The Executive Branch of Uruguay sent a bill to the Legislative Branch for approval.
- Uruguayan government submits crypto bill to Parliament
- They want to regulate cryptocurrencies in the country
- Gives Uruguay’s Central Bank powers over cryptocurrencies
Uruguay’s executive branch submitted a bill to the country’s parliament with the aim of clarifying how activities related to cryptocurrency cryptocurrencies are digital currencies that use cryptographic technologies to secure their operation. assets will be regulated. If passed, it will be the first bill within the country to address a place where cryptocurrency can be sent to and from, in the form of a string of letters and numbers. the gray area in which cryptocurrency exchanges and virtual asset service providers operate in the South American nation.
The bill amends the charter of the Central Bank of Uruguay and introduces the Superintendency of Financial Services, an organization that is part of the central bank, as the primary overseer of the activities of virtual asset service providers . In this sense, the document establishes that custody custody is a financial institution's legal capacity to keep and preserve financial assets for its clients to avoid asset theft or loss. providers, companies that facilitate the purchase and exchange businesses that allow customers to trade cryptocurrencies for fiat money or other cryptocurrencies. of virtual assets and third parties that provide financial services related to the offer or sale of a virtual asset will be considered part of this class.
“Issuer of Virtual Assets”.
However, as media outlets such as Bitcoin.com y The Observer the bill introduces another type of organization as ” issuer of virtual assets”. The definition is that of a platform a place to buy, sell and store cryptocurrency that issues any type of virtual asset included within the regulatory perimeter or applies for admission of regulated virtual assets to a virtual asset trading platform.
Like other bills in the area that portray institutions as the primary watchdogs of cryptocurrencies, the proposed bill places all supervision related to these tasks in the hands of the country’s central bank. .
The document makes it clear:
With the proposed amendments, both previously regulated regulation is when something is controlled by a specific set of rules. entities and new entities operating with virtual assets will be subject to the supervisory and control powers of the Central Bank of Uruguay.
The text also refers to virtual asset securities, defining them as the digital digital technologies are these electronic tools that have the ability to generate, store or even process data. counterparts of familiar financial securities.
There have been previous attempts to legalize cryptocurrencies as a payment method in the country. A cryptocurrency bill introduced by senator Juan Sartori last year was intended to achieve this goal . Also, in August, the Central Bank of Uruguay summoned to appear at the a Binance for its offering of cryptocurrency-based financial products geared towards savings.
According to the document presented by the agency, the Central Bank understands that, although they function as a method of exchange, Bitcoin the biggest and most popular cryptocurrency in the world. It is a decentralized digital currency that enables users to make trustless peer-to-peer transactions. y Ethereum a decentralized open-source blockchain with smart contracts functionality. are used in a similar way to bartering, it counts Iproup.
The media also says that although it does not pose a strict legislation for use as a method of payment or exchange, it does as an investment asset. In that case, the regulation would not be on the “virtual asset exchange”, but on the instrument in question, detailed from the entity.
It is worth noting that in August 2021 already a Senator had introduced a crypto bill, This project aimed to promote investment in the crypto sector, as well as to protect the users of such assets in the country. In addition, in May of this year, the country joined the global campaign against crypto and crypto-financial scams fakecoins.
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