Samoa Central Bank: The cryptocurrency company will be treated as a financial institution

The Central Bank of Samoa warned that individuals who promote cryptocurrencies in the country will receive the same treatment as financial institutions.

According to a statement issued by the Reserve Bank of Samoa, the promoters of cryptocurrencies will have to comply with the current state money laundering legislation. Therefore, these cryptocurrency promoters will be required to obtain the necessary licenses and comply with the requirements of all other financial institutions.

The statement said: “According to the 2018 Amendment to the Money Laundering Prevention Act, anyone wishing to promote cryptocurrency or digital currency is considered a financial institution.

This means that individuals must have a valid business license issued in Samoa and must comply with the central bank’s reporting requirements for financial institutions.

“Not legal tender

At the same time, the Central Bank of Samoa (CBS) also warned that cryptocurrencies do not have the legal bidding status necessary for currency in the country. Therefore, the bank advises investors to understand the risks they bear before buying.

“People who invest in any cryptocurrency will take risks at their own risk,” the Central Bank of Samoa warned. “The bank cannot guarantee that the cryptocurrency will be accepted as a medium of exchange or retain its value.

“Although CBS has an anti-cryptocurrency position, it acknowledges that blockchain technology may be transformative, especially in the financial sector. Therefore, the Asia-Pacific Reserve Bank is exploring blockchain technology as a platform to promote Samoa’s financial inclusion.

Onecoin cryptocurrency trading blocked

This is not the first time the Central Bank of Samoa has opposed cryptocurrencies. Four months ago, the Polynesian National Reserve Bank issued an order prohibiting all foreign exchange transactions involving Oncecoin cryptocurrency. At the time, CBS said the decision was due to the suspicion that Onecoin was a pyramid plan. In addition, the Central Bank of Samoa also said that this is for the benefit of the country’s foreign exchange reserves.

CBS said in a statement: “This also ensures the protection of Samoa’s foreign exchange reserves, which poses a great risk because many people hope to achieve rapid wealth through overseas remittances.

“CBS is not the only reserve bank in the Asia Pacific region that has recently appeared against cryptocurrencies. CCN reported recently that the Lao Bank recently warned that cryptocurrencies are not eligible for categorization as currency.

[su_quote]This article is writing on 07 Sept 2018 based on information available online & news portal. If you feel it’s outdated or incorrect, please write here to update it. Mail us: [email protected] Or Whatsapp Us- +13098896258[/su_quote]

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