Is Crypto Legal in Cuba?

Ley No. 143/2021 (Law 143/2021) – Ley de Prevención y Confrontación del Lavado de Activos, el Financiamiento al Terrorismo y a la Proliferación de Armas de Destrucción Masiva

Cuba's legal framework for anti-money laundering, counter-terrorism financing, and non-proliferation is now implemented through specific regulations like Resolution 86/2026, rather than solely as a single law with the exact name cited.

Overview: This is the foundational and comprehensive AML/CFT law in Cuba. It establishes the general obligations for all financial institutions and designated non-financial businesses and professions (DNFBPs), including VASP-like entities, to implement measures to prevent and detect money laundering and terrorist financing. It aligns with FATF Recommendations.

Source: Published in the Gaceta Oficial de la República de Cuba.

URL (Gaceta Oficial): https://www.gacetaoficial.gob.cu/ (You would search for "Ley 143/2021" on this site).

Resolución No. 215/2021 del Banco Central de Cuba (BCC)

Resolution 215/2021 has been supplemented or superseded by a newer law granting the Central Bank of Cuba and the Ministry of the Interior joint authority to freeze financial accounts without warning.

Overview: This is the cornerstone regulation specifically for virtual assets. It establishes the rules for the use of certain virtual assets in commercial transactions, their licensing, and supervision in Cuba. It defines virtual assets and virtual asset service providers (VASPs). It explicitly states that the BCC will grant licenses to VASPs that operate in Cuba. It also emphasizes that operations with virtual assets must comply with AML/CFT rules.

Legalizes the use of virtual assets for financial transactions between individuals and legal entities, but only those authorized by the BCC.

Requires service providers dealing with virtual assets to obtain a license from the BCC.

Prohibits the use of virtual assets that are not authorized by the BCC.

Stresses compliance with AML/CFT regulations.

URL (Banco Central de Cuba): https://www.bc.gob.cu/ (Look for the resolution in their legal norms section).

Resolución No. 216/2021 del Banco Central de Cuba (BCC)

Name: Resolution 216/2021 of the Central Bank of Cuba.

Overview: This resolution complements Resolution 215/2021 by detailing the licensing process for virtual asset service providers (VASPs). It specifies the requirements, procedures, and conditions that legal entities must meet to obtain a license to operate with virtual assets in Cuba.

Obtain and verify the identity of the customer and, where applicable, the beneficial owner. This includes:

For Individuals: Full legal name, date of birth, address, nationality, national identity number (e.g., ID card, passport), and occupation. Verification must be from reliable, independent sources (e.g., official documents).

For Legal Entities: Legal name, legal form, address of the registered office, names of directors/senior management, beneficial owners, and proof of existence (e.g., articles of incorporation, business registration certificate).

Purpose and Nature of the Business Relationship: Understand the purpose and intended nature of the business relationship or transaction.

Ongoing Monitoring: Conduct ongoing monitoring of the business relationship and transactions undertaken by customers to ensure consistency with the VASP's knowledge of the customer, their business, and risk profile, including the source of funds.

Risk-Based Approach (RBA): Implement a risk-based approach, meaning that the intensity of CDD measures should be commensurate with the level of ML/TF risk identified.

Simplified Due Diligence (SDD): May be applied in low-risk situations.

Enhanced Due Diligence (EDD): Must be applied for higher-risk categories, such as:

Customers from high-risk geographic areas (as identified by FATF or national authorities).

Complex, unusual, or large transactions.

Customers whose beneficial owners are not clearly identified.

Cross-border correspondent relationships (if applicable to VASP activities).

Obligation to Report: VASPs must establish systems to detect and report any transaction or activity that they suspect to be related to money laundering, terrorist financing, or proliferation financing.

Reporting Body: The reports are made to the Unidad de Inteligencia Financiera (UIF), which is Cuba's Financial Intelligence Unit. The UIF operates under the Fiscalía General de la República de Cuba (Attorney General's Office of the Republic of Cuba).

Details of the customer(s) involved.

Description of the suspicious transaction(s) or activity.

The U.S. government may not limit the amount of remittances to Cuba, but licensing requirements still apply and likely necessitate reporting of transaction amounts and dates.

No Tipping-Off: VASPs and their employees are prohibited from disclosing to the customer or any third party that a STR has been filed or that an investigation is underway.

CDD Information: All records obtained during the CDD process (identification documents, verification documents, beneficial ownership information).

For transactions authorized under Cuba-related General License 1 (as of May 7, 2026), the prior detailed record-keeping requirements for all transaction data have been superseded; sanctions focus is on the Cuba Restricted List rather than universal transaction records.

STRs: Copies of all suspicious transaction reports filed, along with any supporting documentation and internal analysis.

