The President of the Central Bank of Ecuador said that crypto regulation is now a necessity.
Guillermo Avellán, Director General of the Central Bank of Ecuador, stated that cryptocurrencies are not illegal in the country, but their trade should be regulated.
This statement came after the Central Bank of Ecuador (BCE) warned citizens about the volatility of cryptocurrencies.
The central bank’s statement also emphasised that cryptocurrency does not meet the requirements to be a legal tender in Ecuador.
These statements coincided with a period when the adoption of cryptocurrencies such as Worldcoin (WLD) continued to increase in Ecuador.
Central Bank of Ecuador: Crypto Ban Not in Question
The statement made by the bank raised concerns about the bans that could be imposed on cryptocurrency trading.
Nevertheless, Avellán published a post on the X platform stating that cryptocurrencies are ‘not banned’ in Ecuador.
Avellán also stated that Ecuador ‘needs a law to regulate investment in crypto assets to protect investors, promote innovation and strengthen dollarisation’.
He suggested that cryptocurrencies could pose ‘risks’ if they are traded as ‘assets not included in the legal framework’.
Some international organisations have previously condemned Ecuador for the inadequacy of its cryptocurrency regulations.
However, after Worldcoin opened an office in the country earlier this year, cryptocurrencies have come under more intense scrutiny.
WLD Interest High in Ecuador
Media outlets report that ‘thousands of Ecuadorians’ have shown a great interest in Worldcoin screening centres since that date.
This has attracted the attention of authorities such as the Supervisory Authority for Companies, Securities and Insurance.
The Supervisory Authority expressed concern on 6 August about the news being spread in the media. Specifically, they highlighted the irregular activities carried out by Worldcoin, which have been widely circulated on social media platforms
Moreover, the Supervisory Authority emphasised that Worldcoin is not regulated by the Ecuadorian state. Therefore, they urged citizens to protect their biometric data and, importantly, to ‘not share’ it.
As WLD’s popularity has grown across Latin America this year, it has also triggered reactions from regulators. Consequently, Worldcoin operators have been prompted to change the way they collect data, particularly in countries such as Chile.