Uruguay has enacted a crypto law, positioning the country as a regional leader in crypto regulation.
The law, proposed over two years ago, acknowledges cryptocurrency as virtual assets in Uruguay and designates the Central Bank of Uruguay as the regulator and administrator of companies that wish to provide cryptocurrency services.
Due to the law, Uruguay is at the forefront of Latin American countries that have already integrated cryptocurrency into their regulatory frameworks.
After more than two years of debate, Uruguay has implemented a cryptocurrency law.
The 20.345 Law, a bill that regulates the use of Bitcoin and cryptocurrency in the country, was recently ratified by President Luis Lacalle Pou.
The law grants Uruguay a unique position, providing companies that wish to offer services related to cryptocurrency with a clear understanding of the matter.
The Central Bank of Uruguay will be responsible for supervising virtual asset service providers (VASPs) and issuing permits to enable these organizations to operate.
These permits will be issued with consideration for “legality, opportunity, and convenience.” Similarly, the Superintendence of Financial Services (SSF) will be required to identify exchanges, wallets, and even miners classified as VASP.
The law amends the current regulation on money laundering and terrorism financing control to include virtual assets as a subject of control and supervision for current enforcement organizations.
Additionally, it amends the securities law to incorporate the concept of decentralized securities, which are “issued, stored, transferred, and traded electronically through distributed ledger technologies.”
The Central Bank of Uruguay’s 2021 framework, which was the result of the institution’s investigation into the cryptocurrency subject, served as the inspiration for the current law.
After being introduced in September, the lower chamber of Congress approved it in December 2022. Nevertheless, it was required to undergo a series of modifications to be passed and signed into law.
Uruguay has joined the ranks of a handful of countries that have integrated cryptocurrency and cryptocurrency service providers into their regulatory framework, following in the footsteps of Venezuela, Brazil, Argentina, and El Salvador, which have all approved this initiative. Nevertheless, this final one is the only one recognizing bitcoin as lawful tender.
