thecoinrise.com
The Uruguayan government has released a new set of regulations that now puts the nation’s peak financial institution, the Central Bank of Uruguay (BCU) in charge of its crypto ecosystem.
A bill that was introduced on the 5th of September tried to explain the country’s stance on the issues concerning digital assets. Also, it put the legislative framework in place to accelerate the quick adoption of cryptocurrencies.
The bill states that all initial coin offerings (ICO) and virtual assets service providers (“entities that regularly and professionally provide one or more virtual assets service to third parties”), and other firms that offer services linked with digital assets are all answerable to the Superintendency of Financial Services (SSF), a central bank entity.
Together, all these entities including cryptocurrency exchanges and custody services must stick to the standard anti-money laundering practices laid out. They must also try to work within the best practices while offering industry standard services.
Uruguay Bill to Advance Crypto Industry
According to the bill, four digital asset classes were defined to include stablecoins, governance tokens, tradable assets, and debt tokens.
A statement published in the bill, any assets categorized under these classes are under the jurisdiction of the central bank. Per the statement, “If the activity carried out with these instruments involves the exercise of financial intermediation or financial activity, it will be subject to the regulation and control of the Central Bank of Uruguay.”
While the bill has gone through the Uruguayan executives, it is still compulsory to get approved by the Chamber of Deputies of Uruguay and its Senate before it finally becomes law.
“With the proposed amendments, both the previously regulated subjects and the new incorporated entities that operate with virtual assets will be subject to the supervisory and control powers of the Central Bank of Uruguay,” the bill stated.
Before now, the Central Bank of Uruguay had been concerned with cheating a standardized framework for cryptocurrencies in the country.
It even went as far as putting up a team that makes decisions about the course of actions to take in regard to digital assets. In its advancement of the crypto ecosystem, the country stands as one of the South American nations that have installed a Bitcoin (BTC) ATM. Notably, it is the 11th South American country to jump on this tide.