Internal Policies and Procedures: Records related to their AML/CFT policies, procedures, risk assessments, and training programs.

Retention Period: Records must generally be maintained for a minimum period (typically 5 years) after the business relationship ends or after the date of the transaction. This duration would be specified in the implementing regulations of Law 143/2021.

Role: The BCC is the primary regulator and licensing authority for virtual asset service providers. It is responsible for:

Granting licenses to VASPs to operate in Cuba (per Resolution 215/2021 and 216/2021).

Supervising the operational compliance of licensed VASPs.

Cuba has already enacted the 2026 Law on Virtual Asset Business, which includes regulations and guidelines for virtual assets, rather than merely planning to issue further regulations.

Unidad de Inteligencia Financiera (UIF) / Financial Intelligence Unit (FIU)

Role: The UIF, under the Fiscalía General de la República de Cuba, is responsible for:

Receiving, analyzing, and disseminating suspicious transaction reports (STRs) from obliged entities, including VASPs.

Collaborating with other national and international authorities in the fight against ML/TF.

URL (Fiscalía General de la República): https://www.fgr.gob.cu/ (The UIF's specific portal might not be publicly listed, but it operates under the Attorney General's Office).

U.S. Sanctions (OFAC): It is crucial to note that Cuba remains under extensive U.S. sanctions (administered by the Office of Foreign Assets Control - OFAC). Any international VASP considering operating in or with Cuba must carefully assess these sanctions, as engaging in transactions involving Cuba could lead to severe penalties from U.S. authorities, regardless of Cuban domestic regulations.

Evolving Landscape: The regulatory landscape for virtual assets is still developing globally, and Cuba's framework is relatively nascent. VASPs should be prepared for potential updates or additional guidance.

Practical Implementation: While the laws and resolutions establish the framework, the practical implementation and enforcement details may continue to evolve.

Authorization: Any activity involving virtual assets for commercial or financial purposes must be authorized by the Central Bank of Cuba.

Monetary Sovereignty: Protecting the Cuban peso and the national financial system.

Financial Stability: Ensuring crypto-assets do not disrupt the economy.

Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT): All authorized activities must comply with these measures.

Decreto Ley 21 de 2021: "Sobre la Utilización de Criptoactivos en la República de Cuba" (Decree-Law 21 of 2021 on the Use of Crypto-assets in the Republic of Cuba). This decree establishes the legal framework for the use of crypto-assets in Cuba.

Resolución 215 de 2021 del Banco Central de Cuba: This resolution details the licensing requirements for virtual asset service providers (VASPs) and the operational rules for using virtual assets in the national financial system.

Example Search Term: "Decreto Ley 21 de 2021 Gaceta Oficial República de Cuba"

Resolución 215/2021 del Banco Central de Cuba: Similar to the Decree-Law, this would be published in the Gaceta Oficial.

Example Search Term: "Resolución 215 de 2021 Banco Central de Cuba Gaceta Oficial"

Sometimes the BCC itself publishes these on its website, though direct links can change. A general search on the BCC's site might be necessary: https://www.bc.gob.cu/

Nature of the Asset: Is it a "virtual asset" as defined by the law? (Digital representation of value that can be digitally traded or transferred and used for payment or investment purposes, excluding digital representations of fiat currencies, securities, or other financial assets already covered by other laws).

The purpose of a transaction is now scrutinized for links to Cuba even when the commercial, financial, or investment activity occurs entirely outside Cuban territory, due to secondary sanctions under Executive Order 14404.

Registration/Licensing Requirement: Any natural or legal person wishing to provide services related to virtual assets to individuals or entities in Cuba must obtain a license from the Central Bank of Cuba (BCC).

Covered services for hotel and financial transaction operations in Cuba are being withdrawn or suspended due to U.S. sanctions, including Meliá hotels closing and Visa/Mastercard transactions being suspended.

Operating virtual asset exchanges is a licensed, regulated activity under Cuba's 2021 framework.

Providing custody of virtual assets.

Cuba has approved a draft law governing virtual assets, indicating regulation of transferring virtual assets is being established.

Operating payment processing systems using virtual assets.

Issuing virtual assets that function as a means of payment or investment (though this is more implied than explicitly detailed for private issuers).

Authorized Platforms: Secondary trading of virtual assets must occur through licensed Virtual Asset Service Providers (VASPs) that have obtained authorization from the BCC.

AML/CFT Compliance: All licensed platforms are subject to strict AML/CFT regulations, including customer due diligence (KYC), transaction monitoring, and suspicious activity reporting.

No Specific "Security Token" Trading Rules: There are no distinct rules for the secondary trading of "security tokens" as opposed to other virtual assets. All regulated trading activities fall under the general VASP licensing and compliance framework.

