URUGUAY APPROVED LAW TO REGULATE CRYPTO CURRENCIES AND DIGITAL ASSETS

On September 19, Uruguay approved Law No. 20,345, which establishes a regulatory framework for virtual assets. This law represents a significant advance in the formalization and supervision of entities in the sector, including service providers, which will now be considered financial entities under the regulation of the Central Bank of Uruguay (BCU).

The law modifies the previous Law No. 16,696 of 1995, expanding the responsibilities of the BCU to regulate not only traditional financial institutions, but also exchange houses, fund managers, and insurance companies that operate with virtual assets. In addition, it redefines the powers of the Superintendency of Financial Services, emphasizing the need for stability, transparency and consumer protection, as well as the prevention of money laundering.

It establishes that entities that offer credit may participate in specific operations according to current legislation. Other entities that carry out fund transfers or the purchase and sale of virtual assets are also regulated.

With the law, the BCU is expected to issue the necessary regulations to complete the national legal framework, facilitating more effective supervision and guaranteeing consumer protection. Finally, the definitions of book-entry securities are updated, incorporating centralized and decentralized records through the use of modern technologies.

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