Crypto Is Volatile, Regulator Warns
Fernández added that while “cryptocurrencies have gained popularity globally,” they “do not meet the requirements to be considered legal tender in the Dominican Republic.”
He went on to note that crypto displays signs of “extreme volatility.” He added that tokens represent “dangers” to investors because of their “speculative” and “unregulated” nature.
Additionally, Fernández said that while some people are drawn to the “absolute freedom” of crypto, tokens could also be used to fund “illicit activities and cyber-blackmail campaigns.”
The regulator conceded that blockchain technology has “innovative potential.” However, the Superintendent of Banks called on “financial authorities” to prioritize crypto user protection and “education about the associated risks” of crypto.
Fernández said that education and user protection measures should become a “priority” for Dominican regulators.
The Superintendent of Banks further warned citizens to improve their “online security practices.”
He explained that citizens should not “share sensitive” personal information or passwords on “public networks.”
And Fernández underlined the public’s “need to be cautious with suspicious messages.”
Dominican Republic creates state miner to explore for rare earths https://t.co/n2jM5OVutD pic. .com/2ggV9O33vL
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He said citizens should be especially careful when receiving links “sent by WhatsApp” that could potentially “result in account hacking.”
The Latin American Financial Action Task Force has previously warned the Dominican Republic to shore up its crypto regulation.
Crypto popularity and adoption rates remain high in the nation, with crypto exchanges like Binance continuing to expand their operations in the country and the greater LATAM region.