The General Manager of the Ecuadoran Central Bank, Guillermo Avellán, clarified that crypto is not illegal in the country but believes that trading should be regulated. This statement comes after an official communication from the Central Bank of Ecuador (BCE) cautioned citizens about the volatility of crypto and stated that crypto did not meet the requirements of legal tender in the nation. Avellán’s comments aim to alleviate fears of a potential ban on crypto trading and emphasize that investment in cryptoassets is not prohibited by the bank. However, he also stressed the importance of implementing a law to regulate investment in cryptoassets to protect investors, promote innovation, and strengthen dollarization in Ecuador.
The Central Bank of Ecuador has the authority to ensure that the only authorized means of payment in the country is the United States dollar. Avellán highlighted the necessity of establishing regulations around crypto trading to prevent the commercialization of assets outside the legal framework, which he believes could pose risks. International bodies have previously criticized Ecuador for its lack of crypto regulation, and the recent influx of Worldcoin adoption in the country has raised concerns among regulatory authorities. Despite the increased interest in crypto, the Superintendency of Companies, Securities, and Insurance in Ecuador has expressed concerns about irregular activities related to Worldcoin and advised citizens not to provide their biometric data.
Media reports suggest that thousands of Ecuadorians have been visiting Worldcoin scanning centers, indicating a surge in interest in the WLD token in Ecuador. However, the Superintendency has emphasized that Worldcoin is not regulated by the Ecuadoran state, prompting regulatory pushback against the popular crypto token. The Superintendency’s warnings reflect a broader trend of regulatory scrutiny against Worldcoin in Latin America, leading the operators to make adjustments in the way they collect data in countries such as Chile. The increasing popularity of WLD across the region has prompted regulatory authorities to monitor and address potential risks associated with unregulated crypto trading.
The positive image of the President of Ecuador, Daniel Noboa, in August suggests a favorable perception of his leadership among South American heads of state. This ranking reflects public sentiment towards political leaders in the region and may influence policy decisions related to economic and regulatory matters, including crypto trading. Ecuador’s stance on crypto regulation and the adoption of cryptocurrencies like Worldcoin could potentially impact the country’s financial landscape and investor sentiment. As the government navigates the challenges of regulating cryptoassets, including the need to protect investors and promote financial innovation, it faces a balancing act between fostering a conducive environment for crypto adoption and safeguarding against potential risks associated with unregulated trading.
