Stablecoin issuer / redeemer in Guatemala

Banco de Guatemala (Banguat) Comunicado de Prensa (June 23, 2021): Banguat issued a press release titled "Banco de Guatemala advierte sobre riesgos de las criptomonedas" (Banco de Guatemala warns about risks of cryptocurrencies). This communiqué explicitly states:

Cryptocurrencies (including stablecoins) are not legal tender in Guatemala. The only legal tender is the Quetzal (GTQ), as defined by the Monetary Law.

They are not issued or backed by a central bank or government.

They lack regulatory and supervisory oversight, offering no guarantees or legal protection to users.

Financial entities supervised by the SIB are prohibited from carrying out operations with cryptocurrencies or offering products related to them.

Financial entities supervised by SIB are prohibited from engaging with cryptocurrencies.

No Formal Classification: As there is no specific legislation for stablecoins or cryptocurrencies, they are not formally classified as e-money, payment tokens, or securities under a dedicated crypto regulatory framework.

Banguat's View: Banguat generally treats all cryptocurrencies, including stablecoins, as high-risk, unregulated digital assets that exist outside the traditional financial system.

Existing Laws: If a stablecoin were structured in a way that mimicked existing financial instruments (e.g., if it represented a share in a company or a debt instrument), existing securities laws (e.g., Ley del Mercado de Valores y Mercancías - Decree No. 34-96) might theoretically apply, but this has not been explicitly interpreted or applied to stablecoins by Guatemalan authorities. However, the Banguat's directive prohibiting supervised financial entities from dealing with them largely bypasses this.

None: Since stablecoins are not regulated, there are no prescribed reserve requirements for issuers in Guatemala. Any stablecoin issuer operating in Guatemala would do so without any official oversight regarding their reserves.

None: There is no specific licensing regime for stablecoin issuers in Guatemala. Entities issuing stablecoins would not be operating under a financial license provided by Banguat or SIB.

Not Protected: As stablecoins are unregulated and not recognized within the formal financial system, there are no legally enforceable redemption rights protected by Guatemalan financial law. Users would rely solely on the terms and conditions provided by the private issuer, with no recourse to national regulatory bodies for enforcement.

Stablecoins are not legal tender.

They are not regulated, supervised, or guaranteed by the state.

No specific classification, reserve requirements, issuer licensing, or redemption rights exist under Guatemalan law.

No specific cryptocurrency license is required.

General Business Registration: Any company operating in Guatemala, regardless of its specific industry, must be legally constituted and registered with the Registro Mercantil General de la República (General Mercantile Registry of the Republic).

Local Presence: Any company wishing to operate legally in Guatemala (even without a specific crypto license) would need to establish a legal entity (e.g., a corporation) registered with the Registro Mercantil, which implies having a registered office and legal representation in the country.

Constituition of a legal entity: Typically a corporation (Sociedad Anónima) through a public deed with a notary.

Registration with Registro Mercantil: Submit the public deed and other required documents (e.g., identification of shareholders, legal representative) to the General Mercantile Registry.

Tax Registration: Obtain a Taxpayer Identification Number (NIT) from the Superintendencia de Administración Tributaria (SAT).

Ley contra el Lavado de Dinero u Otros Activos (Decree No. 67-2001) and its Regulations: While this law does not explicitly mention "virtual assets" or "cryptocurrencies," it applies to "obligated entities" (e.g., banks, financial institutions, certain non-financial businesses and professions) involved in financial transactions.

Indirect Applicability: If a VASP facilitates fiat-to-crypto or crypto-to-fiat transactions, the fiat portion of these transactions would be subject to the existing AML/CFT framework. This means performing KYC (Know Your Customer) on users, monitoring transactions for suspicious activity, and reporting to the Special Verification Intendancy (IVE) – a unit within the SIB.

FATF Recommendations: Guatemala is a member of the Financial Action Task Force of Latin America (GAFILAT), which adheres to FATF recommendations. FATF Recommendation 15 specifically calls for the regulation of VASPs for AML/CFT purposes. While Guatemala has not fully implemented this recommendation for VAs, it is under international pressure to do so. Therefore, future legislation is likely to include specific VASP AML/CFT obligations.

Ley Contra el Lavado de Dinero u Otros Activos (Decree 67-2001): This law establishes the framework for preventing and prosecuting money laundering. It defines "supervised entities" which, by interpretation and international standards (FATF), should include VASPs, particularly those with a fiat gateway.

Customer Due Diligence (CDD/KYC): Identifying and verifying the identity of customers, understanding the nature of their business, and assessing risks.

Suspicious Transaction Reporting (STR): Reporting any suspicious transactions to the IVE. This would include transactions linked to sanctioned entities or high-risk jurisdictions.

Sanctioned Entity Screening: Screening customers and transactions against OFAC, EU, UN, and any other relevant domestic (e.g., PEP lists, if maintained by IVE) or international sanctions lists.

Record-Keeping: Maintaining records of customer identification data, transaction data, and STRs for a specified period (typically 5 years).

Internal Controls: Establishing and maintaining adequate internal controls, policies, and procedures to prevent money laundering and terrorist financing.

Risk Assessment: Conducting regular risk assessments to identify and mitigate ML/FT risks, including those related to sanctions.

"Travel Rule" (indirectly): While not explicitly codified for crypto in Guatemala, FATF Recommendation 16 (Travel Rule) requires VASPs to obtain and transmit originator and beneficiary information for virtual asset transfers. This is a critical component for sanctions screening in cross-border crypto transactions.

Comprehensively Sanctioned Jurisdictions: VASPs must prohibit transactions with or involvement in countries subject to comprehensive OFAC sanctions (e.g., Cuba, Iran, North Korea, Syria, regions of Ukraine like Crimea, Donetsk, Luhansk).

High-Risk Jurisdictions: Even outside of explicit sanctions, FATF identifies high-risk jurisdictions. VASPs should implement enhanced due diligence for transactions involving these areas.

Rate: The standard rate for capital gains from the sale of assets is 10% on the net gain.

Territoriality Principle: Guatemala applies the territoriality principle, meaning that generally only income sourced within Guatemala is subject to Guatemalan income tax. However, the source of income from digital activities can be complex to determine and may require careful analysis.