The central bank of El Salvador, Banco Central de Reserva (BCR), has officially published its draft regulations on how banks should deal with Bitcoin.
- The two documents were published for consultation on Aug. 17, directing banks and financial institutions on how to provide Bitcoin-related services to their customers.
- The first document, “Guidelines for the Authorization of Operation of the Digital Wallet Platform for Bitcoin and Dollars,” defines BTC as a legal tender.
- The second document, “Technical Standards to Facilitate the Application of the Bitcoin Law,” is a more comprehensive and detailed version of the first document.
- Financial institutions must apply to the central bank to provide digital wallets. Applications must indicate the nature of the product being offered, target market details, risk assessments, and complaint procedures.
Know-your-customer (KYC) verification will be needed for all customers though it was uncertain whether the national ID card would suffice for a crypto wallet. The two documents do not detail any provisions for accounting standards or standard government exchange rates for the conversion of Bitcoin into fiat.
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