Uruguay has proposed a crypto bill, which will bring significant changes to the way virtual assets are regulated in the Latin American country.
If all goes to plan, the Central Bank of Uruguay (BCU) will oversee and regulate virtual assets, the local daily El Observador reported. Uruguay’s move is timely as it comes at a time when global crypto regulations are being aggressively considered.
The project has its eyes set on reworking the BCU’s charter, especially to bring “Virtual Assets” under the supervision of the Finance Services Superintendence (FSS), a department of the BCU.
The executive branch has proposed the bill to the Uruguayan parliament— suggesting a new business category for services concerning virtual assets. The bill stipulates that service providers dealing in virtual assets will adhere to the FSS guidelines.
Bill has a wide scope
It is the categorization that is important here. Uruguay recognizes the VA (virtual asset) service providers as entities. As for the services, anything from having the custody of assets to exchanging and swapping is to be considered within the scope of the newly proposed bill.
To be introduced as a law, the bill would need a thumbs up from the Chamber of Deputies and even the Uruguayan senate, with or without modifications. In short, complete congressional approval will be required for it to become law.
Reading the fine print
Going by the text, it is clear that the bill proposes to amend the “securities market law” as well. If everything falls in place, crypto assets will be classified as securities. Once that is done, only registered entities can issue the same.
However, this isn’t the first time a crypto-specific bill has been introduced in Uruguay. In August 2021, Uruguayan Senator Juan Sartori proposed that cryptos should be accepted as contract payments, but the bill did not pass muster with the country’s legislature.