Monday, November 28, 2022
 

Uruguay Introduces New Crypto Bill, Grants Central Bank Power

  • Uruguayan regulators present a new bill that seeks to regulate cryptocurrencies.
  • The bill makes the nation’s central bank the primary overseer of crypto-related activities.
  • It also introduces a new class of entity called “virtual asset issuer.”

Uruguayan regulators have introduced a bill to the parliament that would clarify the legal status of cryptocurrency assets and the activities that involve them. The bill aims to make it clear how cryptocurrency will be regulated in Uruguay by granting the Central Bank of Uruguay authority over cryptocurrencies.

According to the official announcement, the proposed bill would amend the Central Bank of Uruguay’s organic charter and establish the Central Bank’s Superintendence of Financial Services as the primary regulator of virtual asset service providers.

As such, the document defines the category to include custody providers, companies that enable the acquisition and exchange of virtual assets, and third parties that lend financial services associated with the offering or sale of a virtual asset.

In addition, the bill introduces a new class of entity called “virtual asset issuer,” which is defined as a platform that issues any virtual asset operating inside the regulatory perimeter or requests admission of regulated virtual assets on a virtual asset trading platform.

Simply said, the bill puts all control over matters related to virtual assets in the nation in the hands of the central bank.

The document notes:

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.

Furthermore, there is also mention of virtual asset securities in the document, which are described as “digital counterparts” to traditional financial instruments.

If passed, this would be the first bill in the country to address the regulatory void in which cryptocurrency exchanges and virtual asset service providers now function. However, this is not the first regulation related to cryptocurrencies.

Last year, Senator Juan Sartori presented a bill that sought to provide legal, financial, and fiscal security in the business derived from the production and commercialization of cryptocurrencies. The bill stated that any individual might send or receive cryptocurrencies in legal tender from and to their own bank accounts or those of licensed platforms.

  • Uruguayan regulators present a new bill that seeks to regulate cryptocurrencies.
  • The bill makes the nation’s central bank the primary overseer of crypto-related activities.
  • It also introduces a new class of entity called “virtual asset issuer.”

Uruguayan regulators have introduced a bill to the parliament that would clarify the legal status of cryptocurrency assets and the activities that involve them. The bill aims to make it clear how cryptocurrency will be regulated in Uruguay by granting the Central Bank of Uruguay authority over cryptocurrencies.

According to the official announcement, the proposed bill would amend the Central Bank of Uruguay’s organic charter and establish the Central Bank’s Superintendence of Financial Services as the primary regulator of virtual asset service providers.

As such, the document defines the category to include custody providers, companies that enable the acquisition and exchange of virtual assets, and third parties that lend financial services associated with the offering or sale of a virtual asset.

In addition, the bill introduces a new class of entity called “virtual asset issuer,” which is defined as a platform that issues any virtual asset operating inside the regulatory perimeter or requests admission of regulated virtual assets on a virtual asset trading platform.

Simply said, the bill puts all control over matters related to virtual assets in the nation in the hands of the central bank.

The document notes:

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.

Furthermore, there is also mention of virtual asset securities in the document, which are described as “digital counterparts” to traditional financial instruments.

If passed, this would be the first bill in the country to address the regulatory void in which cryptocurrency exchanges and virtual asset service providers now function. However, this is not the first regulation related to cryptocurrencies.

Last year, Senator Juan Sartori presented a bill that sought to provide legal, financial, and fiscal security in the business derived from the production and commercialization of cryptocurrencies. The bill stated that any individual might send or receive cryptocurrencies in legal tender from and to their own bank accounts or those of licensed platforms.

 

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