Uruguay's Financial Regulator Clarifies The Situation Related To The Sale Of Real Estate For Cryptocurrency

According to El Observador, the Montevideo law firm has approached the General Tax Directorate (DGI), an agency subordinate to the country's Ministry of Economy and Finance, to clarify the situation related to the sale of real estate for cryptocurrencies. The media outlet also notes that a number of specialized portals have appeared in the Latin American country, advertising real estate for sale in exchange for crypto assets.

The DGI stated that any such “sale” is not a traditional “real estate sale”. It will be classified as an "asset exchange" – "intangible assets" (cryptocurrency) are exchanged for an "asset" of tangible real estate. As noted by the DGI, for a "sale" to take place, it is necessary for money to change hands. And since Uruguay's legal system does not recognize that digital tokens have monetary value, cryptocurrency cannot be used in legitimate “sales”. Regardless, the exchange is taxable. "Exchanges" of cryptocurrency property must be registered with the Land Registry and taxed accordingly.

The country's central bank recently said it was preparing to issue a cryptocurrency statement in which it is expected to outline its policy on tokens and how they should be regulated. The statement is due to be released in the coming weeks.

Image: CRYPTOS TV