Unauthorized Operation of Virtual Asset Services: The most likely enforcement scenarios involve individuals or entities operating crypto exchanges, transfer services, or other VASP functions without the required BCC license.

Use of Crypto for Illicit Activities: Enforcement would also target the use of crypto-assets for money laundering, sanctions evasion (especially given Cuba's context), or other criminal activities.

Nature of Penalties: Decree-Law 21/2021 establishes that non-compliance with its provisions or those of the BCC resolutions can lead to administrative penalties, fines, and potentially criminal charges if the activity constitutes a crime under Cuban law (e.g., operating an illegal financial institution, money laundering).

Resolución 215/2021 del Banco Central de Cuba (Resolution 215/2021 of the Central Bank of Cuba)

Summary: This resolution formally recognizes virtual assets and establishes the regulatory framework for their use in Cuba. It outlines that:

The BCC will authorize the use of virtual assets by service providers.

Only virtual assets issued by central banks (CBDCs) and authorized by the BCC can be used in commercial transactions between legal entities in Cuba.

Individuals (natural persons) are permitted to use virtual assets from abroad for remittances and other personal transactions, but must adhere to BCC regulations.

Unauthorized activities involving virtual assets are prohibited and subject to legal penalties.

Entities providing virtual asset services (e.g., exchanges, custodial services) must obtain a license from the BCC.

Published In: Gaceta Oficial No. 92 Ordinaria de 2021

Individuals: Cuban citizens are generally permitted to use and hold virtual assets, primarily for personal use, remittances, and transactions with other individuals. While peer-to-peer (P2P) trading among individuals is widespread and often happens outside formal regulated channels, the official stance emphasizes adherence to BCC regulations.

Legal Entities: Legal entities (businesses, state enterprises) are more restricted. They can only use virtual assets issued by central banks (CBDCs) and explicitly authorized by the BCC for commercial transactions. This is a very narrow scope.

The establishment and operation of virtual asset exchanges and other service providers (e.g., custodians, wallet providers) in Cuba are not banned but are strictly regulated and require explicit authorization and licensing from the Banco Central de Cuba.

Operating financial services without authorization from the Central Bank of Cuba (BCC) is illegal, and new laws now grant the Ministry of the Interior and the BCC joint authority to freeze bank accounts without notice as part of enforcement.

As of now, the number of officially licensed virtual asset service providers in Cuba is extremely limited, and the regulatory environment aims to keep tight control over the formal ecosystem. Many Cubans continue to rely on informal channels, international platforms accessible via VPNs, and P2P networks for their crypto activities.

Virtual asset regulation in Cuba is assessed by the Financial Action Task Force (FATF) and its FSRB, GAFILAT, with Recommendation 15 (new technologies, including virtual assets) currently rated Largely Compliant as of February 2024. Cuba's progress in strengthening measures against money laundering and terrorist financing

Cuba underwent its last mutual evaluation in December 2015, and its most recent follow-up report was published in February 2024, with the next possible onsite assessment scheduled for May 2026. Cuba

Cuba's assessment body is GAFILAT (Financial Action Task Force of Latin America), and the country is subject to ongoing FATF mutual evaluation procedures including follow-up reporting obligations. Cuba

The country concluded its Fourth-Round follow-up process with the 2024 report, and the practical reality is that Cuba remains in an active supervisory dialogue with FATF and GAFILAT regarding its AML/CFT framework, including measures applicable to virtual assets. Cuba's progress in strengthening measures against money laundering and terrorist financing

No specific Cuba-based virtual asset service provider licensing regime is detailed in the FATF/GAFILAT documentation, meaning businesses operate in a context of general AML/CFT supervision rather than a dedicated crypto-asset authorization framework. Cuba

Cuba is assessed by the Financial Action Task Force of Latin America (GAFILAT), which serves as the country's FATF-style regional body for AML/CFT evaluations. Cuba

The FATF published Cuba's most recent mutual evaluation follow-up report on 14 February 2024, which constitutes the primary publicly available official assessment of Cuba's AML/CFT compliance framework under the FATF standards. Cuba's progress in strengthening measures against money laundering and terrorist financing

Cuba's last full mutual evaluation was conducted in December 2015, and the 2024 follow-up report analyzes progress made since that evaluation and subsequent follow-up reports, including the January 2022 and January 2021 follow-up reports. Cuba

The FATF Recommendation 15, which covers new technologies including virtual assets, has been re-rated from Partially Compliant to Largely Compliant in the 2024 follow-up report, indicating a recognized improvement in Cuba's regulatory approach to virtual assets. Cuba's progress in strengthening measures against money laundering and terrorist financing

