Uruguayan government introduces bill for cryptocurrency-oriented regulations

The Uruguayan government has unveiled legislation to the government for speeding up cryptocurrency-based regulations in the country and for development of central banks as a regulatory authority, as reported by Cointelegraph.

According to Cointelegraph, introduced on September 5, the bill aims to clarify the country’s regulatory scenario for cryptocurrency assets, stating that companies which give services related to digital assets and initial coin offerings (ICOs) are under the administration of the Superintendency of Financial Services (SSF), a central bank entity. Digital assets-oriented platforms such as cryptocurrency exchanges, custody services and any financial services are required to follow anti-money laundering regulations and techniques. 

“If the activity carried out with these instruments involves the exercise of financial intermediation or financial activity, it will be subject to the regulation and control of the Central Bank of Uruguay,” the document stated. Additionally, the document gave definitions to the digital assets of stablecoins, governance tokens, tradable assets and debt tokens. 

On the basis of information by Cointelegraph, previously, Uruguayan senator Juan Sartori introduced a draft bill to regulate cryptocurrency and enable businesses with the acceptance of digital assets, with the aim to create safe business protocols related to production and commercialisation of virtual currencies. 

Moreover, Cointelegraph noted that this development is expected to be a part of regulations being pursued by Latin America-based governments or regulators. Reportedly, Brazil’s Securities and Exchange Commission is looking to change its legal framework for recognition of tokens as digital assets or securities. In August, Paraguay’s president vetoed a bill on recognition of cryptocurrency mining as an industrial activity, with the argument that mining’s high energy consumption could be a barrier in the growth of a sustainable national industry.

Going by Cointelegraph’s website, founded in 2013, it is a digital media resource covering news on blockchain technology, cryptocurrency assets, and emerging financial technology (fintech) trends. 

(With insights from Cointelegraph)

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