Cuba Lays Groundwork to Legalize Cryptocurrency Transactions

Cuba’s communist government is trying to legalize and regulate the growing use of cryptocurrencies on the island as citizens ramp up transactions to evade state controls.

The central bank said Friday that it’s drafting rules for the legal use of such currencies in commercial transactions, and to issue licenses for providers of services connected with virtual assets. Bitcoin, Ethereum, Litecoin and Tether are already the most commonly used digital currencies on the island, the bank said.

Citizens in countries with high levels of capital controls and inflation often prize such digital assets for their independence from state curbs, and as ...