Uruguayan Central Bank has been given the power to regulate the crypto sector, according to the recent regulatory bill.
A new cryptocurrency bill project was introduced by the executive power of the Parliament of Uruguay.
The bill seeks to clarify how crypto assets will be regulated in the country, giving the Central Bank of Uruguay authority over cryptocurrency assets, modifying its organic charter, and introducing the Superintendence of Financial Services as the entity in charge of overseeing virtual asset service providers.
Uruguayan Central Bank
The Uruguayan government recently submitted a bill to the parliament that was meant to enhance government oversight of cryptocurrencies in the country and establish the country’s central bank as the regulatory authority for handling them.
The September 5 bill aims to define the country’s regulatory guidelines for cryptocurrency assets, stating that all companies that provide digital asset-related services, including initial coin offerings (ICOs), fall under the supervision of the Excluded Supervisory Authority of the Superintendency of Financial Markets (SSF), a central bank entity.
Anti-Money Laundering Regulations
Cryptocurrency exchanges, custody businesses, and other financial services relating to digital assets should abide by Anti-Money Laundering regulations and best practices. Moreover, the document outlined four kinds of digital assets that are stablecoins, governance tokens, tradable assets, and debt tokens.
“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.”
Last year, Senator Juan Sartori launched a draft bill to legislate cryptocurrencies and permit businesses to accept digital payments, seeking to establish a legal and legitimate use of businesses in industries related to the production and commercialization of virtual currencies.
Legislators in Brazil and various countries have been pursuing this development as part of a wave of ongoing legislation or regulations related to digital assets and securities. The Securities and Exchange Commission of Brazil has been spearheading the effort to legally recognize tokens as assets or securities.
In August, Paraguay’s president vetoed a bill that would have recognized cryptocurrency mining as an industrial activity, arguing that mining’s high electricity consumption could hinder the development of a sustainable national industry.