Central Bank of Uruguay Describes Roadmap for Crypto Asset Regulation –

The Central Bank of Uruguay has released a statement outlining a roadmap for regulating cryptocurrency assets in the near future. The institution said it has formed a group to study the best possible way to regulate these assets, taking into account the realities of the crypto industry. In addition, some changes could be made to the current laws in preparation for the upcoming regulation towards the end of the year.

Central Bank of Uruguay Notes on Crypto Regulation

The Central Bank of Uruguay has issued a statement on virtual assets in which it broadly describes the roadmap that the institution will follow in regulating cryptocurrencies. The bank has already set up a study group to study the functioning of the crypto world and, taking this into account, has developed a conceptual idea of ​​how this market could be regulated in the near future.

The institution also announced that it will hold discussions with industry players in the country in the fourth quarter of 2021 to perfect knowledge of how these companies operate. The statement emphasizes:

In the last quarter of the year, dialogue with industry players and relationships with other regulatory authorities and international organizations will be promoted... This exchange will help perfect the conceptual framework in order to achieve a regulatory approach that contributes to the above purposes.

With an already clear view of cryptocurrency business, the Central Bank of Uruguay will propose changes to current laws later this year to better accommodate the introduction of new crypto-focused regulations in the future.

Cryptocurrency recommendations and advice

The bank also proposed some recommendations for cryptocurrency users, saying that these assets are not considered legal tender in the country, like the Uruguayan peso, which is recognized and supported by the institution. Given this distinction, creating a regulatory framework for crypto could be very different than that approved in El Salvador, where Bitcoin was declared legal tender.

The central bank clarified that cryptocurrency-related activities are not regulated by any institution in the country. As a result, none of the protections that apply to regular investors could protect citizens involved in trading or investing in cryptocurrencies.

The bank advises people interested in crypto assets to:

Conduct a comprehensive assessment of the risks involved in operating these instruments and take the necessary precautions to mitigate them, taking into account that high returns usually come with high risks.

What do you think of the Central Bank of Uruguay’s stance on digital assets? Tell us in the comments section below.

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