Ecuador's Cryptocurrency Landscape: Legal Status and Regulatory Outlook

Ecuador maintains a cautious stance on cryptocurrencies. While trading digital assets like Bitcoin is not illegal, the Central Bank of Ecuador (BCE) has clarified that cryptocurrencies are not recognized as legal tender or authorized means of payment. According to Article 94 of the Organic Monetary and Financial Code (COMF), the U.S. dollar remains the sole legal currency in Ecuador. This position was reaffirmed through resolutions issued by the Monetary Policy and Regulation Board (JPRM) in 2022 and 2023, which explicitly exclude cryptocurrencies from the list of approved electronic payment methods.

Despite the absence of a ban on buying or selling cryptocurrencies, the BCE has issued warnings about the risks associated with their use. The bank emphasizes that cryptocurrencies are not backed by any authority and are highly volatile, posing potential financial risks to users. Furthermore, any attempt to use cryptocurrencies as a payment method is prohibited, and such actions may be subject to investigation and sanctions.

The Central Bank of Ecuador informs citizens that bitcoin is not an authorized means of payment for use in the country. Bitcoin is a cryptocurrency that has no support, as its value is based on speculation. Financial transactions made through bitcoin are not controlled, supervised, or regulated by any entity in Ecuador, which is why its use represents a financial risk for those who use it (1).

In recent years, Ecuador has taken steps to regulate the fintech sector, including the enactment of the Fintech Law in December 2022. This law aims to foster technological innovation within the financial sector and outlines specific categories for fintech activities. However, the law does not provide a clear regulatory framework for cryptocurrencies. As a result, while the trading of cryptocurrencies is not prohibited, their use as a means of payment remains unauthorized, and the regulatory environment continues to evolve.

Source:
(1) Central Bank of Ecuador
(2) Expats Ecuador

Last updated: 08-05-2025 Disclaimer: This article does not provide legal advice. If you need legal advice, please contact an attorney directly.