A new cryptocurrency bill project has been introduced by the executive branch to the Uruguayan parliament. The bill seeks to clarify how crypto assets are regulated in the country, give Uruguay’s central bank competence over cryptocurrency assets, update its organic charter, and introduce the Superintendent of Financial Services as an organization to regulate virtual asset service providers.
Uruguay’s executive power proposed a crypto bill
The executive power in Uruguay has presented a draft bill to the country’s parliament with the clear purpose of how cryptocurrency property-related activities will be controlled. If passed, this would be the first bill in the country to address the gray area in which cryptocurrency exchanges and virtual asset service providers operate.
The proposed draft amends the Organic Charter of the Central Bank of Uruguay and introduces the Superintendent of Financial Services, part of the Central Bank Organization, as the main regulator of the activities of virtual asset service providers. In this regard, the document confirms that security providers, companies that facilitate the purchase and exchange of virtual assets and third parties that provide financial services related to the supply or sale of virtual assets will be part of this category.
However, the bill introduces another entity class as a “virtual asset issuer”, which is a platform that issues any type of virtual asset included in a regulatory perimeter or a platform that requests regulated virtual values on a virtual asset trading platform.
The central bank of Uruguay will be the main crypto watchdog.
Like other legislative projects in the area that introduce institutions as primary crypto regulators, the proposed bill would place all control over these operations in the hands of the country’s central bank. The document reads:
With the proposed reforms, both previously regulated subjects and newly merged entities will be under the control and supervision of the Central Bank of Uruguay.
The article refers to the so-called digital counterpart of previously known financial securities, virtual asset securities.
There have been previous attempts to legalize crypto as a payment method in the country. The cryptocurrency bill proposed by Senator Juan Sartori last year aims to achieve this goal. Also in August, Uruguay’s central bank called out Binance for offering savings-focused cryptocurrency-based financial products.
What do you think about the latest crypto bill proposed by the Uruguayan Parliament? Tell us in the comments section below.
Image credits: Shutterstock, Pixabay, Wiki Commons
DisclaimerThis article is for informational purposes only. It is not an offer or solicitation to buy or sell, or a recommendation or endorsement of any products, services or companies. Bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the Company nor the Author shall be liable, directly or indirectly, for any damages or losses arising out of the use of or reliance on any content, goods or services referred to in this paragraph.