Is crypto legal in Ecuador? Rules & regulation (2026)

Legal framework

Código Orgánico Monetario y Financiero (COMF) Arts. 94 & 98; Ley de Prevención de Lavado de Activos (Oct 2025 revision); JPRFM Resolution JPRFM-2025-004-F (FinTech by-laws); supervised by Banco Central del Ecuador (BCE), UAFE, Superintendencia de Bancos (SB), and SCVS

Status by sub-area

• Stablecoins

  None

  Ecuador has no specific framework for private stablecoin issuance, reserve backing, or redemption rights. The BCE has internally simulated a tokenised-dollar CBDC concept but no legislation or pilot has launched.

  Still pending: Private stablecoin framework not enacted; CBDC pilot not launched

• Exchanges / VASP

  Partial

  No dedicated exchange or VASP licence exists. Operators must register with the UAFE for AML/CFT and, if qualifying as FinTechs, comply with the 2025 by-laws (USD 200,000 capital, local incorporation); a formal VASP registry is in draft.

  Still pending: VASP registry draft awaiting enactment

• Token Offerings

  Partial

  No dedicated ICO or STO regime exists. Tokens with investment-contract characteristics fall under the Securities Market Law and SCVS supervision; the Companies Act permits blockchain-based share tokenisation under existing corporate law.

  Still pending: Dedicated ICO/STO regime not yet enacted

• Custody

  Proposed

  No formal custody rules covering client-asset segregation, qualified-custodian status, proof of reserves, or insurance are in force. The draft PSAV chapter proposes segregation and analytics requirements but has not been enacted.

  Still pending: Draft PSAV custody chapter (segregation, analytics) awaiting enactment

• DeFi

  Unclear

  Ecuador has issued no guidance specific to decentralised finance protocols, DAOs, or front-end interfaces. The general UAFE obligation on VASPs could in principle extend to DeFi interfaces, but no enforcement action or formal statement has been made.

  Still pending: No DeFi-specific guidance issued; regulatory treatment of protocols unclear

• Tax

  In force

  The SRI taxes realised crypto gains as Ecuador-source ordinary income under the general income-tax framework: progressive rates up to 35% for individuals and 25% flat for companies. No holding-period reduction, staking/airdrop guidance, or dedicated crypto reporting schedule has been published.

Key points: crypto & digital assets in Ecuador

1. 01Not Legal Tender, COMF Arts. 94 & 98

   Articles 94 and 98 of the COMF prohibit crypto as an authorized means of payment; the BCE and JPRFM have issued public reminders that using crypto as payment may be referred to the Attorney General's Office for sanction.

   bce.fin.ec cosede.gob.ec

2. 02UAFE AML Registration Mandatory

   VASPs are designated obligated subjects under Ecuador's AML Law (revised October 2025) and must register with UAFE, apply KYC/CDD controls, monitor transactions, and file suspicious-activity reports.

   uafe.gob.ec manimama.eu

3. 032025 FinTech By-Laws (JPRFM-2025-004-F)

   JPRFM Resolution JPRFM-2025-004-F formalised requirements for FinTech service providers: minimum paid-in capital of USD 200,000, local incorporation as a sociedad anónima, liability insurance, quarterly cybersecurity reports, and special SB registration.

   bce.fin.ec

4. 04Draft VASP Registry (PSAV) Pending

   A dedicated PSAV chapter under the COMF reform is under legislative debate; once enacted it would require exchanges to segregate client funds and share wallet analytics with UAFE, but no enactment date is confirmed.

   lexis.com.ec nmslaw.com.ec

5. 05Securities-Law Overlap for Token Offerings

   Tokens bearing investment-contract characteristics fall under the Securities Market Law and SCVS supervision; the Companies Act also permits blockchain-based share tokenisation for sociedades anónimas.

   freemanlaw.com lexis.com.ec

6. 06SRI Taxes Crypto Gains as Ordinary Income

   The Servicio de Rentas Internas (SRI) treats realised crypto gains as Ecuador-source income: up to 35% progressively for individuals and 25% flat for companies; no holding-period relief or crypto-specific exemptions are in force.

   ciat.org taxsummaries.pwc.com

Timeline of decisions

1. 14 Oct 2025Decision · official
   National Assembly Archives Blockchain & Digital Assets Bill

   With 145 votes in favour, Ecuador's legislature archived the Proyecto de Ley Orgánica sobre Uso y Regulación de Tecnologías Blockchain after negative technical opinions from the BCE, Banking Superintendency, and SCVS; Ecuador therefore has no dedicated digital-asset statute and the bill cannot be reconsidered in the same legislative period.

