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Legality of Cryptocurrencies in the Dominican Republic

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Recently, El Salvador became the first country of the world in adopt Bitcoin (a cryptocurrency) as a type de currency official. Granting him force liberating for the paid by obligations public and private. The rise and success of this currency Interactive ha obliged to the governments of the world adopt policies against or in favor of this novel instrument de paid, which, without a doubt, duda, is transforming traditional payment methods and forms.

La Commission Federal of Stores of the United States defines cryptocurrency as "money digital." That means there are no physical coins or bills—everything is in store— . You can transfer cryptocurrency to someone on the internet without an intermediary, such as a boothThe most well-known cryptocurrencies are Bitcoin and Ether, but new ones continue to be created.

A cryptocurrency is a asset digital that uses cryptographic encryption to to guarantee su ownership and ensure the integrity of transactions, and control the creation of additional units, that is, prevent someone from making copies as we would do, for example, with a photo. These coins do not exist in crafts Physical: they are stored in a portfolio digital.

 

Case of the Republic Dominican Republic

 

El central bank of the Republic Dominican Republic (BCRD), in its condition of unique being issuer of banknotes and coins spirit circulation national, in accordance with the provisions of the Constitution of the Republic and Act Monetary and Financial, No. 183-02 of November 21, 2002, warned that the different types of cryptocurrencies, as well as other virtual currencies and assets, They do not have the support of this institution ni with the authorization of the Monetary Board for its issue and use as a means of paid to carry out transactions of any kind; that is, they do not have legal tender ni force liberatory of obligations public or private throughout the territorio national.

In this regard, the aforementioned had spoken out entity monetary policy in 2017, through its resolution number 002-2017, by virtue of which the «institution has been closely observing the evolution of level world of use and behavior of virtual assets, such as Bitcoin, Litecoin and Ethereum, as well as the recent appearance of some of them in the Dominican market through social networks and reports on their spread in some media outlets.

For such reason, we comply with the must to warn financial intermediation entities (EIF), remittance agents and cultural, , to the entities of the market of values, to the entities of the insurance market, to the economic sectors and to the public In general, on the risks associated with the acquisition This type of virtual assets with the intention to use them as an investment or as a means of paidIn our country.

La Constitution of the Republic Dominican Republic, in its articles 228 to 230, consecrates the Weight Dominican as the monetary unit national; also designates the central bank as the sole issuer of banknotes and coins in circulation, and establishes the force liberation of the Weight Dominican, attributing to this currency full effects de legal tender for all the obligations public and private throughout the territorio national, as also provided by the article 24 of the Act Monetary and Financial No. 183-02 of November 21, 2002.

This indicates that the aforementioned virtual assets, such as /// de Bitcoin, Litecoin, Ethereum, among others, do not have the support of the central bank and therefore do not enjoy protection legal that grants the framework legal of the Republic Dominican. From the same way, cannot be considered as foreign currencies under the regime exchange rate, since they are not issued or under the control of any other central bank extranjero, reason for which they do not receive the guarantees or security offered by foreign exchange intermediation, nor the spirit convertibility enshrined in articles 28 and 29 of the Act Monetary and Financial.

The virtual assets mentioned or any other, are not a currency de legal tender and therefore do not enjoy the support of the State, its effectiveness or its use As a means of paid In our economy it cannot be guaranteed, nor any person is in the legal obligation to accept them as crafts de paid de goods or services provided. With this clarification we want to avoid confusion among users of the work financial and the citizenship In general, about any operación that is intended to be carried out using this scheme.

We wish to highlight that the central bank of the Republic Dominican Republic does not regulate, supervise, or guarantee in any way these assets as a means of paid by System of Payments in the Republic Dominican Republic. Consequently, the regulated institutions of the work support national are not authorized to use or carry out operations with them, within the System of Payments of the Republic Dominican.

same crafts, if one of these institutions were involved, directly or indirectly, in the marketing or use of any nature of these virtual assets, could be sanctioned under the provisions of the Act Monetary and Financial, in terms of the participación in prohibited operations.

All person to acquire this type de asset Interactive, be it way of investment or with the interest to use it as a means of paid, as well as anyone who accepts them as crafts de paid in business transactions, he will do it on his own risk, as well as the central bank of the Republic Dominican Republic complies with warning that it would be incurring in operations not contemplated by the current banking regulations or in the mechanisms of paid authorized by the Monetary Board.

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