Central Bank warns of crypto currencies

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Central Bank of Samoa.

Central Bank of Samoa.

The Central Bank of Samoa has warned the public of crypto currencies, saying they are not issued or regulated by the Central Bank. 

Sounding the warning in a media release, the bank said that crypto currencies do not have legal tender status to be accepted as a currency in Samoa. 

“Investment in such digital currencies is considered very risky and speculative in nature. People who invest in any of the crypto currencies do so at their own risk. 

“There is no guarantee that crypto currencies will be accepted as a medium of exchange or will hold their value. 

“The Central Bank does not currently endorse unregulated crypto currencies like bitcoin, Onecoin or any crypto currency that has been promoted in Samoa,” stated the media release.  

The Central Bank said it does not encourage anyone to invest in them, but advised that anyone found to be promoting crypto currency or digital currency should be a financial institution and adhere to the provisions of the Amendment Act 2018.

“This means it must have a valid business licence issued in Samoa and is required to follow the Central Bank’s reporting requirements for financial institutions.”

The Central Bank said it is also looking at the potential use of block chain technology as a platform for promoting financial inclusion in Samoa.

The bank defines virtual currencies as bitcoin, Onecoin, ethereum, EOS, Lite Coin and others.

© Samoa Observer 2016

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