Uruguay has finally passed a cryptocurrency law after more than two years of discussion. President Luis Lacalle Pou of Uruguay recently signed Law 20.345, a bill regulating the use of Bitcoin and cryptocurrency in the country.
Consequently, the new regulation puts Uruguay in a privileged position, which provides clarity for companies that want to offer crypto-related services and platforms,
Moreover, the Central Bank of Uruguay will supervise Virtual Asset Service Providers (VASPs). VASPs is an authority, that will have to issue permits for such organizations to operate.
As per the information, these permits will be administered taking into account “Legitimact, opportunity, and convenience”.
Additionally, the new Cryptocurrency law amendment will help streamline current money laundering and terrorism financing control regulations. It includes virtual assets as a subject of control and supervision for current enforcement organizations.
In addition, the law also reforms security law to launch the concept of decentralization security, which is “issued, stored, transferred and traded electronically through distributed ledger technologies.”
Uruguay Cryptocurrency Law first proposed in 2022
In September 2022, the executive power in Uruguay presented a bill to the Parliament. It aims to clarify how activity related to cryptocurrency assets will be regulated. Plus, the lower chamber of Congress approved it in December 2022. Till now, it had to undergo a series of amendments to be passed and signed into law.
Moreover, the law was inspired by a framework suggested by the Central Bank of Uruguay in 2021. It regarding the institute’s research into cryptocurrencies.
The approval of the law makes Uruguay one of the few countries to include digital assets and cryptocurrency service providers as part of its regulatory framework.
These countries include Venezuela, Brazil, Argentina, and EI Salvador.
