After more than two years of discussions, Uruguay has adopted a law that enshrines the status of cryptocurrencies as virtual assets in the country. The new law establishes that the Central Bank of Uruguay will act as the main regulatory body for companies providing services related to cryptocurrencies. This decision places Uruguay at the forefront of Latin American countries that have integrated cryptocurrency into their legal and financial systems.
President Luis Lacalle Pou signed this important bill, known as Law 20.345, which regulates the circulation of Bitcoin and other cryptocurrencies in Uruguay. The main goal of the law is to provide transparent conditions for companies wishing to work with virtual assets. Now, all organizations providing such services will be required to obtain permits from the Central Bank of the country. These permits will be issued taking into account the principles of legality and economic feasibility.
The Central Bank of Uruguay has been given the authority to regulate the activities of virtual asset service providers (VASPs), including exchanges, digital wallets, and even cryptocurrency miners. New regulations have also been introduced to combat money laundering and terrorist financing, with a focus on controlling transactions with virtual assets. An important aspect of the legislation was the update of securities regulation, which for the first time introduces decentralized assets that can be issued and exchanged using distributed ledger technologies.
This bill was based on recommendations from the Central Bank of Uruguay, proposed back in 2021 after conducting research into cryptocurrencies. After the first approval by the lower house of parliament in December 2022, the law went through several stages of amendments before being finally approved and signed into law.
With the adoption of this law, Uruguay joined the ranks of Latin American countries such as Venezuela, Brazil, Argentina, and El Salvador that have already adopted legal norms regulating cryptocurrencies. However, only El Salvador has gone the next step by declaring Bitcoin an official means of payment.
This move by Uruguay will be an important step in the development of the cryptocurrency industry in the country, creating a legal framework for further growth and investment in this area.