The President of the Central African Republic, Faustin Archange Touadera, approved the cryptocurrency regulation bill passed by the National Assembly on April 22. The media generally reported that the Central African Republic is the first country in Africa and the second country in the world to adopt Bitcoin as legal currency (see Golden Finance’s previous report: the birth of the second country to adopt Bitcoin as legal currency).
Golden Finance has noticed that the official language of the Central African Republic uses Bitcoin as the reference currency (monnaie de référence). Although the term legal tender is not used directly, the Act still provides the following: all transactions related to cryptocurrencies, any transaction initiated by a natural or legal person, public or private, in any capacity, without restriction, All electronic transactions can be represented in cryptocurrencies; any economic operator must accept cryptocurrencies as a form of payment when offered for the purchase or sale of goods or services; cryptocurrencies can be exchanged through platforms recognized and authorized by the Central African government Pay taxes; cryptocurrency transactions do not need to pay taxes, all monetary obligations denominated in CFA francs can be paid in cryptocurrency, etc. Obviously, they already have the essence of legal tender (legal tender).
For a more complete understanding of the Central African Republic’s Bitcoin Act, Golden Finance compiled the Central African Republic’s Bitcoin Act.
Central African Republic Cryptocurrency Regulation Act
reviewed and approved by the National Assembly
President of the Republic, Head of State
The following laws are enacted:
Chapter 1: Objectives and Scope of Application
Article 1: The purpose of this law is to regulate all transactions related to cryptocurrencies in the Central African Republic, initiated by natural or legal persons, public or private, in any capacity, without restriction .
Bitcoin will rightly be considered the reference currency (monnaie de référence).
As such, it sets out the legal framework and modalities for implementing and securing such transactions, crimes, sanctions and means of evidence in this regard.
The above content does not affect the application of the Monetary Integration Law ( Editor’s Note: refers to the Central African Franc) .
Article 2: This Law applies to natural or legal persons of public or private law
– A person who conducts online trading activities related to cryptocurrencies.
– Its activity is to provide the public with access to cryptocurrencies through information and communication technologies
– The provision of services through BLOCKCHAIN technology, resulting in the conclusion of smart contracts to procure goods or services.
Article 3: The following are the objects of the provisions of this law
Any form of purchase, withdrawal or sale of cryptocurrencies is subject to the provisions of this law.
However, exchanges or transactions using cryptocurrency platforms are still subject to non-contradictory rules applicable to commercial and civil matters, in which case the rules set forth in the current text shall be followed.
Chapter 2: Definitions
Article 4; For the purposes of this Act, the following definitions shall apply
– CRYPTOMONIA: A digital currency (digital asset) issued on a peer-to-peer basis that does not require a central bank, is based on blockchain, and can be used through a decentralized computer network.
BITCOIN: Reference cryptocurrency.
BLOCKCHAIN: A blockchain consists of continuously generated data records linked together in the chronological order of their verification in the form of blocks, each block and its order being protected from modification.
MINER, an operation that includes verifying transactions, such as those made in Bitcoin, by encrypting data and recording it on the blockchain. Operators, individuals or companies that use computing power (processors, computers or graphics cards for video games) to verify transactions are called “miners”. In practice, miners use software to solve a mathematical problem that allows transactions to be verified.
MINEURS, people who mine cryptocurrency transactions based on blockchain technology with software, and mining infrastructure.
VOLATILE, changes observed in the prices of cryptocurrencies, as they are denominated currencies, with no fixed value. They are traded against the gold standard, the US dollar or any other currency.
Chapter 3: Cryptocurrency Business
Article 5: The exchange rate between cryptocurrencies and the currency used shall be freely determined by the market in the Central African Republic .
Article 6: All electronic transactions in the Central African Republic may be represented in cryptocurrencies that are legally recognized and subject to regulatory texts .
Article 7: Taxes can be paid in cryptocurrencies through platforms recognized and authorized by the Central African government.
Article 8: Cryptocurrency transactions are not subject to tax .
Article 9: For accounting purposes, the legal tender used is recognized as the reference currency in the Central African Republic.
Article 10: Any economic operator must accept cryptocurrencies as a form of payment when offered for the purchase or sale of goods or services.
