Uruguay Enacts Cryptocurrency Law After Two Years Of Deliberation

According to PANews, Uruguay has officially enacted a cryptocurrency law after more than two years of discussions. The law, initially proposed two years ago, recognizes cryptocurrencies as virtual assets in the country and designates the Central Bank of Uruguay as the regulator and overseer for companies seeking to provide cryptocurrency services. This move positions Uruguay among the leading Latin American countries that have integrated cryptocurrencies into their regulatory frameworks. The Central Bank of Uruguay will oversee virtual asset service providers (VASPs) and is responsible for issuing operational licenses to such organizations. The issuance of these licenses will take into account factors such as legality, opportunity, and convenience. Additionally, the Financial Services Supervision (SSF) must identify exchanges, wallets, and even miners that fall under the VASP category. The new law also amends existing anti-money laundering and counter-terrorism financing regulations to include virtual assets under the control and supervision of current enforcement agencies. Furthermore, it reforms securities law by introducing the concept of decentralized securities, which are issued, stored, transferred, and traded electronically through distributed ledger technology.