Law governing cryptocurrencies in the CAR: “Bitcoin will rightly be considered as a reference currency” [Document]

Digital Business Africa offers you the full law governing cryptocurrencies in CAR

Law n°22.004 of April 22, 2022 governing cryptocurrency in the Central African Republic

Chapter 1 ‐ Object and scope

Art.1.‐ The purpose of this law is to govern all transactions related to cryptocurrencies in the Central African Republic, without restriction, with unlimited power of issue in all its transaction and in any capacity, carried out by natural or legal persons, public or private.

Bitcoin will rightly be considered as the reference currency.

As such, it sets the legal framework and the procedures for implementing and securing these transactions, the offences, penalties and the means of proof in this regard.

The above is without prejudice to the application of the law on monetary integration.

Art.2.‐ This Law applies to natural or legal persons governed by public or private law:

  • that perform e-commerce activities related to cryptocurrencies;
  • whose business is to provide access to cryptocurrency services to the public through the

through Information and Communication Technologies;

  • that offer services by means of BLOCKCHAIN ​​technology which gives rise to the

conclusion of a smart contract to procure goods or services.

Art.3.‐ Are subject to the provisions of this Law, transactions related to cryptocurrencies, of any nature whatsoever, taking the form of a purchase, a withdrawal, a sale.

However, exchanges or transactions using cryptocurrency platforms remain subject to the non-contrary rules, applicable in commercial and civil matters and in this case those provided for by the texts in force.

Chapter 2 – Definitions Art.4.- For the purposes of this law, the following terms mean:

CRYPTOCURRENCY : digital currency issued peer-to-peer (digital asset), without the need for a central bank, based on a blockchain (Blockchain) and usable by means of a decentralized computer network;

Bitcoin : reference cryptocurrency;

BLOCKCHAIN : chain of blocks consisting of recording of data produced continuously, in the form of blocks linked to each other in the chronological order of their validation, each of the blocks and their sequence being protected against any modification;

UNDERMINE : operation which consists in validating a transaction, carried out, for example, in bitcoins, by encrypting the data and recording it in the Blockchain. Operators, individuals or companies, who use computing power (of processors, computers or graphics cards used for video games) to validate a transaction are called “minors”. In practice, miners use software to solve a mathematical problem, a resolution that results in the validation of a transaction;

MINORS: people who mine cryptocurrency operations based on Blockchain technology with mining software and infrastructure;

VOLATILITY : variation observed in the price of cryptocurrencies, given that it is a denationalized currency and does not have a fixed value. They are exchanged according to the gold standard, Dollar or any other currency;

Chapter 3 ‐ Cryptocurrency operations


Art.5.‐
The exchange rate between cryptocurrencies and the currency used in the Central African Republic is freely determined by the market.

Art.6.‐ All electronic transactions in the Central African Republic can be expressed in legally recognized cryptocurrency and framed by regulatory texts.

Art.7.‐ Tax contributions can be paid in cryptocurrency through platforms recognized and authorized by the Central African Government.

Art.8.‐ Cryptocurrency exchanges are not subject to tax.
Art.9.‐ For accounting purposes, the legal currency used in the Republic

Central African Republic is considered as the reference currency

Art.10.‐ Any Economic Agent is required to accept cryptocurrencies as a form of payment when offered for the purchase or sale of a good or service.

Art.11.‐ Without prejudice to the actions of the private sector, the State provides alternatives allowing the user to carry out transactions in cryptocurrency and to have automatic and instantaneous convertibility of cryptocurrencies into the currency used in the Central African Republic.

Art.12.‐ The limits and operation of automatic and instantaneous conversion and issue alternatives are specified by regulatory texts.

Chapter 4 ‐ The control or regulatory body for electronic transactions and cryptocurrency

Art13.‐ A National Electronic Transaction Regulation Agency, abbreviated as ANTE, is hereby created.

Art.14.‐ The Agency is responsible for controlling and managing all public automated teller machines (ATM) installed by the State on the national territory.

Art.15.‐ Cryptocurrency miners are considered independent players and must declare their earnings in currency that is legal tender in the Central African Republic.

The supervision of the activities of cryptocurrency miners is provided by regulation.

The reference price being the cryptocurrency price on the date of mining.

Art.16.‐ Any profit made by the trader is subject to the General Tax Code.

Art.17.‐ The provision of exchange services between virtual currencies and legal currencies and the provision of custodial wallet services are new entities subject to this se.

Chapter 5 ‐ Data protection and infrastructure security

Art.18.‐ A law on Cybersecurity/cybercrime and a law on the protection of personal data will be adopted and promulgated as well as the creation of related bodies to ensure the protection of user data and the security of infrastructure related to transactions.

Chapter 6 – Penal provisions

Art.19.‐ In addition to the provisions of the Penal Code, and of the texts in force, any contravener of the provisions of this law is liable to a penalty of imprisonment of ten to twenty years and/or a fine of 100,000,000 FCFA to 1,000 .000.000 FCFA.

Chapter 7 – Miscellaneous, transitional and final provisions


Art.20.‐
The Central Bank issues the corresponding regulation within the period provided for in article 25 below of this law.

Art.21.‐ Excluded from the obligation expressed in article 11 above of this Law are those who, by a notorious and obvious fact, do not have access to technologies that allow transactions in cryptocurrency.

Art.22.‐ All monetary obligations denominated in FCFA existing before the date of entry into force of this law can be paid in cryptocurrency.

Art.23.‐ Before the entry into force of this law, the State guarantees through the Central Bank by the creation of a Trust, the automatic and instantaneous convertibility of cryptocurrencies into legal tender of the alternatives provided by the State referred to in 8 above.

Art.24.‐ All actors involved in cryptocurrency transactions have thirty days to comply with this law from the date of its promulgation.

Art.25.‐ The statutes of the ANTE are approved by decree issued by the Council of Ministers.

Art.26.‐ This law, which takes effect from the date of its promulgation, is registered and published in the Official Journal.

Done in Bangui, April 22, 2022

Teacher. Faustin Archange TOUADERA

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Law governing cryptocurrencies in the CAR: “Bitcoin will rightly be considered as a reference currency” [Document]


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