Based on the approved follow-up procedures for the Fourth Round and the Road Map in preparation for the Fifth Round of Mutual Evaluations, Cuba concludes its Fourth-Round follow-up with the 2024 report, with a possible onsite assessment period scheduled for May 2026 and possible plenary discussion in December 2026. Cuba

Cuba's next mutual evaluation cycle is being prepared under the FATF Fifth Round framework, with the onsite assessment tentatively planned for May 2026, indicating the timeline for the next comprehensive review of Cuba's AML/CFT system. Cuba

The follow-up report covers technical compliance deficiencies identified in Cuba's mutual evaluation report (MER) and documents the progress made in addressing those deficiencies through legislative and regulatory measures. Cuba's progress in strengthening measures against money laundering and terrorist financing

The FATF country page for Cuba indicates that the assessment body is GAFILAT, and the last evaluation was conducted in December 2015, with the follow-up process extending through the February 2024 report. Cuba

Cuba's progress reports are published under the FATF Mutual Evaluations topic and are available in both English and Spanish, with the 2024 report being the most recent published assessment. Cuba's progress in strengthening measures against money laundering and terrorist financing

The FATF/GAFILAT follow-up reports for Cuba do not describe a specific licensing regime for virtual asset service providers, and no separate license categories for crypto businesses are identified in the publicly available assessment documents. Cuba's progress in strengthening measures against money laundering and terrorist financing

No entity has been publicly identified as having received a virtual asset service provider license in Cuba through the FATF/GAFILAT documentation, and the published materials do not indicate that any such licenses have been issued to date. Cuba

The FATF country page for Cuba does not list any specific licensing authorities or registration bodies for virtual asset service providers operating in the country. Cuba

No capital requirements, application fees, or processing timelines for virtual asset licenses in Cuba are specified in the available FATF/GAFILAT publications, and such figures are not part of the published assessment materials. Cuba's progress in strengthening measures against money laundering and terrorist financing

The regulatory framework described in the follow-up reports does not enumerate structural requirements for virtual asset service providers, such as board composition, local presence mandates, or compliance officer appointments, within the publicly available documents. Cuba's progress in strengthening measures against money laundering and terrorist financing

Cuba's next assessment cycle, scheduled for May 2026, may provide additional clarity on licensing and registration requirements for virtual asset service providers, but no such detail is available in the current documentation as of the February 2024 report. Cuba

The FATF follow-up report for Cuba, published in February 2024, addresses the technical compliance deficiencies identified in the mutual evaluation report and documents Cuba's progress in implementing FATF standards, including customer due diligence (CDD) requirements applicable to financial institutions and other regulated entities. Cuba's progress in strengthening measures against money laundering and terrorist financing

The re-rating of Recommendation 15 from Partially Compliant to Largely Compliant indicates that Cuba has enhanced its framework for supervising new technologies and virtual assets, which under FATF standards requires the application of AML/CFT measures including CDD obligations to virtual asset service providers. Cuba's progress in strengthening measures against money laundering and terrorist financing

Cuba's assessment under the Fourth Round of mutual evaluations covers the full range of FATF Recommendations, which include requirements for enhanced due diligence (EDD) in higher-risk situations, though the specific EDD provisions implemented by Cuba are not itemized in the published report summary. Cuba's progress in strengthening measures against money laundering and terrorist financing

The FATF framework, which Cuba is subject to through its GAFILAT membership, requires reporting entities to submit suspicious transaction reports (STRs) to the financial intelligence unit, though the published summary does not specify Cuba's exact STR threshold amounts or reporting deadlines. Cuba

Record retention requirements under the FATF standards, to which Cuba is assessed, mandate that transaction records be kept for at least five years, though the specific retention period adopted in Cuban law is not stated in the available documentation. Cuba's progress in strengthening measures against money laundering and terrorist financing

Beneficial ownership transparency is covered under the FATF Recommendations that Cuba is required to implement, and the mutual evaluation reports analyze Cuba's compliance with these obligations, including ultimate beneficial owner identification, though specific Cuban legal provisions are not quoted in the published summary. Cuba's progress in strengthening measures against money laundering and terrorist financing

Politically exposed persons (PEP) screening requirements are part of the FATF standards addressed in Cuba's mutual evaluation process, and the compliance ratings in the follow-up report cover Cuba's implementation of these obligations, though the summary does not list specific PEP provisions. Cuba

The FATF assessment ratings for Cuba cover all Recommendations, and the follow-up documents analyze technical compliance, which includes the adequacy of Cuba's legal and regulatory framework for CDD, EDD, STR, record keeping, beneficial ownership, and PEP screening across all relevant sectors. Cuba's progress in strengthening measures against money laundering and terrorist financing

