Ecuador Central Bank: No Crypto Ban, But Regulation Needed
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Loading... - Maria Bost
- 20 Sep 2024
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The General Manager of the Ecuadoran Central Bank, Guillermo Avellán, has clarified that cryptocurrency is not illegal in the country, but emphasized the need for regulation to protect investors and promote innovation.
Avellán's comments come in response to a recent statement from the Central Bank of Ecuador (BCE) that warned citizens about the volatility of crypto. The statement had sparked fears of a potential ban on crypto trading, but Avellán has reassured that crypto is "not prohibited" in Ecuador.
However, Avellán stressed that Ecuador needs a law to regulate investment in cryptoassets, citing the need to protect investors, promote innovation, and strengthen dollarization. He warned that crypto could pose risks if commercialized outside the legal framework.
Ecuador has faced criticism from international bodies for its lack of crypto regulation. The recent surge in popularity of Worldcoin (WLD) in the country has drawn attention from regulatory bodies, including the Superintendency of Companies, Securities, and Insurance.
The Superintendency has expressed concerns about irregular activity carried out by Worldcoin and encouraged citizens not to hand over their biometric data. Worldcoin's popularity has led to regulatory pushback in other Latin American countries, such as Chile, where the operator has had to change its data collection practices.
The Ecuadoran government will need to balance the need for regulation with the growing demand for cryptoassets. As the country navigates this complex issue, it will be important to ensure that any regulatory framework is fair, effective, and protects the interests of all stakeholders.
