Financial Crime World

Cryptocurrencies Leave Financial Regulators in Cape Verde in Limbo

Cape Verde’s financial regulatory authorities are facing uncertainty due to the lack of specific laws governing cryptocurrencies. Despite their growing popularity worldwide, the Central Bank of Cabo Verde has remained silent on the issue, failing to provide any official guidance or regulation.

The absence of explicit laws either legalizing or criminalizing cryptocurrency use in Cape Verde has created a void that leaves individuals and businesses operating in this sphere without clear legal or regulatory guidance. While it is not illegal to engage in cryptocurrency-related activities, they are also not officially recognized or regulated.

This lack of clarity has led to potential legal risks for those involved. The absence of dedicated laws means that general laws related to criminal activities such as money laundering and fraud could be applied to illicit activities involving cryptocurrencies. This means that individuals and businesses engaging in illegal activities with cryptocurrencies could potentially face prosecution under these broader laws.

The Study

A 2018 study by Ecobank found that neither the Government nor the Central Bank of Cape Verde had articulated a public stance on the use of cryptocurrency, further entrenching the ambiguity surrounding its regulation in the nation. As a result, it remains unclear what legal framework applies to cryptocurrencies in Cape Verde and how they will be regulated in the future.

The Need for Clarity

The lack of clarity has led to a situation where individuals and businesses are forced to operate in a legal grey area, with potential legal risks looming large. It is imperative that the authorities clarify the regulatory environment for cryptocurrencies in Cape Verde to provide a sense of security and stability for those involved.

Conclusion

In conclusion, the lack of specific laws governing cryptocurrencies in Cape Verde has left financial regulators in limbo. The authorities must take immediate action to clarify the regulatory framework for cryptocurrencies, providing a clear and stable environment for individuals and businesses operating in this sphere.