Uruguay Enacts Crypto Regulation Law, Positioning as LATAM Leader

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New legislation grants Uruguay's Central Bank oversight of crypto exchanges, but industry leaders seek further clarity on implementation details.

Uruguay has taken a significant step in cryptocurrency regulation with the recent signing of a new law by President Luis Lacalle Pou. This legislation empowers the nation's Central Bank to supervise domestic crypto exchanges, marking Uruguay as a frontrunner in Latin American crypto regulation.

The Uruguayan Fintech Chamber (CUF) has welcomed the law, describing it as "an important framework of guarantees for the financial system" and "a significant milestone" for industry progress. The CUF estimates the country's annual fintech industry growth at an impressive 44%.

Uruguay's Regulatory Leap in Crypto Space

Public figures are hailing Uruguay as "one of the few nations in the LATAM region" with a comprehensive "legal framework" for cryptocurrencies. This move aligns Uruguay with countries like Brazil, Venezuela, and Argentina, which have implemented similar measures, while distinguishing itself from El Salvador's more radical approach of granting Bitcoin legal tender status.

The new law establishes the Central Bank as the primary supervisor of crypto providers, mandating a registry system and setting criteria for operating permits. It also requires crypto exchanges, fund managers, and wallet operators to comply with anti-money laundering and counter-terrorism financing protocols.

Industry Calls for Regulatory Clarity

While the legislation is a significant step forward, industry leaders are calling for more details on its implementation. The CUF emphasized the need to understand "how the Central Bank will implement this regulation" and is awaiting information on "the forms and estimated deadlines" for crypto operators.

This law is the culmination of a process that began in late 2021 when the Central Bank first explored regulatory options. The government refined these recommendations before submitting a draft bill to parliament, which was ultimately passed last month.

Defining the Crypto Landscape

The new legislation also modifies existing securities law to provide legal definitions for terms such as "cryptoasset," further clarifying the regulatory landscape. This comprehensive approach positions Uruguay as a potential model for crypto regulation in Latin America, balancing innovation with regulatory oversight.

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Author

Nikolas Sargeant

Nik is a content and public relations specialist with an ever-growing interest in Crypto. He has been published on several leading Crypto and blockchain based news sites. He is currently based in Spain, but hails from the Pacific Northwest in the US.