The word on Cryptocurrencies and its popularity is now spreading beyond belief with Samoa being the latest country to make a statement about how the new digital economy will work for its residents. The Polynesian country comprising six islands was discovered over 3,500 years ago and is now moving into the new financial generation although a tad carefully at the moment.
Cryptocurrencies Are Managed
The Central Bank of Samoa has just released a statement highlighting that those individuals marketing Cryptocurrencies in the country will face the same policies as a financial institution. This is a big announcement for this small country. The rules will include sticking to the country’s already set in stone regulations on money laundering. This essentially means that those dealing with Cryptocurrencies will need to adhere to stipulations regarding licensing i.e. they will need to obtain the most relevant license for their Cryptocurrencies in Samoa and will also need to report on their Cryptocurrencies just as any other financial institution would in the country. The statement was very firm in the principals it laid out and there were certainly no grey areas to be confused on.
In equal measures, the country has also confirmed – before questions are asked – that Cryptocurrencies are currently not a legal tender in the country. This is another warning to those wishing to dabble that they will need to follow the country’s procedures without fail. The Central Bank has not mixed its words and has clearly suggested that those involved in Cryptocurrencies are taking their own risks. The Bank is not shouldering any of this responsibility whatsoever.
Although this initially seems like negative news this is actually rather positive in the fact that the country has laid down very strict regulations on how Cryptocurrencies are to be used. The Central Bank is very much looking after its country, residents and financial markets at this moment in time. Many other countries in the same position would have put a complete ban on the digital economy. The Central Bank of Samoa has not gone this far but has stipulated the ways in which Cryptocurrencies will be integrated within their financial markets. This is great news especially in the fight against scams and hacking in finance which is a worldwide phenomena right now.
No To Pyramids
Samoa has not been shy about coming forward with its views on the digital economy in the past. Recently there a decision confirmed by the bank stipulating that Onecoin is absolutely not allowed to be traded in the country. Any foreign exchange transactions have been stopped and will in no uncertain terms be accepted. On this occasion, the decision was based on the fact that the bank believed that OneCoin belonged to a pyramid scheme. The bank is very wary about quick rich concepts in the country and the impact that these can have.
Blockchain Is Good
Although the Central Bank of Samoa has been rather strict on its dealings with Cryptocurrencies, there is room for the latest in Blockchain technology. The Bank is fully aware of the benefits of Blockchain and how it can support country. The Bank is looking at this in detail at the moment.