Regulation of the cryptocurrency market is constantly becoming stricter. Nowadays jurisdictions impose high regulatory and risk management requirements on virtual asset service providers.
Despite this, we always manage to find a solution that suits the client. All the time our team provides research of the market and regulations on various markets to find the best jurisdiction. Recently we have made the global overview of the VASP regulation in the Latam Countries and are ready to share information with our future and existing clients. Today we will look at the features of obtaining a cryptocurrency license in Ecuador.
The law regulating the activities of VASPs
There is a resolution of the Director General of the Ecuador’s Financial and Economic Analysis Unit (UAFE)
VASP regulator
According to the Resolution: Ecuador’s Financial and Economic Analysis Unit (UAFE)
Activities included in VASP services
In accordance with Article 2 of the Resolution:
1. Exchange between virtual assets and legal tender; and exchange of legal tender to virtual assets
2. Exchange between one or more forms of virtual assets
3. Transfer of virtual assets
4. Custody and/or administration of virtual assets or instruments that allow control over virtual assets
5. Participation in and provision of financial services related to the offering of an issuer and/or sale of a virtual asset
6. In general services related to virtual assets
Requirements to the VASP after registration (corporate maintenance, reporting, substance)
According to the Resolution, the regulated entities shall submit the following reports to the UAFE:
1. Report of individual operations and transactions whose amount is equal to or greater than ten thousand United States dollars (USD 10,000) or its equivalent in other currencies; as well as multiple operations and transactions that, as a whole, are equal to or greater than said value, when they are carried out for the benefit of the same person and within a period of thirty (30) days, within fifteen (15) days after the end of each month
2. Suspicious Transaction Reports (ROS), in the case of legal entities, within four (4) days from the date the compliance committee becomes aware of such operations or transactions, and in the case of natural persons, the aforementioned term shall be counted from the date the regulated entity becomes aware of such operations
3. Report its own national and international operations whose amount is equal to or greater than ten thousand dollars of the United States of America (USD 10,000) or its equivalent in other currencies, within fifteen days after the end of each month
VASP must appoint and register with the UAFE a compliance officer who is responsible for submitting the following reports in due time
Other important information
In 2022, the Governor of the Central Bank of Ecuador announced that the Bank is working on a project that will regulate cryptocurrencies. However, so far, no such draft laws have been found in the public domain
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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.
The content of this article is intended to provide a general guide to the subject matter, not to be considered as a legal consultation.
