Crypto Companies Are Financial Institutions According To Central Bank Of Samoa

The Central Bank of Samoa, an island in the South Pacific, has recently determined that individuals who promote cryptos will be treated with the same legislation that the island nation has for financial institutions.

A recent statement issued by the bank has affirmed that crypto promoters will have to abide by country’s existing legislation on money laundering. This way, they will have to get the necessary licenses for the job and will have to report to other financial institutions.

According to the new law, any person who wishes to promote cryptos or digital currencies in general will have to do it under the Money Laundering prevention Amendment Act 2018. This includes having a valid business license in Samoa and following the rules for reporting requirements.

Cryptos Do Not Have A Legal Tender

The stance of the Central Bank of Samoa is definitely not positive on cryptos. While the promoters for such assets will have to register, the cryptos themselves will have any legal tender status in the island, therefore, they are not legally accepted as currencies. The bank went as far as advising investors on the risks of investing in this kind of asset.

According to the Central Bank of Samoa, people should invest “at their own risk” and there is no guarantee that cryptos will ever be accepted or even have recognized value. At least they did not ban cryptos like some countries are doing.

Despite the anti-crypto position of the company, the Central Bank has acknowledged that the blockchain technology has many uses and could transform the financial sector. Because of this, the bank decided to spearhead exploration of the technology for promoting the financial inclusion of the island.

Onecoin Transactions Blocked

Four months ago, the Central Bank decided that all foreign exchange transactions involved Onecoin should be stopped. This was made because the bank was suspicious that Onecoin was, in fact, a pyramid scheme instead of a proper cryptocurrency enterprise. The reason for the bank to do it was to “protect the country’s forex reserves”.

The bank has affirmed in a statement that this was to ensure the protection of the foreign currency reserves of the country, which could be at risk because a lot of people were wanting to send money overseas for this possible scam.

Samoa is not alone against cryptos. The Bank of Laos has recently decided to warn its citizens against the dangers of cryptos, too, and affirmed that they could be classified as proper currencies.

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