The FATF country page for Cuba does not list any specific enforcement actions taken against virtual asset service providers, and no cases are identified in the published assessment materials. Cuba

The February 2024 follow-up report focuses on technical compliance rather than enforcement outcomes, and no specific penalty amounts, fines, or sanctions against named entities are documented in the publicly available summary. Cuba's progress in strengthening measures against money laundering and terrorist financing

No enforcement case involving crypto or virtual assets is referenced in the FATF platform documentation for Cuba, which addresses systemic compliance rather than individual prosecutions or administrative sanctions. Cuba

The FATF publications related to Cuba, including the 2024 follow-up report, do not contain details of any arrests, fines, or enforcement actions against licensed or unlicensed virtual asset businesses operating in Cuba. Cuba's progress in strengthening measures against money laundering and terrorist financing

No tax guidance has been issued for virtual assets in the FATF/GAFILAT documentation for Cuba, and the published assessment materials do not address tax treatment of cryptocurrency gains, capital gains, income tax, or VAT on crypto transactions. Cuba

The mutual evaluation reports for Cuba focus exclusively on AML/CFT compliance obligations under the FATF standards and do not address the taxation of virtual assets or digital assets. Cuba's progress in strengthening measures against money laundering and terrorist financing

The absence of any tax-related provisions in the FATF assessment materials means that the tax treatment of cryptocurrency transactions in Cuba must be sought from other sources, and no such guidance is available in the provided FATF documentation. Cuba's progress in strengthening measures against money laundering and terrorist financing

The available FATF documentation for Cuba, including the February 2024 follow-up report, does not provide a complete picture of Cuba's virtual asset regulatory framework, lacking specific details on licensing procedures, capital thresholds, and registration obligations for virtual asset service providers. Cuba's progress in strengthening measures against money laundering and terrorist financing

The FATF country page indicates that Cuba's next onsite assessment is scheduled for May 2026, meaning the full scope of Cuba's virtual asset AML/CFT framework will only be comprehensively evaluated at that time, creating uncertainty in the interim period. Cuba

Cuba's conclusion of its Fourth-Round follow-up with the 2024 report, combined with the upcoming Fifth Round mutual evaluation, creates a transitional risk where regulatory expectations may shift as Cuba aligns with updated FATF standards and methodologies. Cuba's progress in strengthening measures against money laundering and terrorist financing

The re-rating of Recommendation 15 to Largely Compliant, while positive, still leaves Cuba short of full compliance with FATF standards on virtual assets, indicating residual gaps in the regulatory framework. Cuba's progress in strengthening measures against money laundering and terrorist financing

A significant risk for businesses is the lack of publicly available specifics from the FATF/GAFILAT sources regarding Cuba's operational AML/CFT requirements for virtual asset service providers, including CDD procedures, STR filing deadlines, and enforcement mechanisms, which are not itemized in the published summaries. Cuba

The practical reality in Cuba is that while the AML/CFT framework has been upgraded in the FATF assessment, the absence of detailed operational guidance in the published documentation creates implementation uncertainty for businesses seeking to engage with virtual assets in the Cuban market. Cuba's progress in strengthening measures against money laundering and terrorist financing

The possible onsite period in May 2026 and plenary discussion in December 2026 represent critical milestones where Cuba's regulatory framework will face renewed scrutiny, and businesses should anticipate potential regulatory changes following this review cycle. Cuba

Cuba's progress in strengthening measures against money laundering and terrorist financing

Cuba's progress in strengthening measures against money laundering and terrorist financing - PDF Report

Resolution 215/2021 of the Banco Central de Cuba (BCC), published in Official Gazette No. 73 Ordinary of 2021.

Resolution 216/2021 of the Banco Central de Cuba (BCC), also published in Official Gazette No. 73 Ordinary of 2021.

Resolution 215/2021 regulates the use of virtual assets in Cuba. It defines virtual assets and states that their use for transactions between natural and legal persons is authorized by the BCC, provided they are issued by central banks or monetary authorities, or otherwise explicitly approved by the BCC. It also explicitly prohibits the use of virtual assets issued by private entities without prior authorization from the BCC. Entities operating with virtual assets must obtain a license from the BCC.

Resolution 216/2021 initially authorized financial institutions to use virtual assets under BCC supervision with prior authorization, but subsequent implementation has moved to a concrete licensed framework where only 10 state-owned and mixed-enterprise firms have been granted licenses, excluding regular banks and non-bank financial institutions, and accompanied by new restrictive conditions including unilateral account freezing powers.

Cuba does not have a distinct "crypto custodial license" in the sense of a specialized license solely for custody services.

However, Resolution 215/2021 mandates that any legal person (entity) operating with virtual assets (which would include providing custody-like services) must obtain prior authorization from the Banco Central de Cuba.

