Uruguay ‘a LATAM Crypto Regulation Leader’ After President Signs New Law

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Tim Alper

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Tim Alper

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Tim Alper is a British journalist and features writer who has worked at Cryptonews.com since 2018. He has written for media outlets such as the BBC, the Guardian, and Chosun Ilbo. He has also worked…

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Last updated:

October 1, 2024 23:00 EDT

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Uruguay’s crypto industry chiefs have welcomed a new law that will regulate the way crypto is traded in the nation.

Per the media outlets Ámbito Financiero and iProUP, the Uruguayan parliament and President Luis Lacalle Pou signed off a law that gives the nation’s Central Bank supervisory power over domestic crypto exchanges.

Uruguay Now a LATAM Crypto Leader?

Public figures have claimed this makes Uruguay “one of the few nations in the LATAM region” with a “legal framework” for crypto.

The Uruguayan Fintech Chamber (CUF) called the new law “an important framework of guarantees for the financial system.”

The CUF also said that the move was “a significant milestone” in the industry’s progress. The body estimates Uruguayan annual fintech industry growth at 44%.

However, there was also a cautionary note from the CUF, which suggested that the bank is yet to explain exactly how it will go about regulating the sector.

“It is now essential to understand how the Central Bank will implement this regulation.”

Uruguayan Fintech Chamber

We Need More Details, Claim Industry Chiefs

The chamber added that it was still waiting to hear more details about “the forms and estimated deadlines” the bank would impose on crypto operators.

“For the first time in Uruguay, a basic framework has been established that recognizes and legislates on the existence of cryptoassets.”

CUF

The bank first began exploring its crypto legislation options in late 2021. It then sent the government a series of recommendations.

The government modified these and handed the draft bill over to the parliament, which worked on the bill until a vote last month.

A New Supervisor

Similar regulatory measures have previously been rolled out in Brazil, Venezuela, and Argentina.

El Salvador, meanwhile, has gone a step further, granting Bitcoin (BTC) legal tender status.

The new Uruguayan law stipulates that the Central Bank has “supervisory and regulatory” powers over crypto providers.

It will also launch a registry system, and will only issue permits to firms that fulfill a range of criteria.

Crypto exchanges, crypto fund managers, and crypto wallet operators must also abide by anti-money laundering and counter-financing of terrorism protocols.

The new law also modifies existing securities law to provide legal definitions of terms such as “cryptoasset.”