCC, but these are not tailored to the asset-backing of a stablecoin. The emphasis is on the financial soundness of the service provider, not the specific asset they are managing.

The Banco Central de Cuba (BCC) has authorized 10 firms to provide virtual asset services for international payments and allows micro, small, and medium enterprises (mipymes) to use cryptocurrencies for international payments, with BCC licensing and oversight replacing a blanket prohibition on commercial transactions.

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

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

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

Overview: This is the foundational and comprehensive AML/CFT law in Cuba. It establishes the general obligations for all financial institutions and designated non-financial businesses and professions (DNFBPs), including VASP-like entities, to implement measures to prevent and detect money laundering and terrorist financing. It aligns with FATF Recommendations.

Identification and Verification:

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.

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.

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.

Individuals: Cuba does not have a specific capital gains tax for individuals in the Western sense, nor is there one specifically for cryptocurrency. Profits from speculative trading of virtual assets by individuals are not explicitly taxed under current Cuban law. It is highly unlikely that an individual's occasional profit from selling cryptocurrency would be considered taxable capital gain.

Businesses: If a licensed VASP or any other registered business engages in crypto trading as part of its commercial activity and generates profits, those profits would be subject to the general corporate income tax rate (Impuesto sobre Utilidades) applicable to businesses in Cuba, which is generally 35% for Cuban companies, with variations for foreign investment or specific sectors.

None. As of the latest information, Cuba does not have any specific tax legislation exclusively dedicated to cryptocurrency. The existing legal framework (Resolutions 215 and 216 from the BCC) focuses on regulation, licensing, and control rather than a detailed tax regime for virtual assets.