The use of cryptocurrency in any business transactions is prohibited under Maldivian law, the Maldives Monetary Authority (MMA) said.
The statement from the country’s central bank came after S Hotels & Resorts began accepting cryptocurrencies at SAii Lagoon and Hard Rock Hotel in CROSSROADS Maldives.
It is unclear how the MMA would handle the matter, but the authority has stated that any type of cryptocurrency will not be permitted in the Maldives.
The central bank issued a similar announcement in 2018, prohibiting the use of cryptocurrencies in the nation.
Although digital currencies have gained popularity throughout the world, most countries have not formally authorised the use of cryptocurrencies in business transactions. The usage of cryptocurrencies has also been outlawed by the Chinese government.
S Hotels and Resorts was one of the first hotel chains in the world to accept cryptocurrency as legal tender. In an earlier statement, the company stated that the option will be critical in modernising the tourism sector and servicing new generations in the sector.
The company originally stated that the two resorts will take USD Coin (USDC) and Tether tokens (USDT). But the MMA announced a cryptocurrency ban, despite the company’s plans to provide more digital payment methods in the future.