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Investing.com – The Central Bank of Ecuador plans to issue cryptocurrency-specific regulations later this year. According to statements by Guillermo Avellan, the director of the Central Bank of Ecuador, this will bring more clarity to the cryptocurrency scene in the country, and help prevent crimes such as money laundering.
“The Central Bank is working on a draft regulation of cryptocurrencies, bearing in mind that the Monetary Code establishes that the dollar is the only legal tender in the country.”
Avellan also explained that the new regulations would not make cryptocurrency or any cryptocurrency legal tender, as happened in El Salvador with the approval of the bitcoin law, due to the volatility associated with these assets. . Instead, this piece of regulation would be intended to bring more clarity to the status of crypto in the country.
Regulation regarding cryptocurrencies should address the government’s concern about possible illegal use of these crypto assets. Mr. Avellan said that with the regulations in place, banks will be able to set limits on how these tools are used. There have been instances of actors using cryptocurrencies for money laundering purposes in the country, and these regulations are said to be aimed at combating such uses.
Although the government banned bitcoin in 2014 and launched its own digital token called Dinero Electronico in 2017, the use of cryptocurrencies in the country has steadily grown.
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