A new regulatory bill gives Uruguay’s central bank control over the country’s crypto industry

The government of Uruguay has introduced legislation to the parliament, accelerating the regulation of the crypto space in the country and establishing the central bank as a regulatory authority.

Introduced on September 5, the bill seeks to clarify the country’s regulatory framework for cryptocurrency assets, ensuring that all companies offering digital asset-related services, including Initial Coin Offerings (ICOs), are regulated by the Financial Services Authority (SSF). , part of the central bank. Cryptocurrency exchanges, custody services and any financial services related to these digital assets must comply with anti-counterfeiting regulations and best practices.

The document also describes four types of digital assets: stablecoins, governance tokens, tradable assets and debt tokens:

“If the activity carried out by these instruments involves a financial intermediary or financial activity, it will be under the supervision and control of the Central Bank of Uruguay.”

Last year, Uruguayan Senator Juan Sartori introduced a bill to regulate cryptocurrency and allow businesses to accept digital payments, “to establish legal, legal and safe use in businesses related to the production and trade of virtual currencies.”

This development is part of a wave of legislation being carried out by governments or legislatures in Latin America. Brazil’s Securities and Exchange Commission is reportedly moving to change the legal framework to classify tokens as digital assets or securities. In August, Paraguay’s president vetoed a bill to recognize cryptocurrency mining as an industrial activity, arguing that mining’s high electricity consumption could hinder the development of a sustainable national industry.