Quick Answer
Yes, cryptocurrency is legal and regulated in Cuba.
- The central bank regulates crypto and licenses service providers.
- Providers must follow strict anti-money laundering (AML) and KYC rules.
Legal Status of Crypto in Cuba
Once existing in a legal gray area, cryptocurrency is now officially legal and regulated in Cuba. The government moved to formalize its status for reasons of socioeconomic interest, acknowledging crypto as a valid means of payment. The Central Bank of Cuba acts as the primary regulatory authority, issuing licenses to virtual asset service providers. These providers are required to follow a compliance framework that includes anti-money laundering rules and customer due diligence procedures.
Current Regulations
Cuba's government established a formal regulatory framework for cryptocurrency with the publication of Resolution 215 in August 2021, which authorizes the Central Bank of Cuba to regulate digital assets. The central bank now issues licenses to virtual asset service providers, evaluating applications based on legality and socioeconomic interest before granting an initial one-year license. Furthermore, the framework requires all licensed providers to comply with anti-money laundering rules and report any suspicious financial activities.
Regulatory Authorities
The primary authority overseeing cryptocurrency regulation in Cuba is its central bank.
- Central Bank of Cuba: This institution is responsible for regulating digital currencies and issuing licenses to virtual asset service providers under Resolution 215. It also enforces compliance with anti-money laundering (AML) and customer due diligence requirements for all licensed entities.
Historical Context
Initially, cryptocurrency in Cuba was completely unregulated, existing in a legal gray area as use surged around 2020 to bypass U.S. sanctions. The major policy shift came in August 2021, when the government passed Resolution 215, officially recognizing crypto as a legal payment method. This authorized the central bank to oversee the sector, and by April 2022, it began requiring licenses for service providers. This regulatory evolution has helped Cubans circumvent the U.S. embargo, enabling remittances and access to global financial services previously out of reach.
Compliance Requirements for Businesses in Cuba
Businesses operating with digital assets in Cuba must navigate a detailed compliance framework guided by government regulations. The core requirements are designed to prevent financial crimes and ensure transparency.
- Anti-Money Laundering (AML) Checks: Under Decree-Law No. 317, all institutions must implement robust systems for customer identification and transaction monitoring. This involves screening customers, performing risk assessments, and checking names against global and local watchlists to detect and prevent illicit activities.
- Know Your Customer (KYC) Requirements: Companies must verify a customer's identity using official documents like a valid passport, driver's license, or Cuban Identity Card. Address can be verified with a utility bill or bank statement. Verification often includes advanced methods like biometric checks and specialized document analysis to confirm authenticity.
- Other Mandatory Procedures: Key obligations include detailed record-keeping, with all due diligence data retained for at least five years. Businesses must also report suspicious activities to the Central Bank of Cuba and apply Enhanced Due Diligence (EDD) for high-risk individuals, such as Politically Exposed Persons (PEPs).
Why this matters for Cross-Border Payments
Cuba's crypto regulations are a double-edged sword for international transactions with partners in countries like India. While they formalize a payment channel outside of traditional banking, they also introduce significant compliance burdens for Indian businesses. Navigating Cuba's stringent KYC/AML checks, which require robust customer verification and reporting, can create operational bottlenecks and increase costs. This friction can become a major pain point, potentially offsetting the benefits of using crypto for faster, more direct payments.
How Lightspark Enables Compliant Crypto-Native Payments
Lightspark offers a global payments network called the "Money Grid," built on Bitcoin's foundation to make money move like internet data. It provides two main products: Lightspark Connect, for companies using native Bitcoin for real-time payments, and Grid Switch, which lets institutions use domestic real-time payment systems for cross-border fiat transfers. These tools leverage AI-powered routing and developer-friendly APIs to simplify integration and optimize for speed and cost, addressing the operational friction of international transactions.
By enabling instant, low-cost transfers, Lightspark directly eases the bottlenecks and high costs of traditional cross-border payments. For regulated institutions navigating complex rules like Cuba's, Lightspark provides a crucial bridge. It facilitates compliance through features like audit-ready reporting, flexible custody options, and infrastructure with built-in support for requirements like the Travel Rule and OFAC screening. This empowers businesses to meet their own stringent AML/KYC obligations more efficiently.
To learn more about Lightspark's solutions for compliant cross-border payments, visit their website.
Notice: This article is provided for informational purposes only and does not constitute legal advice.
Sources
- “Cuba and Cryptocurrency.” Freeman Law, n.d., freemanlaw.com/cryptocurrency/cuba/.
- Frank, Marc. “Cuba approves cryptocurrency services, requires central bank license.” Reuters, 28 Apr. 2022, www.reuters.com/world/americas/cuba-approves-cryptocurrency-services-requires-central-bank-license-2022-04-27/.
- “Identity Verification, KYC and AML Compliance in Cuba.” Didit, 28 Nov. 2024, didit.me/blog/identity-verification-kyc-and-aml-compliance-in-cuba.
- Luiv, Sven. “Cuba Turns to Bitcoin and Crypto to Survive 60+ Years of U.S. Sanctions.” Brave New Coin, 21 Jul. 2025, bravenewcoin.com/insights/cuba-turns-to-bitcoin-and-crypto-to-survive-60-years-of-us-sanctions.
- ShuftiPro. “Cuba - AML KYC Regulations.” ShuftiPro, 16 Jan. 2020, shuftipro.com/compliances-reports/cuba.pdf.
- Vilkenson, Tobias. “An overview of cryptocurrency regulations in Latin America.” Cointelegraph, 22 Jul. 2025, cointelegraph.com/learn/articles/cryptocurrency-regulations-in-latin-america.