Article 11: Without prejudice to the actions of the private sector, the State shall provide alternatives to allow users to trade in cryptocurrencies and to automatically and instantly convert cryptocurrencies into currencies used in the Central African Republic.
Article 12: The limitations and functions of the automatic and instantaneous exchange and issuance alternatives are specified by the regulatory text.
Chapter 4: Agencies that Control or Regulate Electronic and Cryptocurrency Transactions
Article 13: The National Electronic Transaction Management Agency, referred to as ANTE, is hereby established.
Article 14: This agency is responsible for the control and administration of all public automated teller machines (ATMs) installed by the state on the national territory.
Article 15: Cryptocurrency miners are considered independent actors and must declare their income in the legal tender of the Central African Republic.
Oversight of cryptocurrency miner activities is guaranteed by regulation.
The reference rate is the cryptocurrency rate on the mining date.
Article 16: Any profits made by traders are subject to the General Tax Act.
Article 17: New entities offering exchange services between virtual currencies and other currencies, as well as offering custody and portfolio services are subject to the Act.
Chapter 5: Data Protection and Infrastructure Security
Article 18: Laws on cybersecurity/cybercrime and laws on the protection of personal data shall be adopted and promulgated, and relevant institutions shall be established to ensure the protection of user data and the security of infrastructure related to transactions.
CHAPTER VI: CRIMINAL PROVISIONS
Article 19: In addition to the provisions of the Penal Code and the current text, any person who violates the provisions of this law shall be punished by imprisonment for ten (10) to twenty (20) years and/or a fine of 100,000,000 to 1,000,000 CFA francs.
Chapter VII: Miscellaneous Provisions, Transitional and Final Provisions
Article 20: The Central Bank shall issue the corresponding regulations within the period specified in Article 25 of this Law.
Article 21: Those who, because of well-known and obvious facts, do not have access to the technology that allows the trading of cryptocurrencies are excluded from the obligations expressed in Article 11 above of this law.
Article 22: All monetary obligations denominated in CFA francs existing before the date of entry into force of this law may be paid in cryptocurrencies .
Article 23: Before the entry into force of this Law, the State shall establish a trust fund through the Central Bank to guarantee the automatic and instant exchange of cryptocurrencies into legal tender of the alternatives offered by the State as mentioned in Article 8 above.
Article 24: All actors involved in cryptocurrency transactions have thirty (30) days from the date of promulgation of this law to comply with the law.
Article 25: The statutes of ANTE shall be ratified by decree issued by the Council of Ministers.
Article 26: This law shall enter into force on the date of registration and publication in the Journal Officiel.
Bangui, April 22, 2022
Professor Faustin Archange Touadera
The President of the Republic, Head of State Prof. Faustin Archange TOUADERA noted with satisfaction and enthusiasm the unanimous decision of the National Assembly on the establishment of the legal framework for regulating cryptocurrencies and the draft law establishing Bitcoin as the official currency of the Central African Republic. The adoption of Bitcoin as the official currency is a decisive step in opening up new opportunities for our country.
With this historic decision, the economic recovery and peacebuilding plan has entered a new phase, and the Executive has shown coherence in implementing the agenda, which is expected to deliver strong and inclusive growth for development and Economic performance, and ultimately, prosperity for our fellow citizens.
The President of the Republic, the Head of State, will support all necessary efforts, abiding by the law, to complete this process and make the Central African Republic the most courageous and visionary country in the world, as it means accepting cryptocurrencies as a means of payment.
The Central African Republic was not only the first country in Africa to adopt Bitcoin as a reference currency (monnaie de référence), but also the first country in the world to unanimously pass a bill governing cryptocurrencies. We are embarking on a new path that will mark a new phase for our nation, while realizing that in order to accomplish our mission, we will have to face all kinds of difficulties.
In a progressive, forward-looking vision, our nation must be able to pursue its own destiny, joining those who not only fully understand the importance of blockchain technology, but are eager to legislate for it.
Our first consideration is how the lives of our citizens will change and how we can create a stable and prosperous economy. We must do everything within our power for the common good, bearing in mind the legacy we have a responsibility to leave to future generations.
Bangui, 26 April 2022
Obed Namsio, Minister of State and Director of the President’s Cabinet
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/central-african-republic-bitcoin-act-full-text/
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