Cryptocurrency adoption
Although Paraguay’s president rejected the idea of considering cryptocurrency mining as a business activity in the country, the Uruguayan government has decided to step up the regulation of crypto assets used in the country as a result of the planned adoption process. After a draft bill to regulate cryptocurrency was introduced by Uruguayan Senator Juan Sartori last year, the Uruguayan government has recently passed a legal decision that aims to regulate crypto assets under the supervision of the Central Bank.
The legal decision was passed on 5 September 2022 in order to set the record straight about the country’s perspectives and regulation policies for crypto assets, including ICOs, cryptocurrency exchanges, custody services, and any financial-services and digital-asset related companies. According to the decision, all companies related to crypto services will be under the administration of the Superintendency of Financial Services (SSF), an entity of the Central Bank of Uruguay, and will be subject to anti-money laundering regulations.
There are four types of digital assets described in the legal decision, namely governance tokens, debt tokens, stablecoins, and tradable assets. The announcement from the authorities stated:
"If the activity carried out with these instruments involves the exercise of financial intermediation or financial activity, it will be subject to the regulation and control of the Central Bank of Uruguay."
analyst opinion
Eda Tutkun
Although Paraguay’s president rejected the idea of considering cryptocurrency mining as a business activity in the country, the Uruguayan government has decided to step up the regulation of crypto assets used in the country as a result of the planned adoption process. After a draft bill to regulate cryptocurrency was introduced by Uruguayan Senator Juan Sartori last year, the Uruguayan government has recently passed a legal decision that aims to regulate crypto assets under the supervision of the Central Bank.
The legal decision was passed on 5 September 2022 in order to set the record straight about the country’s perspectives and regulation policies for crypto assets, including ICOs, cryptocurrency exchanges, custody services, and any financial-services and digital-asset related companies. According to the decision, all companies related to crypto services will be under the administration of the Superintendency of Financial Services (SSF), an entity of the Central Bank of Uruguay, and will be subject to anti-money laundering regulations.
There are four types of digital assets described in the legal decision, namely governance tokens, debt tokens, stablecoins, and tradable assets. The announcement from the authorities stated:
"If the activity carried out with these instruments involves the exercise of financial intermediation or financial activity, it will be subject to the regulation and control of the Central Bank of Uruguay."
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