CAR unveils its crypto regulatory framework 1

TL; DR Breakdown

• CAR announces crypto regulatory framework
• The country wants a safe space for crypto
• Offenders will face up to 20 years in jail

Over the last few days, the Central African Republic has been in the news on the crypto scene going by a new update. According to a report now branded as false, the country was looking to install Bitcoin as an official legal tender. Doing this will put them on a roadmap to becoming a country like El Salvador, which announced the update some months ago. However, the latest news coming out of the country is the regulation of digital assets under its new crypto rule.

CAR wants a safe space for crypto

An update went around CAR some days ago after the country’s officials deliberated and announced the legalization of digital assets in the financial market. In a report submitted by RFI, the bill was forwarded for approval by the minister of digital communication in the CAR.

Although the statement was initially met with criticism and rejection by some members of the parliament, it took a unanimous decision for it to be approved. The new crypto law will ensure that digital assets are subjected to favorable growth. The minister also mentioned that digital assets would also solve issues related to sending and receiving funds across the border. The new law will allow interested individuals to make crypto payments.

Offenders will face up to 20 years in jail

The law also included a space where workers can leverage crypto to make their tax payments. However, the new law will not be complete without the regulations against bad actors. In the report, anybody that carries out a malicious act using digital assets could spend almost 20 years in jail. The individual will also be subjected to more than 100,000,000 CFA in fine. Reacting to the news, an analyst in CAR mentioned that the government is trying to enable people to hold other currencies asides from the CFA.

The analyst said that traders would be able to carry out easy and swift payments while paying little or nothing for the transactions. More than 14 countries use the CFA, backed by the euro. Although the currency is spent in most African countries, including CAR, it is printed and controlled by the west. With the currency currently dwindling, the majority of the traders in the country have turned their attention to digital assets like Bitcoin.