Aruba and Cryptocurrency
Aruba Cryptocurrency Laws
Regulation of Digital Currencies: Cryptocurrency, Bitcoins, Blockchain Technology
Cryptocurrency within Aruba remains controversial, but blockchain technology appears to be of increasing focus.
A 2019 study of financial technology in Latin America indicated that Aruba currently lacks a specific comprehensive law providing a concrete regulatory framework for this technology.[1] At the same time, it indicated that private-sector digital currencies are allowed.[2]
Public Digital Currency Warnings
Notably, Aruban officials view cryptocurrency skeptically. According to the International Monetary Fund, Aruban officials have made public warnings about the potential risks of crypto-assets, including Bitcoin.[3] The primary focus of these warnings is to educate the general public about the difference between legal tender (issued by the Central bank or the State) and digital currencies issued by private firms.[4] Additionally, officials seek to notify the public that digital currencies are highly volatile and possibly subject to illegal activity.[5]
Despite the controversy surrounding cryptocurrency, Aruba increasingly looks toward the use of blockchain technology. Recently, for example, Aruba partnered with Indicio.tech and SITA to trial a distributed ledger technology (DLT) addressing the COVID-19 pandemic.[6] With the technology, Aruba would issue digital certificates to visitors testing negative for COVID-19, enabling these tourists to access shops, restaurants, and other attractions.[7]
Therefore, Aruba lacks a regulatory scheme that addresses cryptocurrency, and officials continue to view it skeptically. Despite this, the nation is looking to incorporate blockchain technology in other arenas.
P.S. Insights on Cryptocurrency Legal Issues
Most jurisdictions and authorities have yet to enact laws governing cryptocurrencies, meaning that, for most countries, the legality of crypto mining remains unclear.
Under the Financial Crimes Enforcement Network (FinCEN), crypto miners are considered money transmitters, so they may be subject to the laws that govern that activity. In Israel, for instance, crypto mining is treated as a business and is subject to corporate income tax. In India and elsewhere, regulatory uncertainty persists, although Canada and the United States are relatively friendly to crypto mining.
However, apart from jurisdictions that have specifically banned cryptocurrency-related activities, very few countries prohibit crypto mining.
Our Freeman Law Cryptocurrency Law Resource page provides a summary of the legal status of cryptocurrency for each country across the globe with statutory or regulatory provisions governing cryptocurrency. Â The globe below provides links to country-by-country summaries:
- Blockchain Technology Explained: What is Blockchain and How Does It Work?
- Legal Issues Surrounding Cryptocurrency
- Cryptocurrency and Bankruptcy
- Cryptocurrency Transactions: Multi-Signature Arrangements Explained
- Cryptographic Hash Functions
- Distributed Ledgers The technology behind Blockchain brings business opportunities and legal complexities
- Hard and Soft Forks: A Detailed and Simplified Explanation of How Blockchains Evolve
- Hash Collisions Explained
- IRS Cryptocurrency Taxation: What you Need to Know in 2020
- Merkle Trees
- Mining Explained: A Detailed Guide on How Cryptocurrency Mining Works
- Preimage Resistance, Second Preimage Resistance, and Collision Resistance
- Quantum Supremacy’s Potential Impact on Cryptocurrencies
- SHA-256
- Smart Contracts
- The History of the Blockchain and Bitcoin
- Blockchain Attacks: Is No One Safe in the World of Cryptocurrencies?
- Cryptographic Hash Algorithms: An Introduction
- Overview of the Most Common Cryptocurrencies
- Double-Spending Problem and Byzantine General’s Problem in Relation to Cryptocurrency
- IRS Cryptocurrency Taxation: What you Need to Know in 2020
- Permission and Permissionless Blockchains
- The Tor Network
- Turing Completeness and cryptocurrency
- Cryptography: Public Key Infrastructure (PKI)
- Blockchain Attacks: Is No One Safe in the World of Cryptocurrencies?
- Decentralized Governance Mechanisms
- The Dark Web and the Deep Web
- The Most Common Cryptocurrencies
- Anti-Collusion | What Is Obfuscation?
- What Is Post-Quantum Cryptography?
Podcast:
Is cryptocurrency legal in Aruba?
Do you have questions about Aruba cryptocurrency, digital currencies, or blockchain technology? Freeman Law can help with digital currencies, tax planning, and tax compliance. Â Contact us now to schedule a consultation or call (214) 984-3410 to discuss your cryptocurrency and blockchain technology concerns.
[1] Table 1, Fintech in Latin America and the Caribbean: Stocktaking, International Monetary Fund (March 2019), https://www.imf.org/en/Publications/WP/Issues/2019/03/26/Fintech-in-Latin-America-and-the-Caribbean-Stocktaking-46677.
[2] Table 1, Fintech in Latin America and the Caribbean: Stocktaking, International Monetary Fund (March 2019), https://www.imf.org/en/Publications/WP/Issues/2019/03/26/Fintech-in-Latin-America-and-the-Caribbean-Stocktaking-46677.
[3] Fintech: The Experience So Far, International Monetary Fund (June 2019), https://www.imf.org/en/Publications/Policy-Papers/Issues/2019/06/27/Fintech-The-Experience-So-Far-47056.
[4] Fintech in Latin America and the Caribbean: Stocktaking, International Monetary Fund (March 2019), https://www.imf.org/en/Publications/WP/Issues/2019/03/26/Fintech-in-Latin-America-and-the-Caribbean-Stocktaking-46677.
[5] Fintech in Latin America and the Caribbean: Stocktaking, International Monetary Fund (March 2019), https://www.imf.org/en/Publications/WP/Issues/2019/03/26/Fintech-in-Latin-America-and-the-Caribbean-Stocktaking-46677.
[6] https://coinmarketcap.com/headlines/news/caribbean-island-blockchain-covid-19-health-credential-system/
[7] https://coinmarketcap.com/headlines/news/caribbean-island-blockchain-covid-19-health-credential-system/
