This is general info about crypto regulation in Ecuador. A more precise overview will be published later. However, if you find any inaccuracy or have other feedback - please write us in telegram @ilya_ii or by e-mail - editor@cryptopenetration.com
Ecuador is a sovereign state (1) with a population of 17 million people. You can get a visa to Ecuador from any country for a period of up to 90 days; it will be considered a tourist visa. There are no (2) special digital nomad visas in the country.
Ecuador has a considerable danger security level according to our rating. Jurisdiction has 37.9 points (from 100) for safety level in Numbeo crime rating (3). The homicide level (4) is 27.0 per 100,000 inhabitants a year. Level of firearm-related death (5) 3.37 per 100,000 inhabitants a year.
In 2018, the Central Bank of Ecuador published (6) a statement informing the public that Bitcoin is neither legal tender nor an authorized means of payment in the country; it clarified, however, that its purchase and sale -as well as that of any cryptocurrency- through the internet is not prohibited.
Cryptocurrencies are not legal tender in the country, therefore paying salaries in cryptocurrencies is prohibited in Ecuador.
Ecuador was one of the first countries in the world to launch a state-run digital currency, the "Sistema de Dinero Electrónico" (Electronic Money System), in 2015. The Central Bank of Ecuador oversees the regulation of this system and issues licenses for companies to operate as electronic money issuers.
The Organic Law (7) for the Development, Regulation, and Control of Financial Technology Services, also known as the Fintech Law (the Law), came into effect on December 22, 2022, through its publication in the second supplement of the Official Register No. 215. Its main objective is to provide legal security to financial technology companies operating in the country, promote foreign investment, and provide users with secure access to services that protect their data.
According to the Superintendency (8), the only institutions in Ecuador that are not authorized to make investments in cryptocurrencies in Ecuador are financial entities. The reason is legal since the Monetary and Financial Code prohibits it. But there is also a financial reason to consider and it is the high risk behind these operations.
Ecuador intends to issue regulations on cryptocurrencies in 2022. This was stated by Banco Central del Ecuador (PIB) manager Guillermo Avellán, in an interview with Bloomberg Linea (9).
The headline PIT rate is 37% based on PWC (10). Headline CIT rate is 22%, 25%, or 28%, depending on the company's shareholders structure (corporate structure) and disclosure compliance, according to PWC (10). Capital gains generated by the transfer of equity rights (i.e. shares) are subject to a 10% income tax rate by PWC (10). The income received for mining in Ecuador (11) must be declared as an unjustified patrimonial income taxed with Income Tax.
3)👉🏻Crime Index by Country 2023 Mid-Year
4)👉🏻List of countries by intentional homicide rate
5)👉🏻List of countries by firearm-related death rate
6 and 9)👉🏻EXCLUSIVA: Banco Central asegura que Ecuador reglamentará el uso de criptomonedas este año
8)👉🏻 10 instituciones sin autorización promocionan inversiones en bitcoin en Ecuador
10)👉🏻 Ecuador Overview
11)👉🏻El régimen jurídico fiscalde las criptomonedas en Ecuador
Brazil is a big economy with low legal barriers for crypto companies and here it's why.
Review of republicans' approach to crypto regulation in the US and their next steps.
We tell you about the features of crypto regulation in the world in 2023