The Dominican Republic's top financial regulator has issued the nation's citizens with a warning about the dangers of investing in crypto.

Alejandro Fernández, the Dominican Superintendent of Banks, emphasized that the official stance of the Monetary Board is one of prudence. He made it clear that crypto does not have the credentials to become legal tender in the country.

The Monetary Board's Official Stance

The Monetary Board governs key financial bodies, including the Central Bank of the Dominican Republic. Fernández stated that there are inherent risks and challenges with using a technology that is still evolving and lacks a specific regulatory framework in the nation.

"The official position regarding cryptoassets is basically one of prudence - an alert to the population about the risks that cryptoassets can pose," Fernández said.

Crypto's Volatility and Speculative Nature

Fernández added that while cryptocurrencies have gained global popularity, they do not meet the requirements to be considered legal tender in the Dominican Republic.

He noted that crypto displays signs of extreme volatility and represents dangers to investors due to its speculative and unregulated nature.

Additionally, he warned that although some people are attracted to the absolute freedom of crypto, tokens could be used to fund illicit activities and cyber-blackmail campaigns.

The Call for Education and User Protection

Despite acknowledging the innovative potential of blockchain technology, the Superintendent of Banks urged financial authorities to prioritize crypto user protection and education about the associated risks.

Fernández emphasized that education and user protection measures should become a priority for Dominican regulators. He also called on citizens to improve their online security practices.

Online Security Practices

Fernández advised citizens not to share sensitive personal information or passwords on public networks. He stressed the need for caution with suspicious messages and warned against clicking on potentially harmful links, especially those sent via WhatsApp, to prevent account hacking.

International Warnings

The Latin American Financial Action Task Force has previously warned the Dominican Republic to strengthen its crypto regulation. This further underscores the importance of the nation's cautious approach toward cryptocurrencies.