Cuba -- Custody Regulations Regulatory Overview

Cuba has regulated the use of virtual assets, but its regulatory framework is primarily focused on authorization and control rather than the granular operational details of cryptocurrency custody that are common in more developed financial markets (e.g., specific cold storage mandates, detailed segregation rules).

The primary regulations governing virtual assets in Cuba are:

1. Resolution 215/2021 of the Banco Central de Cuba (BCC), published in Official Gazette No. 73 Ordinary of 2021.
2. Resolution 216/2021 of the Banco Central de Cuba (BCC), also published in Official Gazette No. 73 Ordinary of 2021.

Here's a breakdown of the specific custody-related aspects based on the available information:

Overview of Cuban Crypto Regulations

• 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 specifically authorizes financial institutions (banks and non-bank financial institutions) to use virtual assets under the supervision of the BCC, provided they receive prior authorization and meet specific conditions.

Specific Custody Regulations in Cuba:

1. Custodial License Requirements:

• 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.

2. Segregation of Client Assets Rules:

• 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.

3. Insurance/Bonding Requirements:

• 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.

4. Cold Storage Mandates:

• 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.

5. Qualified Custodian Definitions:

• 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.

6. Any Pending Custody Legislation:

• 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.

Regulatory References:

It is often challenging to find direct, stable, and publicly accessible URLs to the exact text of Cuban Official Gazettes from outside Cuba. However, the resolutions are widely referenced and discussed.

• Banco Central de Cuba (BCC) Official Website:

  • While specific direct links to the full text of the resolutions might change, the BCC's website is the authoritative source for Cuban financial regulations. You can search for "Resolución 215/2021" and "Resolución 216/2021".
  • General BCC Website: https://www.bc.gob.cu/

• 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.
  • You can often find summaries or official notifications on Cuban news sites or legal portals referencing these Gaceta numbers. For example, some articles detailing the regulations often cite the Gaceta Oficial.

In summary: Cuba's cryptocurrency regulations establish a framework for the legal use and authorization of virtual assets by both individuals, legal entities, and financial institutions. However, they do not provide specific, granular details regarding crypto custody operational requirements such as asset segregation, insurance, cold storage mandates, or a definition of "qualified custodian" akin to those found in many other jurisdictions. The emphasis is on the BCC's authorization and supervision of entities involved in virtual asset transactions.