Central Bank of Uruguay plans to regulate cryptocurrencies in the country

The Central Bank of Uruguay (BCU) communicated this week that, in view of the recent increase in the use of cryptocurrencies in that country, they are evaluating market regulation. This, with the support of a work team dedicated to the study of the instruments and operations with these digital assets. To achieve this goal, the state is willing to amend current laws.

So, you are doing a detailed analysis of the “operability”With digital assets. They believe that by the end of this year they could have a proposal to modify the current legal provisions with a clear framework that allows progress in regulations for these activities. This will help to better adapt to the introduction of new cryptocurrency-oriented rules in the future. As detailed in the statement.

“In due course, details will be provided on the roadmap of the activities to be developed during the year 2022 with the aim of advancing the institutional definitions on this issue”. They indicated.

The BCU specified that, due to their characteristics, some digital assets “They favor the anonymity and reversibility of transactions” which can imply the exposure of the operators to important risks. As is the case with money laundering, fraud or terrorist financing.

In a statement published on its official website, the issuing entity indicated that throughout 2021 an internal working group has been dedicated to studying the ecosystem and, as a result, they created a “conceptual framework” focused on business and other operations. that are run with cryptocurrencies.

In said statement, the BCU stated that, although “These instruments may have the potential to contribute to the development and efficiency of the financial and payments system ”, they may also end up generating“ new risks or exacerbating existing ones ”, supposedly due to the“ absence of a specific regulation to mitigate them ”.

In the first instance, the BCU indicated that digital assets “they do not constitute legal tender ”in Uruguay, because“ they were not issued or have the backing of any central bank ”, making it clear that the Uruguayan peso is the only one to have this denomination in that country. In this sense, The central entity clarified that Uruguayan financial institutions and businesses are not obliged to process transactions with cryptocurrencies and other virtual assets, or to accept them as a means of payment.

Some recommendations

However, the Central Bank of Uruguay, recommended that users carry out an evaluation that analyzes the risks involved in operating with this type of assets. Suggesting that high returns are generally associated with high risks.

It is considered that all those actions that the banks are taking are aligned with the BCU’s policy, in order to provide more information and recommendations “to those who are currently operating with virtual assets, as well as to all users of the financial system ”.

The issue of regulation is not new in Uruguay. In August, it became known that a bill to regulate bitcoin (BTC) and the other cryptocurrencies established that the State was going to issue up to four types of licenses for this industry.

Regional interest in cryptocurrencies

The announcement by the Central Bank of Uruguay comes at a time when the region begins to take digital currencies much more seriously, seeking to streamline regulatory procedures to effectively address the commercial and operational considerations of said assets.

For analysts and enthusiasts, the interest came after the actions promoted by the government of The Savior, which made Bitcoin an official currency as of September 7.

Now, as part of the aforementioned statement, the Central Bank of Uruguay also addressed cryptocurrency enthusiasts, reminding them that digital assets are not legal tender within the country’s jurisdiction. The BCU also clarified that activities related to cryptocurrencies are not regulated by any body in the country. As a consequence, the protections that apply to ordinary investors do not apply to citizens who engage in or invest in cryptocurrency trading.

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