Ecuador Banking Ban on Crypto Transactions: What It Means for Users
Nov, 16 2025
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Ecuador Crypto Transaction Summary
Based on current regulations as of May 2025
Transactions over $200 are typically blocked by banks under Resolution 002-23.
Current workaround fees average 4.8% in Ecuador vs. 1.2% in crypto-friendly countries.
Critical Note
Banks block transactions over $200. Your transaction amount ($) triggers automatic blocking under Ecuador's TMS Version 3.1.
Workaround Options
- USDT Conversion $
- P2P Trade $
Recommended Action
Keep transactions under $200 to avoid blocking. Use USDT as bridge currency with multiple small transactions if needed.
Ecuador doesnât allow banks to touch cryptocurrency. Not even a little. If you try to send money from your Banco Pichincha account to Binance or OKX, it gets blocked. Your account might even get frozen. This isnât a rumor-itâs policy, enforced since early 2022 and tightened every year since.
Why Does Ecuador Ban Crypto Through Banks?
Ecuador has used the US dollar as its official currency since 2000. That means no local currency, no central bank printing money, and no room for competing digital currencies to interfere. The Central Bank of Ecuador (BCE) sees crypto as a threat to that stability. If people start using Bitcoin or Ethereum as a store of value or payment method, it could pull dollars out of the formal banking system. Thatâs dangerous in a country where 42% of adults still donât have a bank account and rely on cash or remittances.
The legal basis comes from Article 94 of the Monetary Code, which says only the US dollar is legal tender. Then in January 2022, the JPRM (Monetary and Financial Policy Council) issued Resolution 001-22, explicitly banning financial institutions from processing crypto transactions. They reinforced it in March 2023 with Resolution 002-23. So while itâs not illegal to own crypto, itâs illegal for banks to help you move it.
Who Enforces the Ban, and How?
The Superintendency of Banks (SB) is the enforcer. They maintain a public list of 47 crypto-related businesses that banks are forbidden to work with. These include major exchanges like Binance, OKX, and Mercado Bitcoin. Banks are required to use a Transaction Monitoring System (TMS) Version 3.1, which flags 47 specific crypto-related transaction patterns. If you send $200 or more to any of those flagged addresses, your bank will block it-and may freeze your account for 3 to 14 days.
There are real consequences. In 2024 alone, 12 financial institutions were fined a total of $1.2 million for letting crypto transactions slip through. One user on Reddit reported their Banco Pichincha account froze after sending $250 to a P2P seller. It took two weeks to get it back, with no explanation beyond âregulatory compliance.â
What Can You Actually Do With Crypto in Ecuador?
You can still buy, sell, and hold crypto-but only outside the banking system. That means relying on peer-to-peer (P2P) platforms, cash trades, or offshore services. Most users turn to Telegram-based OTC desks, where buyers and sellers negotiate directly. According to the IMF, 63% of all crypto transactions in Ecuador happen this way. Average transaction size? $1,250.
Stablecoins like USDT are the go-to workaround. People buy USDT on P2P platforms, then try to convert it back to USD via bank transfer. Sometimes it works-if the transaction looks like a regular money transfer. But itâs risky. In Q2 2025, 147 users reported $382,000 in frozen funds because banks caught the trail. Even if the money arrives, it can disappear later due to chargebacks.
Other workarounds include:
- Using gift cards bought with crypto and sold for cash
- Buying dollar-denominated prepaid cards from non-bank providers
- Using cross-border services like Wise, which donât explicitly block crypto-derived funds
All of these come with fees-averaging 4.8%, compared to 1.2% in countries where crypto is legal in banking. The average Ecuadorian crypto user spends nearly 9 hours a month just managing these workarounds. In Colombia, where crypto is more accepted, users spend just over 2 hours.
What About Mining and Businesses?
Ecuador has quietly become a mining hotspot. In 2023, there were about 100 mining operations. By mid-2025, that number jumped to 1,023. Why? Cheap electricity. But hereâs the catch: none of these operations have bank accounts. They all use third-party payment processors, paying 3-5% extra just to get paid.
For startups, the rules are even tighter. To operate legally as a FinTech company dealing with crypto, you must register as a sociedad anĂłnima with at least $200,000 in capital. You also need to verify every customer against Ecuadorâs National Registry of Persons (RENAP)-a process that takes 17 business days on average. Only three law firms in the entire country specialize in crypto legal work. If you run into trouble, the Financial Ombudsmanâs Office takes 63 days on average to respond.
Is There Any Hope for Change?
Yes-but slowly. In May 2025, Congressman Shirley Rivera introduced Bill 6538. It proposes a licensing system for crypto exchanges: minimum $500,000 capital, proof-of-reserves audits, and real-time monitoring linked to the Financial Analysis Unit (UAF). If passed, it could bring crypto into the light. But experts say itâll take at least 18 months, maybe longer. The bill is stuck in three congressional committees.
