Ecuador

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Cryptoasset / Virtual Asset · Partial

BanksFinancial Institutions

Comprehensive framework Unregulated CASP / VASP regime Unregulated Licensing Unregulated AML / CFT Approved · 2022 Stablecoins Unregulated · Unregulated CBDC Proposed Consumer protection Unregulated Travel rule No Advertising rules No Taxation Unclear

Summary

Ecuador is USD-dollarized; the US dollar is the only legal tender (art. 94 of the Monetary and Financial Code) and cryptocurrencies are explicitly not legal tender nor an authorized means of payment (joint BCE/JPRM communiqué, 12 Aug 2024, grounded in arts. 94/98/99 COMF and JPRM resolutions). Individuals may buy, hold and P2P-trade crypto, but banks, insurers and payment processors are barred from processing crypto transactions, and the Superintendency of Banks enforces transaction-monitoring controls. There is no comprehensive crypto framework or licensing regime, but AML obligations apply: UAFE Resolution UAFE-DG-2022-0131 (2022) designates virtual asset service providers as reporting obligated subjects.

Timeline

2014: Ecuador launched an early state electronic-money experiment, later abandoned. 2022: UAFE Resolution UAFE-DG-2022-0131 designates VASPs as AML reporting entities (threshold USD 10,000). 12 Aug 2024: joint BCE/JPRM communiqué confirms crypto is not legal tender nor an authorized means of payment; the government floats expanding BCE sanction powers. No comprehensive crypto bill has been introduced.

AML / CFT

UAFE Resolución UAFE-DG-2022-0131 (8 Apr 2022, amended by UAFE-DG-2022-0577) designates virtual asset service providers (natural and legal persons) as obligated subjects required to report exchange/custody operations at or above USD 10,000 to the UAFE.