Custodial wallet / SaaS in Ecuador

Superintendencia de Compañías, Valores y Seguros (SCVS): The superintendency responsible for regulating companies, securities, and insurance. This body would classify tokens as securities.

Banco Central del Ecuador (BCE): The Central Bank, which has historically taken a very strict stance against cryptocurrencies being used as means of payment.

Security Tokens: These are explicitly designed to represent traditional securities such as shares, bonds, or interests in a fund. They confer rights like dividends, voting rights, profit sharing, or a claim on assets.

Investment Tokens: Tokens that are primarily sold to raise capital for a project or company, where purchasers expect a return on their investment due to the efforts of the issuer or a third party. This includes tokens that grant a share of future revenues, profits, or are marketed with promises of appreciation based on the success of a venture.

Payment Tokens / Cryptocurrencies (e.g., Bitcoin, Ethereum): These are generally not considered "securities" in the traditional sense, but their use as legal tender or alternative currency is explicitly prohibited by the Banco Central del Ecuador. Financial institutions are barred from facilitating transactions with them. This prohibition makes their status in Ecuador highly problematic, regardless of whether they are securities.

Stablecoins: While the SCVS focuses on securities, it's worth noting that the BCE would likely view any stablecoin as problematic if it attempts to function as a means of payment, especially if it is not backed by the USD or if its backing is not transparent and regulated by Ecuadorian authorities.

Registration with SCVS: Mandatory registration of the offering and the issuer with the Superintendencia de Compañías, Valores y Seguros.

Prospectus Requirements: Preparation and submission of a detailed prospectus containing comprehensive information about the issuer, the project, financial statements, risks, and the rights associated with the token.

Information Disclosure: Ongoing periodic and material event disclosures to the SCVS and the public.

Corporate Governance: Compliance with corporate governance standards applicable to public companies.

Broker-Dealer Registration: Entities facilitating the trading of such tokens would need to be registered as broker-dealers (casas de valores) with the SCVS.

Regulated Exchanges: Secondary trading of registered securities typically must occur on regulated stock exchanges (Bolsas de Valores) authorized by the SCVS.

Custody: Custodial services for such tokens would likely require authorization and compliance with specific regulations.

Unidad de Análisis Financiero y Económico (UAFE) - The Financial and Economic Analysis Unit.

Ley Orgánica de Prevención, Detección y Erradicación del Delito de Lavado de Activos y Financiamiento de Delitos (Organic Law for the Prevention, Detection, and Eradication of the Crime of Money Laundering and Financing of Crimes)

Resolución No. UAFE-DG-2022-0001 (Resolution No. UAFE-DG-2022-0001)

Identification and Verification of Customer Identity:

Beneficial Ownership (BO) Identification:

Purpose and Intended Nature of the Business Relationship:

Continuously monitor customer transactions and activities to ensure they are consistent with the VASP's knowledge of the customer, their business, and risk profile.

Develop and implement a risk assessment framework to identify, assess, and mitigate ML/TF risks.

Apply enhanced due diligence (EDD) for higher-risk customers (e.g., Politically Exposed Persons - PEPs, customers from high-risk jurisdictions, complex or unusually large transactions, new technologies and products that favor anonymity).

Reporting Obligation: Any transaction, attempted transaction, or activity that raises suspicion of money laundering or terrorist financing, regardless of the amount, must be reported.

No Tipping-Off: VASPs and their employees are prohibited from disclosing to the customer or any third party that a report has been or will be submitted to UAFE.

Internal Policies: VASPs must have internal policies and procedures to identify, evaluate, and report suspicious transactions.

Transaction Records: All details of virtual asset transactions (e.g., amount, type of virtual asset, sender/recipient addresses, timestamps, fiat currency equivalents, transaction hashes).

Legal Basis: Resolution 014-2014-M (or its subsequent reiterations) issued by the Monetary and Financial Policy and Regulation Board (Junta de Política y Regulación Monetaria y Financiera) and implemented by the Central Bank of Ecuador (BCE). This resolution, dated July 28, 2014, effectively banned private cryptocurrencies, stating that they are not recognized as legal tender and cannot be used as a means of payment within the country.