The Central Bank of Ecuador is planning to come up with a framework to regulate Cryptocurrencies by the end of this year. Guillermo Avellan, the manager of the Central Bank of Ecuador reportedly said that this will give more clarity to the cryptocurrency investors and also help to prevent crimes related to money laundering.
Will BTC be a legal tender in Ecuador?
The Central Bank of Ecuador is all set to prepare and implement cryptocurrency-specific regulations in the country. Talking with Bloomberg, Guillermo Avellan, manager of the Central Bank said that they are planning to expand the financial inclusion of Ecuadorians and regulate the use of cryptocurrencies in the country.
Guillermo Avellan further explained that the new regulation 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 country. In the first quarter of 2022, the Central Bank will formulate a regulation on the use of cryptocurrencies in Ecuador so that holders can know what the limits are, despite the fact that the dollar is the only legal tender in the country.
Avellan did not give specific dates regarding Crypto regulations, however, he suggested that they will be done 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 reviewed and approved between the second and third quarters of the year by the Monetary Board, said Guillermo Avellan
- Global adoption of Cryptocurrency
The cryptocurrency ecosystem has witnessed a huge spike in adoption all around the globe. El Salvador on 25th November 2022, legalized any cryptocurrency, including bitcoin, for use as a legal tender.
Countries like the U.S. and Canada have legally permitted trading in virtual currencies, while others like China and Russia have prohibited it by the law. Recently, India recognised Bitcoin and other cryptocurrencies during the Budget session and announced a flat 30% tax on income generated from it.