Uruguay’s central bank has released a statement describing a roadmap for regulating crypto assets in the near future. The institution stated that it has set up a group to examine the best possible way to regulate these assets, keeping in mind the realities of the cryptocurrency industry. Also, some amendments can be made to the existing laws to prepare for the upcoming regulation at the end of the year.
Uruguay’s central bank hints at regulating cryptocurrency
The Central Bank of Uruguay has released a statement on virtual assets where it roughly describes the roadmap that the institution will follow in the process of regulating cryptocurrency. The bank has already set up a study group to examine how the crypto world works, and with that in mind, come up with a conceptual idea of how this market will soon be regulated.
The Foundation also announced that during the fourth quarter of 2021 it will participate in talks with industry players in the country with the aim of mastering knowledge on how these companies operate. The statement confirmed:
In the last quarter of the year, dialogue with industry actors and relations with other regulators and international organizations will be strengthened… These exchanges will contribute to the improvement of the conceptual framework with the aim of achieving a regulatory approach that contributes to the above purposes.
With an already clear view of the cryptocurrency business, Uruguay’s central bank will propose amendments to existing laws before the end of this year, to better accommodate the creation of new crypto-focused regulations in the future.
Cryptocurrency tips and tricks
The bank also offered some recommendations for cryptocurrency users, noting that these assets are not considered legal tender in the country like the Uruguayan peso, which is recognized and backed by the institution. In light of this distinction, the creation of a regulatory framework for cryptocurrencies could be very different from that adopted in El Salvador, where Bitcoin was declared legal tender.
The Central Bank clarified that activities related to cryptocurrency are not subject to regulation by any institutions in the country. As a result, none of the protections that apply to ordinary investors can protect citizens involved in cryptocurrency trading or investments.
The bank advises people interested in crypto assets to:
Make a thorough assessment of the risks assumed when working with these tools and take precautions to mitigate them, bearing in mind that higher returns are generally associated with higher risks.
What do you think of the position taken by the Central Bank of Uruguay with regard to digital assets? Tell us in the comments section below.
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