The South American country of Bolivia has lifted it ban Bitcoin and other cryptocurrencies.
The Central Bank of Bolivia (BCB) announced on June 26 that domestic banks are now allowed to conduct transactions involving cryptocurrencies, marking a significant change in policy from the December 2020 trading ban under Resolution No. N°144/2020, which banned such transactions since December 2020.
This regulatory adjustment is the result of cooperation between the Central Bank of Bolivia, the Financial System Supervisory Authority (ASFI) and the Financial Investigation Unit (UIF).
Bolivia’s move is in line with recommendations from the Latin American Financial Action Task Force (GAFILAT), which is pushing for cryptocurrency regulation.
While cryptocurrencies can now be traded through authorized electronic channels, the Central Bank of Bolivia has reminded the public that cryptocurrencies are not considered legal tender. This means that businesses are not obliged to accept them as a method of payment. The BCB emphasizes this point to ensure that the public understands the limitations and legal status of cryptocurrencies in Bolivia.
In addition to lifting the ban, BCB announced plans to incorporate information about the risks associated with cryptocurrencies into its Economic and Financial Education Plan, which aims to educate the public on how to deal with cryptocurrencies. Manage cryptocurrencies securely and understand the potential risks involved.
The ban in Bolivia was lifted after years of strict regulations. In 2014, the Bolivian Financial System Supervisory Authority issued a resolution banning the use of cryptocurrencies, citing a lack of consumer protection and the potential for money laundering.
Again, in 2022, the central bank of Bolivia banned the banking industry from using, marketing or trading crypto assets, citing the need to protect the public from “risks, scams, fraud” and prevent “economic losses.”
The change in regulations comes amid political and economic turmoil. Bolivia recently experienced a dramatic coup. Soldiers took over La Paz’s central square and rammed armored vehicles into the presidential palace.
Itadori
According to Cryptopolitan