Resolution 216/2021 further specifies that existing financial institutions (banks, non-bank financial institutions) must also obtain specific authorization from the BCC to operate with virtual assets. This implies that if a Cuban bank were to offer crypto custody, it would need this authorization.

The authorization process involves proving economic-financial solvency, demonstrating expertise and technological infrastructure, and adhering to BCC guidelines.

There are no explicit crypto-specific rules mandating the segregation of client virtual assets from the operating assets of the custodian or the personal assets of the entity in the Cuban regulations (Resolution 215/216).

However, for financial institutions authorized under Resolution 216/2021, general Cuban banking regulations concerning client funds and assets would likely apply, which typically include principles of separation, though not necessarily tailored for the unique nature of virtual assets.

There are no explicit crypto-specific insurance or bonding requirements for virtual asset custodians mentioned in the Cuban regulations.

Again, general banking regulations might imply some level of capital adequacy or guarantees for financial institutions, but not specific to virtual assets or in the form of a "bond" as seen in some Western jurisdictions.

There are no explicit mandates or requirements for cold storage (offline storage of private keys) in the Cuban regulations.

The resolutions focus on the legality and authorization of virtual asset use rather than specific technical security protocols for storage.

The term "qualified custodian" as understood in jurisdictions like the US (e.g., under the SEC's Custody Rule) is not explicitly defined in Cuban virtual asset regulations.

The closest equivalent would be financial institutions authorized by the Banco Central de Cuba under Resolution 216/2021 to operate with virtual assets, as these are the entities with the existing regulatory infrastructure and oversight for handling client funds. Legal persons other than financial institutions authorized under Resolution 215/2021 would also be regulated, but the "qualified custodian" concept specifically is absent.

There is no publicly announced or widely reported pending legislation specifically focused on crypto custody in Cuba. The regulatory focus appears to remain on controlling the flow and use of virtual assets within the national economy and preventing illicit activities, rather than developing a detailed operational framework for crypto service providers beyond basic authorization.

References to Resolutions 215 and 216 of 2021:

These resolutions were published in Gaceta Oficial No. 73 Ordinaria de 2021 (Official Gazette No. 73 Ordinary of 2021), dated August 26, 2021.

31 CFR § 515.201: Prohibits transactions by "U.S. persons" (and persons subject to U.S. jurisdiction) relating to property in which Cuba or a Cuban national has an interest, unless licensed or exempt.

31 CFR § 515.204: Prohibits financial and other transactions with Cuba, Cuban nationals, or any property in which Cuba or a Cuban national has an interest.

The Cuban Assets Control Regulations (CACR) at 31 CFR part 515 have been supplemented by new secondary sanctions imposed under Executive Order 14404, expanding the sanctions framework beyond the original CACR text.

The OFAC Cuba Sanctions Program page exists but is outdated as of 2026; new sanctions under Executive Order 14404 (May 1, 2026) and additional measures targeting Cuban officials and foreign enablers have expanded beyond the original program framework.

The prohibitions apply broadly to U.S. persons, and have been expanded to include sanctions against non-U.S. persons under new executive orders.

Any U.S. citizen or permanent resident, wherever located.

Any person physically in the U.S.

Any entity organized under U.S. laws (including foreign branches).

Foreign entities owned or controlled by U.S. persons (in some contexts, though this is primarily for Iran sanctions, caution is advised for Cuba).

Blocking and Rejecting Transactions: VASPs subject to U.S. jurisdiction must:

Block (freeze) any virtual assets or other property in which Cuba or a Cuban national has an interest, and report it to OFAC within 10 business days. This applies to incoming and outgoing transactions.

Reject (return funds to the originator) any prohibited transactions that do not involve blocked property, and report it within 10 business days.

No General Licenses for Crypto: While OFAC issues general licenses for certain categories of transactions with Cuba (e.g., family remittances, certain travel, humanitarian aid), these are typically tied to traditional financial institutions or specific licensed activities. There is no blanket general license covering virtual asset transactions with Cuba. Any crypto-related activity would likely require a specific license from OFAC, which is very difficult to obtain.

Comprehensive Prohibition: The embargo prohibits virtually all direct or indirect financial dealings with Cuba, Cuban nationals, and any entity owned or controlled by them. This extends to facilitating transactions, providing services, or transferring any value, including virtual assets.

Specially Designated Nationals (SDN) List: VASPs must screen all their customers and transactions against OFAC's SDN List. While the Cuba embargo is territorial, certain Cuban government officials, entities, and organizations are specifically listed as SDNs, particularly under the "Kingpin Act" (for narcotics trafficking) or the "Global Magnitsky" sanctions programs.

