The Central Bank of Samoa warned that individuals promoting cryptocurrency in the island country would be subject to the same treatment as financial institutions.
According to a statement issued by the Samoa Reserve Bank, supporters of CryptoCurrency will have to comply with the country’s current money laundering legislation. As a result, proponents of such cryptocurrency will need to obtain the necessary licenses and comply with the reporting requirements, as do all other financial institutions.
“Anyone seeking to promote a cryptocurrency or digital currency is considered a financial institution under the 2018 Money Laundering Prevention Act,” the statement said. “This means that we have a valid business license issued in Samoa and that the Central Bank must comply with reporting requirements for financial institutions.”
Not a legal contract
At the same time, the Central Bank of Samoa (CBS) warned that cryptographic currencies did not have the status of legal tender to be accepted as currency in the island country. The rescue bank advised investors to know the risks before buying.
“People who invest in cryptographic currencies do so at their own risk,” said the Central Bank of Samoa. “There is no guarantee that cryptocurrency will be accepted as a medium of exchange or will retain its value.”
Despite the anti-cryptographic stance, GIS acknowledged that blockchain technology could be a transformative, especially in the financial sector. As a result, the Asia-Pacific Reserve Bank is studying blockchain technology as a platform to encourage financial participation in Samoa.
Onecoin Cryptocurrency Transactions Blocked
The central bank of Samoa is opposed to crypto palsy for the first time. Four months ago, the Polynesian country’s reserve bank issued a directive that interfered with all currency transactions related to Timescoin CryptoCurrency, which strongly disagreed. Then, GIS stated that the decision was based on the fact that Onecoin was a pyramid scheme. In addition, the central bank of Samoan said that this was in the interest of the country’s foreign exchange reserves.
“This ensures the protection of Samoa’s foreign exchange reserves, which makes it very risky for a large number of people who want to make money abroad very quickly.
GIS is not the only reserve bank in the recent past in the Asia-Pacific region against crypto-paralysis.Few days ago, the Bank of Laos recently warned the crypto-currencies that they were not allowed to be classified as currencies.