Key Points:
Bolivia's crypto ban was lifted, allowing transactions through authorized channels, but they remain not legal tender.
The update, effective June 26, involved the Central Bank, Financial Supervisory Authority, and Financial Investigations Unit.
The Central Bank will educate the public on cryptocurrency risks through its Economic and Financial Education Plan.
According to Cryptopolitan, Bolivia's crypto ban has been officially lifted, effective June 26.
Bolivia's Crypto Ban Was Lifted
The Central Bank of Bolivia (BCB) announced this regulatory change, reversing Board Resolution N°144/2020, which prohibits cryptocurrency transactions since December 2020. The move aligns Bolivia with regional trends, as neighboring Argentina has also embraced digital assets.
The new regulations permit banks to conduct cryptocurrency transactions through authorized electronic channels. However, the BCB has emphasized that cryptocurrencies are not recognized as legal tender. This means that while digital assets can be used for transactions, they are not considered official currency by the Bolivian government, and there is no obligation for businesses to accept them as payment.
This regulatory update results from a collaborative effort between the BCB, the Financial System Supervisory Authority (ASFI), and the Financial Investigations Unit (UIF). It aligns with recommendations from the Latin American Financial Action Task Force (GAFILAT), which has urged Bolivia to address the challenges posed by the digital financial environment.
Public Education on Cryptocurrency Risks Announced
Despite the newfound acceptance of Bitcoin and other cryptocurrencies, the BCB remains cautious. It plans to incorporate information on the risks associated with cryptocurrency trading into its Economic and Financial Education Plan. This initiative aims to educate the public on the safe handling of digital assets, underscoring the importance of being aware of potential risks.
The lift on the Bolivia's crypto ban marks the end of stringent regulations that began in 2014 when Bolivia's Financial System Supervision Authority prohibited cryptocurrency use due to concerns over consumer protection and money laundering. In 2022, the BCB further restricts the banking sector from engaging with cryptocurrencies to prevent risks, frauds, and economic losses.
With this change, Bolivia joins a growing list of countries adapting to the evolving landscape of digital finance and cross-border money exchange.
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