Dominican Republic’s Top Financial Regulator Issues Crypto Warning
The Dominican Republic’s top financial regulator has issued the nation’s citizens with a warning about the dangers of investing in crypto.
Per Acento, Alejandro Fernández, the Dominican Superintendent of Banks, said that the “official position” of the Monetary Board toward crypto was “one of prudence.”
He also told Dominicans that crypto did not have the credentials to become “legal tender” in the country.
The Monetary Board is the body that governs official bodies such as the Central Bank of the Dominican Republic.
Fernández said that there were “risks and challenges” inherent with the use of a “technology that is still evolving and that does not have a specific regulatory framework” in the nation.
“The official position regarding cryptoassets is basically one of prudence – an alert to the population about the risks that cryptoassets can pose.”
Fernández added that while “cryptocurrencies have gained popularity globally,” they “do not meet the requirements to be considered legal tender in the Dominican Republic.”
He went on to note that crypto displays signs of “extreme volatility.” He added that tokens represent “dangers” to investors because of their “speculative” and “unregulated” nature.
Additionally, Fernández said that while some people are drawn to the “absolute freedom” of crypto, tokens could also be used to fund “illicit activities and cyber-blackmail campaigns.”
The regulator conceded that blockchain technology has “innovative potential.” However, the Superintendent of Banks called on “financial authorities” to prioritize crypto user protection and “education about the associated risks” of crypto.
Fernández said that education and user protection measures should become a “priority” for Dominican regulators.
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