Crypto Regulation in Central African Republic
This piece of legislation has 24 articles, organized around 7 chapters, with the objective to “lay down the legal framework and the procedures for implementing and securing these transactions, the offences, penalties and means of proof in this regard” (article 1).
Some preliminary observations can be made:
Firstly, this law does not aim at replacing the monetary law but tries to organise a cohabitation between cryptocurrencies and Central African CFA Franc (FCFA), which is the official legal tender used in the Central African Economic and Monetary Community (CEMAC) area, according to article 6 of the Convention governing the Central African Monetary Union.
The second observation is that this law also contains many provisions which ‘promotes’ the use of cryptocurrencies: They can be used for ‘all electronic transactions’ in the country (art 6) and all monetary obligations denominated in FCFA, existing before the law n°22.004, can be paid in cryptocurrency.
Thirdly, at the governance level, a National Electronic Transaction Regulatory Agency is created (article 13) and is responsible for controlling and managing all public automatic teller machines (ATM) installed by the State on the national territory (article 14). In addition, a cybersecurity law, and a law on the protection of personal data will be adopted as well as the creation of related bodies to ensure the protection of user data and the security of infrastructure related to transactions (article 18).
Source: Afric Law
On 22 April 2022, the Parliament of the Central African Republic (CAR) adopted the Law n°22.004 governing cryptocurrency in the Central African Republic (hereinafter the Law). This is the second time in the world, and the first time in Africa, that a country adopts cryptocurrencies as legal tender. Previously, some other African countries considered the issue of cryptocurrencies.
Source: Afric Law
Central African Republic’s Constitutional Court on Monday ruled that the purchase of citizenship, “e-residency” and land using a cryptocurrency the government launched last month was unconstitutional.
Source: Reuters
The Central African Republic (CAR) has become the latest country to regulate the digital currency industry. Lawmakers in the country adopted a new bill to regulate the nascent industry and facilitate digital currency’s use in financial markets, local outlets report.
As part of the regulations, which the national assembly passed last week, the country is set to create a new regulatory body to oversee the industry. In an interview with Bloomberg, Ndoba said that he believes the new law will push CAR to the frontline in digital asset adoption, changing the narrative that African countries are always the last to adopt new technology.
Source: Coin Geek
The second observation is that this law also contains many provisions which ‘promotes’ the use of cryptocurrencies: They can be used for ‘all electronic transactions’ in the country (art 6) and all monetary obligations denominated in FCFA, existing before the law n°22.004, can be paid in cryptocurrency (art 22). As far as taxation is concerned, cryptocurrency exchanges are not subject to tax (art 8), but the profit made by the trader is (art 16). Additionally, tax contributions can be paid in cryptocurrencies (art 7).
Source: Afric Law
The Central African Republic (CAR) has become the center of a hot buzz in the crypto world amid various reports of it adopting Bitcoin
The cryptocurrency bill was introduced by Justin Gourna Zacko, the minister of Digital Economy, Post and Telecommunications on Thursday and was unanimously approved by the lawmakers in the parliament despite a protest from the opposition, reported RFI.
The crypto law aims to establish a favorable environment for the inclusive growth of the crypto sector in the region. Minister Zacko also highlighted the growing difficulties in sending money from the African nation and believed the adoption of crypto would help in resolving that issue.
The new law would reportedly allow traders and businesses to make crypto payments and also make way for tax payments in crypto through authorized entities.
Source: Coin Telegraph
The CAR “is the first country in Africa to adopt bitcoin as legal tender”, Namsio said.
“This move places the Central African Republic on the map of the world’s boldest and most visionary countries,” he declared.
But a leading opposition figure contested the vote and said that the move aimed at undermining use of the CFA franc.
The CAR is one of the planet’s poorest and most troubled nations, locked in a nine-year-old civil conflict and with an economy heavily dependent on mineral extraction, much of which is informal.
The text of the new legislation covers use of crypto-currencies, and those who use them, in online trade, “smart contracts… by blockchain technology” and “all electronic transactions”.
Cryptocurrencies exchanges are not liable to tax, it adds.
Source: France 24
On 3 July 2022, Central African authorities launched their national crypto initiative, called Sango project, which consists of a cryptocurrency (the Sango coin) and a crypto island. The success of this ambitious project, which aims at positioning the country as an emerging crypto hub.
Source: Afric Law
The Cameroon-headquartered Bank of Central African States (BEAC) has urged the Central African Republic (CAR) to annul a law it passed in late April that made the cryptocurrency Bitcoin legal tender. The bank warned in a letter made public last week that the move breached its rules and could affect monetary stability in the region.
BEAC said the CAR’s decision to make Bitcoin legal tender could compete with the Central African Franc (CFA), the region’s France-backed currency.
Source: Voa News
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