Uruguay Introduces Cryptocurrency Law in Parliament – With the aim of defining how cryptocurrency asset-related activities would be regulated, Uruguay’s executive branch has proposed a bill project to the country’s parliament. If passed, this will be the first legislation to deal with the gray area that cryptocurrency exchanges and other service providers for virtual assets currently inhabit.
The proposed bill modifies the Central Bank of Uruguay’s organic charter and establishes the Superintendence of Financial Services as the primary regulator of the operations of virtual asset service providers. This organization is a part of the central bank.
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In this regard, the document establishes that third parties who lend financial services related to the offer or sale of a virtual asset will be regarded as part of this class, along with custody providers, businesses that facilitate the purchase and exchange of virtual assets, and companies that facilitate the lending of virtual asset custody services.
But the measure also creates a new kind of organization called “virtual asset issuer,” which is defined as a platform that issues any kind of virtual asset that is under the scope of regulation or demands admission of regulated virtual assets on a virtual asset trading platform.
The proposed measure places full responsibility for oversight of these activities with the country’s central bank, similar to other legal proposals in the area that establish institutions as the primary crypto watchdogs. According to the document: “With the proposed modifications, both the previously regulated subjects and the newly incorporated entities that operate with virtual assets will be subject to the supervision and control powers of the Central Bank of Uruguay.”
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Uruguay Introduces Cryptocurrency Law in Parliament – Virtual asset securities, which are referred to as the digital counterparts of the already well-known financial securities, are also mentioned in the text.
The country has made prior attempts to legalize cryptocurrencies as a form of payment. This was the aim of a bitcoin law initiative that Senator Juan Sartori put out last year. Additionally, the Central Bank of Uruguay summoned Binance in August for providing financial products based on cryptocurrencies that are geared at saving money.