   Asamblea Nacional del Ecuador

2. 1 Aug 2024Guidance · official
   BCE Reaffirms Crypto Payment Ban Amid Worldcoin Expansion

   The Central Bank publicly warned that cryptoassets are 'not legal tender, nor an authorised means of payment,' invoking Article 98 of the COMF and threatening prosecutorial referrals; the SCVS separately warned citizens against sharing biometric data with Worldcoin, which it said was unregulated and posed privacy risks.

   Banco Central del Ecuador

3. 25 Mar 2024Law · official
   SCVS Resolution 2024-0006: VASPs Designated AML Obligated Subjects

   The Superintendency of Companies (SCVS) issued Resolution SCVS-INC-DNCDN-2024-0006 formally classifying Virtual Asset Service Providers as obligated subjects under Ecuador's AML/CFT framework supervised by the UAFE — the first national regulation to define 'virtual assets' — requiring KYC, a compliance officer, and reporting of transactions at or above USD 10,000.

   Superintendencia de Compañías, Valores y Seguros (SCVS)

4. 1 Jan 2024Enforcement
   Banking Sector Fined USD 1.2 Million for Facilitating Crypto Transactions

   Ecuador's financial supervisor levied fines totalling USD 1.2 million on 12 financial institutions during 2024 for processing crypto-related transfers in breach of JPRM resolutions prohibiting banks from handling unauthorised payment instruments, marking the first major wave of enforcement actions against the banking sector.

   Coinfomania (citing banking supervisor data)

5. 7 Aug 2023Law · official
   JPRM Resolutions 2023-014-M and 2023-015-M Codify Payment Methods, Explicitly Exclude Crypto

   The Monetary Policy and Regulation Board issued two resolutions: JPRM-2023-014-M classifying authorised payment instruments (physical, electronic, e-wallets) and JPRM-2023-015-M reaffirming the USD as sole legal tender; neither list includes cryptoassets, binding all financial institutions to reject crypto-denominated settlements.

   Junta de Política y Regulación Monetaria / Banco Central del Ecuador

6. 26 Feb 2018Guidance
   BCE Formally Clarifies Crypto Legal Status: Personal Trading Permitted, Payment Use Illegal

   Following Bitcoin's 2017 price surge and rising domestic interest, the BCE and JPRM issued a formal public clarification that while purchasing or selling cryptoassets online is not prohibited, using them to settle goods or services remains expressly illegal under Articles 94 and 98 of the COMF.

   La República (reporting BCE/JPRM position)

7. 1 Dec 2017Law
   National Assembly Votes to Dismantle Dinero Electrónico — World's First CBDC Experiment Ends

   Ecuador's legislature passed a law to decommission the BCE-operated Sistema de Dinero Electrónico after only three years of operation; peak account balances reached just USD 11.3 million due to low merchant acceptance and distrust of a central-bank-held dollar substitute, and the system was formally wound down in 2018.

   Cato at Liberty (citing National Assembly legislation and BCE records)

8. 12 Sept 2014Law · official
   Código Orgánico Monetario y Financiero Enacted — Bitcoin Banned as Payment, State E-Money Authorised

   Ecuador's foundational monetary code (Official Registry No. 332) established the USD as sole legal tender (Art. 94) and prohibited 'circulation and receipt of currency not authorised by the JPRM' (Art. 98), effectively banning Bitcoin and all decentralised cryptocurrencies as payment instruments, while simultaneously authorising the BCE to issue its own state electronic money.

   Código Orgánico Monetario y Financiero — Official Text (via COSEDE)

Sources

1. 1.bce.fin.ec/en/cryptocurrencies-are-not-legal-tender-nor-an-authorized-means-of-p
2. 2.cosede.gob.ec/wp-content/uploads/2024/03/Codigo-Organico-Monetario-y-Financiero-202
3. 3.uafe.gob.ec/wp-content/uploads/2025/10/A1-LEY-LAVADO_-OCTUBRE_-2025.pdf
4. 4.bce.fin.ec/storage/JPRFM/resoluciones/JPRFM-2025-004-F.pdf
5. 5.nmslaw.com.ec/blog/2025/10/20/ecuador-ley-reformatoria-codigo-organico-monetario-fi
6. 6.freemanlaw.com/cryptocurrency/ecuador-and-cryptocurrency/
7. 7.lexis.com.ec/blog/legaltech/activos-digitales-en-ecuador-desafios-regulatorios
8. 8.ciat.org/Biblioteca/DocumentosdeTrabajo/2025/WP_07_2025.pdf
9. 9.taxsummaries.pwc.com/ecuador/corporate/other-taxes
10. 10.manimama.eu/vasp-regulation-in-ecuador/