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Uruguay enacts cryptocurrency regulation

Uruguay enacts cryptocurrency regulation

GrafaGrafa2024/10/03 06:40
By:Mahathir Bayena

Uruguay has passed a landmark cryptocurrency law after more than two years of debate, placing the country at the forefront of Latin American nations in the crypto regulatory space.

President Luis Lacalle Pou signed the law, which officially recognizes cryptocurrencies as virtual assets and establishes the Central Bank of Uruguay as the primary regulator for companies seeking to offer crypto services.

The law grants the Central Bank authority to oversee Virtual Asset Service Providers (VASPs) and issue permits for their operations based on legality, opportunity, and convenience.

Additionally, the Superintendence of Financial Services (SSF) will be responsible for identifying exchanges, wallets, and even cryptocurrency miners that qualify as VASPs.

One of the most significant aspects of the law is its modification of current regulations on money laundering and terrorism financing, now including virtual assets under the purview of regulatory oversight.

The law also introduces decentralized securities, which are managed and traded using distributed ledger technologies.

This legislation is based on a framework proposed by the Central Bank of Uruguay in 2021 following extensive research into cryptocurrency.

It was initially approved by Congress in December 2022, after several modifications, before becoming law.

By passing this law, Uruguay joins other Latin American nations like Venezuela, Brazil, Argentina, and El Salvador in creating regulatory frameworks for crypto assets.

However, El Salvador remains the only country to have declared Bitcoin (CRYPTO:BTC) legal tender.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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