The Central Bank of Uruguay issued a statement outlining a roadmap for the regulation of cryptocurrency assets in the near future. The institution said it created a group to examine the best possible way to regulate these assets, given the realities of the cryptography industry. In addition, some changes could be made to the laws in force to prepare the next regulation at the end of the year.
Central Bank of Uruguay gives tips on cryptocurrency regulation
The Central Bank of Uruguay issued a statement on virtual assets in which it roughly describes the path that the institution will follow in the process of regulating cryptocurrencies. The bank has already created a study group to examine how the world of cryptocurrency works, and with that in mind, it has created a conceptual idea of how this market can be regulated in the near future.
The institution also announced that, during the fourth quarter of 2021, it will participate in conversations with industry players in the country with the aim of deepening knowledge about how these companies operate. The statement highlights:
In the last quarter of the year, dialogue with sector actors and relationships with other regulators and international bodies will be encouraged… These discussions will contribute to the improvement of the conceptual framework with a view to achieving a regulatory approach that contributes to the aforementioned purposes. .
With an already clear view of the cryptocurrency industry, the Central Bank of Uruguay will propose changes to existing laws before the end of this year to better accommodate the introduction of new regulations focusing on cryptography in the future.
Recommendations and Advice on Cryptocurrencies
The bank also made some recommendations to users of cryptocurrencies, noting that such assets are not considered legal tender in the country, such as the Uruguayan peso, which is recognized and supported by the institution. In view of this distinction, the establishment of a regulatory framework for cryptocurrencies could be very different from that approved in El Salvador, where Bitcoin was declared legal tender.
The central bank clarified that activities related to cryptocurrency are not regulated by any institution in the country. As a result, none of the protections that apply to regular investors could protect citizens involved in trading or investing in cryptocurrencies.
The bank advises people interested in cryptographic assets to:
Make a thorough assessment of the risks involved in using these instruments and take the necessary precautions to mitigate them, bearing in mind that high returns are often associated with high risks.