The U.S. Treasury's OFAC sanctions list remains active and applicable to Cuba, but the sanctions landscape has been updated with new designations (e.g., against President Miguel Díaz-Canel) and additional restrictions announced in May 2026, making a static link without date context insufficient to reflect the current sanctions regime.

The Sectoral Sanctions Identifications (SSI) List is now highly relevant for Cuba due to recent U.S. sanctions targeting Cuban government agencies, the military-run business enterprise, and critical sectors such as energy and mining.

Cuba Restricted List (CRL): This is a specific list maintained by the Department of State of entities and subentities under the control of, or acting for or on behalf of, the Cuban military, intelligence, or security services or personnel. Direct financial transactions with these entities are prohibited. While not technically an OFAC list for blocking purposes, it dictates prohibited activities.

The Cuba Restricted List is being actively expanded and updated with new sanctions under the Trump administration and Secretary Rubio, causing hotel chains to exit and targeting Cuban officials, making the static list referenced by the claim outdated.

The entire territory of Cuba (including its airspace and territorial waters), and individuals or entities ordinarily resident therein, are subject to the comprehensive embargo. This means any virtual asset transaction originating from, destined for, or involving a person or entity in Cuba is highly restricted.

Civil Penalties: OFAC can impose substantial civil monetary penalties for violations, ranging from tens of thousands to hundreds of thousands or even millions of dollars per violation, depending on the severity, number of transactions, and whether they were egregious or non-egregious.

Criminal Penalties: Willful violations can lead to criminal prosecution, with severe fines and imprisonment for individuals.

International Emergency Economic Powers Act (IEEPA): Up to $1 million per violation, 20 years in prison.

Trading with the Enemy Act (TWEA): Up to $250,000 per violation, 10 years in prison.

There are no specific crypto-asset addresses or wallet IDs sanctioned *solely for Cuba* by OFAC. Sanctions apply to persons and entities, and their assets, regardless of the asset type (fiat or virtual).

However, if OFAC identifies virtual asset addresses owned or controlled by sanctioned Cuban entities or individuals (e.g., from the SDN List or Cuba Restricted List), those addresses would become subject to blocking requirements, and their inclusion in compliance screening tools would be crucial. VASPs should monitor OFAC's updates closely.

Council Decision (CFSP) 2017/2074 concerning restrictive measures in view of the situation in Cuba: This decision sets out the policy.

Council Regulation (EU) 2017/2063 concerning restrictive measures in view of the situation in Cuba: This regulation implements the decision, making the measures legally binding within the EU.

These measures include an arms embargo, prohibitions on certain equipment that could be used for internal repression, and a legal basis to impose asset freezes and travel bans on individuals responsible for human rights violations.

Council Regulation (EU) 2017/2063: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32017R2063

Council Decision (CFSP) 2017/2074 concerning restrictive measures in view of the situation in Cuba has been amended by Decision (CFSP) 2025/2586 as of 17 December 2025, and the consolidated text now reflects the current legal framework for Cuba sanctions.

European External Action Service (EEAS) Cuba Page: https://www.eeas.europa.eu/node/53239_en

Asset Freezing and Prohibition to Make Funds Available: EU persons (individuals and entities established in the EU, or operating under the jurisdiction of EU Member States) are prohibited from making funds or economic resources directly or indirectly available to, or for the benefit of, designated persons. This includes virtual assets.

Targeted Measures: The EU sanctions are not a comprehensive embargo. They specifically target individuals and entities involved in human rights violations.

No Geographic Embargo: Unlike the U.S., the EU does not impose a general geographic restriction on transactions with Cuba. Transactions with non-sanctioned Cuban persons or entities are generally permissible under EU law, subject to normal AML/CFT rules.

EU Consolidated Financial Sanctions List: VASPs operating under EU jurisdiction must screen their customers and transactions against the EU Consolidated Financial Sanctions List. This list includes individuals and entities designated under the Cuba human rights sanctions regime, as well as other EU and UN sanctions programs (e.g., terrorism, WMD proliferation).

EU Sanctions Map (Consolidated List): https://sanctionsmap.eu/ (Includes persons designated under Cuba sanctions)

No broad geographic restrictions on Cuba as a whole under EU law, only specific prohibitions related to sanctioned persons/entities and military/repression-related goods.

Penalties for violating EU sanctions are determined by national law in each EU Member State. These vary but typically include significant fines and potential imprisonment for serious offenses.

Similar to OFAC, the EU does not maintain crypto-specific sanction lists for Cuba. Sanctions apply to designated persons, and their assets, including virtual assets.

While there are no specific UN sanctions against Cuba, UN Security Council Resolutions establish global sanctions regimes (e.g., against terrorism, WMD proliferation, specific countries like DPRK, Iran, etc.).

