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Central Bank of Uruguay will present a proposal to regulate cryptocurrencies by the end of 2021

The Central Bank of Uruguay (BCU), the state entity that regulates and establishes the provisions applicable to money in the South American country, announced the creation of a work plan for a possible regulation that addresses Bitcoin, the main digital currencies and companies that offer services associated with these assets.

Central Bank of Uruguay will present a proposal to regulate cryptocurrencies by the end of 2021

Central Bank of Uruguay will present a proposal to regulate cryptocurrencies by the end of 2021

This was indicated by the Central Bank of Uruguay in a statement published on October 1, where it reported on the different steps contemplated in its agenda in relation to digital currencies in the country, in attention to the properties that these assets have which could used for illegal purposes.

Among the BCU’s plans is to present a regulatory proposal before the end of 2021, in which it would propose some changes to the legal frameworks currently in force applicable to digital currencies. Among the plans is to evaluate the commercial and operational properties of these assets to present laws that best fit this ecosystem.

According to the BCU, this process will go hand in hand with the main representatives and companies of the industry, precisely to pay attention to the needs of the sector, but without losing sight of the perspective that other regulatory entities and international organizations have had with respect to to the subject, in order to take advantage of knowledge and expertise when designing regulatory frameworks.

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Among the considerations that BCU makes about the need for effective regulation, the entity specifically cites three aspects:

  • Digital currencies do not apply under the status of money within the country.
  • Their issuance and marketing are not currently subject to specific regulation.
  • They are assets subject to great volatility in terms of their price in the main associated markets.
  • Most of these coins guarantee the anonymity of operations, aspects that represent significant risks for users.
  • It is worth noting that the bank already has a working group precisely to monitor these assets from an interdisciplinary perspective. This allowed the development of a conceptual framework that addresses the different activities associated with digital currencies.

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