The BCE is also testing a Central Bank Digital Currency (CBDC), with pilot programs scheduled for late 2025. If it launches, it could either replace private crypto-or coexist with it. So far, the bank has said nothing about whether users will be allowed to hold both.
Meanwhile, pressure is growing. The World Bank estimates Ecuador loses $18 million a year in potential savings from blockchain-based remittances. Traditional remittance fees hover at 6.5%. Crypto could slash that to under 1%. But without banking access, most users canât take advantage.
How Does Ecuador Compare to the Rest of Latin America?
Ecuador is an outlier. Brazil and Argentina have clear licensing rules. Mexico allows crypto as a payment method. Even Peru lets banks offer crypto custody services. Ecuadorâs crypto market is estimated at just $185 million-1.1% of Latin Americaâs total. Venture capital? Only $12.7 million flowed into Ecuadorian blockchain startups in 2024. In Brazil, it was $210 million.
The difference isnât just policy-itâs perception. In Ecuador, crypto is seen as a threat to dollarization. Elsewhere, itâs seen as a tool for financial inclusion. And with 42% of adults unbanked, thatâs a big problem.
What Should You Do If You Use Crypto in Ecuador?
First, donât trust banks. Assume any transfer to an exchange will be blocked. Use P2P platforms like LocalBitcoins or Paxful, and stick to well-known sellers with verified histories.
Use USDT as your bridge currency. Convert crypto to USDT first, then try to cash out via cash deposit or prepaid card. Avoid large transfers-keep them under $200 to reduce the chance of triggering a flag.
Keep records. If your account freezes, youâll need proof you didnât violate any laws. The law doesnât ban holding crypto, only bank involvement.
And donât assume the rules wonât change. Bill 6538 might pass. The CBDC might launch. The BCE might crack down harder. Stay informed. Follow the Superintendency of Banksâ website. Check for new JPRM resolutions. And be ready to adapt.
The system is broken, but itâs not impossible. Thousands of Ecuadorians are still using crypto-just not the way theyâd like. Until the banks are allowed back in, youâre stuck in the gray zone. But youâre not alone.
Is it illegal to own cryptocurrency in Ecuador?
No, owning cryptocurrency is not illegal in Ecuador. The ban only applies to banks and financial institutions-they cannot process, hold, or facilitate crypto transactions. Individuals can buy, sell, and hold crypto privately using peer-to-peer platforms, cash trades, or offshore exchanges.
Can I use Binance or Coinbase in Ecuador?
You can create accounts on Binance or Coinbase, but you cannot link them to your Ecuadorian bank account. Most users rely on Binanceâs P2P platform to buy and sell crypto using cash or other non-bank methods. Direct bank transfers to these platforms are blocked.
What happens if my bank account gets frozen for crypto activity?
If your bank freezes your account for crypto-related transactions, youâll typically be locked out for 3 to 14 days. Banks rarely give clear reasons, but itâs usually because a transaction matched a flagged pattern in their monitoring system. You may need to visit the branch in person, provide documentation, and sign a statement confirming you didnât violate any laws. Thereâs no guaranteed timeline for resolution.
Are crypto gains taxed in Ecuador?
Yes. The Internal Revenue Service (SRI) taxes cryptocurrency gains at progressive rates: up to 35% for individuals and 25% for corporations on Ecuador-source income. Youâre legally required to report crypto profits, even if you never used a bank. Failure to report can result in penalties, though enforcement is still inconsistent.
Can I mine cryptocurrency in Ecuador and get paid in USD?
Yes, mining is allowed and growing, but you canât receive payments through a bank. Miners use third-party payment processors, which charge 3-5% fees. Some use P2P platforms to convert mined crypto to cash or stablecoins. There are no legal protections for miners, and they operate entirely outside the formal financial system.
Will Ecuador ever allow crypto in banks again?
Itâs possible, but not soon. Bill 6538, introduced in May 2025, proposes a licensing system for exchanges, but itâs still in committee. A Central Bank Digital Currency (CBDC) is also being tested, which could either replace or restrict private crypto. Experts predict any change wonât happen before 2027. Until then, the ban remains firm.
Whatâs Next for Crypto in Ecuador?
The future hinges on two things: whether Bill 6538 passes and how the CBDC turns out. If the government creates a digital dollar that people can use easily, many might abandon private crypto altogether. But if the CBDC is too restrictive or hard to access, the underground crypto economy will keep growing.
For now, Ecuadorians who want crypto have to be creative, patient, and cautious. The system isnât designed for them-but theyâre making it work anyway. Thatâs the real story here: not a ban, but a workaround.
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