The law regulating the activities of VASPs
RESOLUCIÓN 215/2021
RESOLUCIÓN 89/2022
VASP regulator
Central Bank of Cuba (“BCC”)
Activities included in VASP services
Licenses for cryptocurrencies in Cuba are given to firms or individuals involved in next-mentioned commercial activities:
– crypto exchange transactions for fiat, where cryptocoins have status of legal tender;
– cryptocurrencies exchange among themselves;
– crypto-transfers;
– management and storage of crypto or other remedies by which VA can be controlled;
– services of financial nature or intermediation in such services, if they have connection with cryptoassets issuance or sales.
VASP licence in Cuba doesn’t mean digital fiat, securities and others being used in ordinary banking institutions, they are controlled by separate provisions designated by the Central Bank.
VASP registration procedure for a local company
Pursuant to Article 5 of the Resolution 89/2022, for authorisation as a VASP, the applicant shall attach the following documents to the application letter addressed to the Central Bank of Cuba :
– Corporate purpose and bylaws that contemplate the activities foreseen in this Resolution and business proposal with a description of the operating model and virtual assets it proposes, platform and cryptographic standard it uses.
– The structure of the governing bodies and corporate organisation.
– The infrastructure and internal controls, including operational, accounting, security and cyber-security systems, customer protection, office facilities, as well as procedures relating to due diligence, risk management, including, but not limited to, money laundering, terrorist financing and terrorist financing, and the procedures for the management of risks, including, but not limited to, money laundering and terrorist financing.
– Initial capital for the development of authorised activities or operations. The Central Bank of Cuba may differentiate the amount according to the types of activities and risks.
– Risk and liability disclosure policies:
– For the conduct of operations, which must include the concepts and amounts of the fees and commissions it will apply to its clients and any other charges or withholdings;
– Publish warnings regarding the use of the interface, website or electronic or digital means of communication it uses, in compliance with the provisions in force.
– Procedures related to the system for preventing and combating money laundering, financing of terrorism and the proliferation of weapons of mass destruction, which includes, inter alia, the obligation
– to apply due diligence and obtain, retain and transmit information on the originator and beneficiary, immediately and securely when carrying out virtual asset transfers, when there is reasonable suspicion from the characteristics of the participants or the circumstances of the transaction that an illicit transaction is involved;
– obtain, retain and transmit originator and beneficiary information, immediately and securely, for transfers of virtual assets that exceed the threshold of one thousand US dollars or its equivalent in freely convertible currency or Cuban pesos; and
– issue suspicious transaction reports and such supplementary information as may be requested by the Directorate General of Financial Operations of the Central Bank of Cuba.
– any other document or information established by Cuban law and the Central Bank of Cuba.
In order to obtain the licence, it is an indispensable requirement to have the approval of the Directorate General for Financial Operations Investigation of the Central Bank of Cuba on the procedures presented by the applicant in compliance with the provisions of Article 5.
Authorization of VASP from another state to provide services in the jurisdiction
If it is a natural person with or without a licence as a VASP in another jurisdiction in which it has its place of business, it applies for a licence to operate in the Republic of Cuba.
A legal person that has its place of business in another jurisdiction applies for a licence to operate in the Republic of Cuba, if it is a provider of virtual asset services in that jurisdiction; exceptionally, in the interest of the State, the Central Bank of Cuba may grant a licence without complying with this requirement.
Legal entities domiciled in the national territory apply for a licence to operate in Cuba, even if they hold licences in another jurisdiction.
To obtain a licence from the Central Bank of Cuba, an applicant from another state must submit the same documents as required for a local company, as well as provide evidence of approval or certification of registration by the regulatory authorities of the country of origin, if applicable in accordance with the legislation of the country of origin.
Documents submitted to the Central Bank of Cuba drafted in a foreign language shall be accompanied by their corresponding translation into Spanish, with a certified note issued by the persons or entities legally authorized for this purpose.
In order for notarial documents or certifications issued by a notary public or foreign official to be effective in the national territory, they must be duly legalised before the Cuban consular official in the country of origin, at the Ministry of Foreign Affairs of the Republic of Cuba and notarised before a notary public in Cuba.
Certificates of validity and validity issued by the commercial registers are exempt from the legalisation and notarisation process, as they are considered subject to expiry.
Requirements to the VASP after registration (corporate maintenance, reporting, substance)
VASPs, once approved by the Central Bank of Cuba, are obliged to comply with Decree-Law 317, ‘On preventing and combating money laundering, the financing of terrorism and the proliferation of weapons of mass destruction’, and its complementary regulations, by virtue of which they are obliged to submit working procedures to the General Directorate for the Investigation of Financial Operations, as part of the documentation mentioned in Article 5.
VASPs should be registered in the Register of Regulated Entities of the Strategy for the prevention, detection and combating of money laundering, the financing of terrorism and the proliferation of arms or other related conduct of similar gravity. The Register is located in the Directorate General for the Investigation of Financial Operations and registration is requested within the time limit laid down in the licence.
VASPs operating under a licence request authorisation from the Central Bank of Cuba for any change in their operations, ownership structure or any other change.
VASPs are obliged to keep accounts of their operations in accordance with the accounting standards issued by the Ministry of Finance and Prices on the basis of the approved Cuban Financial Reporting Standards (RESOLUCION No. 235/2005).
For the preparation and presentation of financial statements, VASPs take into account the regulations issued for this purpose by the accounting standards issued by the Ministry of Finance and Prices. The financial year closes annually at the beginning and end of the calendar year.
The VASPs send the Central Bank of Cuba the financial statements in the terms, terms and conditions established by the Central Bank of Cuba.
VASPs comply with the information requirements, internal control and risk management standards, and others established by the Central Bank of Cuba.
Liability provided for the activities of a VASP without local registration
The parties who operate without a licence from the Central Bank of Cuba, incur administrative liability punishable in accordance with the provisions of Decree-Law 363, ‘On administrative violations of banking, financial and foreign exchange provisions’, of 14 September 2018, without prejudice to any criminal proceedings that may be applicable.
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Manimama Law Firm provides a gateway for the companies operating as the virtual asset wallet and exchange providers allowing to enter to the markets legally. We are ready to offer an appropriate support in obtaining a license with lower founding and operating costs. We offer KYC/AML launch, support in risk assessment, legal services, legal opinions, advice on general data protection provisions, contracts and all necessary legal and business tools to start business of virtual asset service provider.
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