The Dominican Republic and Cryptocurrency

Dominican Republic Cryptocurrency Laws
Regulation of Digital Currencies: Cryptocurrency, Bitcoins, Blockchain Technology

The Dominican Central Bank has indicated that virtual currencies are not backed by the Bank and are not legal currency under Dominican law.[1] Thus, financial institutions authorized to operate in the country may not engage in transactions that use these currencies, and individuals who acquire them or accept them as payment do so at their own risk.[2]

Most recently the Republic has reaffirmed Law 183-02 which asserts that all money debts shall be paid in the agreed, legal, currency.[3] Likewise, in 2017 the Monetary Board and the Central Bank of the Dominican Republic reiterated that local regulated financial institutions are not allowed to invest or perform operations using virtual currency.[4]

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.  The globe below provides links to country-by-country summaries:

Podcast:
The Freeman Law Project – Cryptocurrency Regulation and Taxation: A Brief Primer

Is cryptocurrency legal in the Dominican Republic?

Do you have questions about cryptocurrency, digital currencies, or blockchain technology?
Freeman Law can help with digital currencies, tax planning, and tax compliance.  Contact us now to schedule a consultation or call (214) 984-3410 to discuss your cryptocurrency and blockchain technology concerns.


[1] Banco Central de la Republica Dominicana, Comunicado (June 29, 2017), https://www.bancentral.gov.do/ noticias/avisos/archivos/aviso20170628.pdf, archived at https://perma.cc/C2Y6-FD4G

[2] Id.

[3] https://docs.republica-dominicana.justia.com/nacionales/leyes/ley-183-02.pdf

[4] Banco Central de la Republica Dominicana, Comunicado (June 29, 2017), https://www.bancentral.gov.do/ noticias/avisos/archivos/aviso20170628.pdf, archived at https://perma.cc/C2Y6-FD4G

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