Uruguayan regulator suggests crypto-real estate exchanges are possible

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Source: Adobe / Palacio SalvoSpectral-Design

A Uruguayan financial regulator issued an ambivalent statement in response to a question about how he views property sales for crypto – hinting that under the right circumstances this could allow such measures to move forward .

Per El Observador, Montevideo Notary Pérez del Castillo & Asociados contacted the General Tax Directorate (known locally as DGI), an agency that reports to the country’s Ministry of Economy and Finance, for advice On the question.

The outlet noted that a number of “specialist portals” that advertise real estate for sale in exchange for crypto-assets have emerged in the Latin American nation. He added that a growing number of property sellers are also saying they will accept crypto payments.

However, the notary’s request revealed a somewhat mixed response from the DGI on the matter. The agency said such a “sale” would in fact not be a traditional “real estate sale” at all. Instead, it would be classified as an “asset swap” – with “intangible assets” (crypto) being exchanged for a tangible real estate “asset”.

For a “sale” to take place, the DGI noted, the money must change hands. And because the Uruguayan legal system does not recognize digital tokens as having monetary value, crypto cannot be used in legal “sales”.

However, the DGI’s response hinted that crypto may indeed have some form of legal status, albeit that of an “intangible personal good”. This would allow it to be used as a medium of exchange, a fact which, according to mainstream economic theory, means that it fulfills at least one of the characteristics of money.

At no point did he overstate that real estate-to-crypto “swaps” should be discouraged.

Either way, the agency added, an exchange is still a taxable event – and even “exchanges” of encrypted goods must be registered with the land registry office and taxed accordingly, presumably depending on the. value in fiat peso of the crypto-asset at the time of sale.

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

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Learn more:

– Uruguayan Senator Sartori unveils crypto adoption and regulation bill – Argentina MP calls for answers from mining government as interest in crypto real estate increases

– Spanish real estate experts: Interest in buying houses powered by Bitcoin increases – Spain’s first tokenized property sells for ETH to investors in 3 countries

– Taiwanese buy $ 15million NYC condo with Bitcoin – Would you buy this townhouse for $ 30million – or 45million in BTC?

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