These UN sanctions are binding on all UN Member States, who must implement them through their national laws.

Universal Application: All VASPs globally, regardless of their jurisdiction, should screen against relevant UN sanctions lists as part of their broader AML/CFT obligations.

Asset Freezing: If a VASP identifies a virtual asset transaction involving an individual or entity on a UN sanctions list (e.g., those designated for terrorism, WMD proliferation), they must freeze those assets and report them to their national authorities.

No Provision of Funds/Economic Resources: VASPs are prohibited from making funds or economic resources available to UN-sanctioned persons.

UN Security Council Consolidated List: This list includes individuals and entities designated under various UN sanctions regimes (e.g., Al-Qaida, ISIS, Taliban, DPRK, Iran). VASPs must screen against this list.

Cuba is not subject to any active UN Security Council sanctions regime; the UN Security Council Sanctions Committees Consolidated List does not include Cuba-related entries. The sanctions referenced are unilateral U.S. measures, not UN multilateral sanctions.

No UN-mandated geographic restrictions on Cuba itself. Restrictions apply to transactions with designated persons/entities, regardless of their location.

Penalties for violating sanctions on Cuba are implemented and enforced by U.S. federal and state authorities, including through Executive Orders and state laws like Florida's new legislation, going beyond the simple model of UN Member State national-law enforcement.

The UN does not publish crypto-specific sanctions lists. Its lists apply to individuals and entities, and the obligation extends to any assets they own or control, including virtual assets.

Robust KYC/CDD: Enhanced Due Diligence (EDD) for any nexus to Cuba. Verify identity, source of funds/wealth, and intended use of virtual assets.

Sanctions Screening: Implement automated, real-time sanctions screening of all customers and transactions against OFAC's SDN List, Cuba Restricted List, EU Consolidated List, and UN Consolidated List.

Geographic IP Blocking: Implement IP blocking for Cuba to prevent access from the embargoed territory, if feasible and aligned with the VASP's risk appetite.

Transaction Monitoring: Advanced transaction monitoring systems to detect patterns indicative of sanctions evasion (e.g., small, frequent transactions, use of mixers, unusual transaction parties or locations).

OFAC Geo-Location Guidance: OFAC has provided guidance on virtual currency, emphasizing the importance of IP addresses, device identifiers, and other metadata for determining geographic origin and destination, which is critical for Cuba.

OFAC Sanctions Compliance Guidance for the Virtual Currency Industry (Oct 2020): https://home.treasury.gov/system/files/126/virtual_currency_guidance_20201020.pdf

Reporting Obligations: Report blocked or rejected transactions to OFAC (for U.S. persons) or relevant national authorities (for EU/UN sanctions) promptly.

Risk-Based Approach: Adopt a comprehensive risk-based approach to assessing and mitigating sanctions risk related to Cuba, factoring in the nature of the VASP's business, customer base, and geographic footprint.

Lack of Transparency: The Cuban government is not known for its transparency regarding internal enforcement actions, especially against individuals or smaller, private entities.

Focus on Regulation: Cuba's primary public actions concerning crypto have been the creation of a legal framework to regulate virtual assets, aiming to harness them for economic benefit (e.g., bypassing US sanctions, facilitating remittances) while simultaneously controlling their use to prevent illicit activities and maintain state oversight.

Nature of the Economy: In a state-controlled economy, significant independent financial operations (like an unregistered crypto exchange) would likely be shut down or absorbed without a public trial or detailed announcement.

Central Bank of Cuba (BCC) holds expanded enforcement powers, including unilateral authority to freeze bank accounts without notice and suspend Visa and Mastercard transactions.

Entity Targeted: Not a specific entity. This legislation targets all individuals and legal entities operating with virtual assets in Cuba. It mandates that virtual asset service providers (VASPs) must obtain a license from the BCC. Violation Type: Not applicable as a specific enforcement action. However, the law defines that operating a virtual asset service without a license, or engaging in activities deemed illicit by the BCC, would constitute a violation. Penalty Amount: Not applicable for the decree itself. The decree establishes the legal basis for future penalties for non-compliance, which could range from fines to imprisonment, depending on the severity of the violation as outlined in Cuba's criminal code.

Decree-Law 215/2021: Published in the Official Gazette on August 16, 2021, coming into effect 90 days later.

Resolution 215/2021 (BCC): Published on September 2, 2021, detailing the licensing requirements and regulatory framework.

Outcome: Legalization and regulation of virtual assets and virtual asset service providers (VASPs) under the oversight of the Central Bank of Cuba. The framework aims to promote economic development, facilitate remittances, and circumvent financial sanctions, while simultaneously seeking to prevent illicit activities, money laundering, and terrorist financing.