The Central Bank of Cuba has issued rules for licensing virtual asset service providers (VASPs). The rules will go into effect on May 16, 2022.

Both Cuban and foreign natural and legal persons will be able to apply for a license.

The regulator has determined the list of requirements and the list of documents to be provided.

“When evaluating a license application, Banco Central de Cuba considers the legitimacy, likelihood and socio-economic benefit of the initiative, the specifics of the project, the responsibilities and experience of the applicants,” the decision states.

During the licensing process, the regulator will identify the digital assets and types of services VASP can provide. They are not allowed to cease their activities without the permission of the Central Bank. Violations may be penalized according to current banking and financial regulations.

“Virtual asset service provider licenses have been approved for a one-year period with the possibility of renewal for a second year, given the experimental and novel nature of such activities,” the Central Bank said.

Recall that in April 2021, the Cuban government included cryptocurrencies “in the guiding principles of the economic and social policy of the party and the revolution.”

In August, the Central Bank allowed the ability to recognize cryptocurrencies and license VASPs.