Central Bank of Uruguay outlines roadmap for regulating crypto assets – bitcoin news

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The Central Bank of Uruguay issued a statement outlining a roadmap for the regulation of cryptocurrency assets in the near future. The institution said it has created a group to examine the best possible way to regulate these assets, given the realities of the crypto industry. In addition, certain changes to the laws in force could be made to prepare for the next regulation towards the end of the year.

Central Bank of Uruguay hints at crypto regulation

The Central Bank of Uruguay has issued a statement on virtual assets in which it roughly describes the roadmap that the institution will follow in the process of regulating cryptocurrencies. The bank has already created a study group to examine how the crypto world works, and with that in mind, it created a conceptual idea of ​​how this market might soon be regulated.

The institution also announced that during the fourth quarter of 2021, it will be involved in discussions with industry players in the country with the aim of improving knowledge on how these companies operate. The statement highlights:

In the last quarter of the year, a dialogue will be fostered with players in the sector and relations with other regulators and international organizations … These exchanges will help to perfect the conceptual framework with a view to achieving a regulatory approach that contributes to the aforementioned purposes.

With an already clear vision for the cryptocurrency industry, the Central Bank of Uruguay will propose changes to current laws before the end of this year, to better accommodate the introduction of new crypto-focused regulations. currencies in the future.

Recommendations and advice on cryptocurrency

The bank also offered some recommendations to cryptocurrency users, clarifying that these assets are not considered legal tender in the country like the Uruguayan peso, which is recognized and supported by the institution. With this distinction in view, the establishment of a regulatory framework for crypto could be very different from that approved in El Salvador, where bitcoin has been declared to be legal tender.

The central bank clarified that cryptocurrency-related activities are not regulated by any institution in the country. As a result, none of the protections that apply to regular investors could protect citizens involved in cryptocurrency trading or investments.

The bank advises people interested in crypto assets to:

Carry out a comprehensive assessment of the risks involved in using these instruments and take the necessary precautions to mitigate them, bearing in mind that high returns are usually associated with high risks.

What do you think of the Central Bank of Uruguay’s position on digital assets? Tell us in the comments section below.

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