Uruguay Becomes Latin America’s Crypto Regulation Leader After President Signs New Law
Date: 2024-10-02 Author: Gabriel Deangelo Categories: IN WORLD
According to reports from Ámbito Financiero and iProUP, Uruguay’s parliament and President Luis Lacalle Po signed a law that gives the country’s Central Bank the authority to oversee local crypto exchanges.
Uruguay Leads Crypto Regulation in Latin America?
Public figures say this makes Uruguay one of the few countries in Latin America that has a legal framework for cryptocurrencies. The Uruguayan Finance Association (CUF) described the new law as “an important guarantee for the financial system.” The association also noted that the move was a “significant achievement” for the industry’s development. The fintech industry in Uruguay is expected to grow 44% annually.
However, CUF also expressed caution, noting that the bank has not yet clarified how it will regulate the sector. “It is now critical to understand how the Central Bank will implement this regulation,” the association said.
More clarification is needed, say industry leaders
The association added that it is still waiting for more details on the “forms and timing” of how the bank will implement its requirements for cryptocurrency operators. “For the first time, Uruguay has established a basic framework that recognizes and regulates the existence of crypto assets,” CUF emphasized.
The central bank began studying the possibility of crypto regulation in late 2021 and presented a series of recommendations to the government. The government then made changes and submitted the draft law to parliament, which worked on it before voting last month.
A new oversight body
Similar regulatory measures have previously been implemented in Brazil, Venezuela, and Argentina. Meanwhile, El Salvador has gone further by granting Bitcoin (BTC) legal tender status.
Uruguay’s new law stipulates that the Central Bank will have “supervisory and regulatory” powers over crypto operators. It will also create a registry and issue licenses only to companies that meet a set of criteria. Crypto exchanges, crypto fund managers, and crypto wallet operators will also have to comply with anti-money laundering and counter-terrorism financing protocols.
In addition, the new law modifies existing securities laws by providing legal definitions for terms like “crypto asset.”
