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Uruguay shares Roadmap to regulate Bitcoin and other cryptocurrencies

The Central Bank of Uruguay has shared a roadmap for regulating cryptocurrencies. The bank had earlier created a study group to study how the crypto world functions, and based on their finding, the future path has been put forward. The Latin American country is also eyeing crypto-based implications in the stock market. And the potential to improve payment system efficiency.

In the last quarter of the year, a dialogue will be promoted with industry players and relations with other regulators and international organizations. These exchanges will contribute to perfecting the conceptual framework with a view to achieving a regulatory approach that contributes to the aforementioned purposes.

– Central Bank of Uruguay said in a statement

With already a much clear view of the cryptocurrency business, the Central Bank of Uruguay will propose modifications to the current laws before the end of this year. They will ensure a better establishment of new crypto-focused regulations in the future.

The bank of Uruguay also announced that it would be involved in talks with industry actors. The objective of perfecting the knowledge about how these companies work. 

CBU’s recommendations on Cryptocurrency

The bank also introduced some recommendations for the crypto users of the country. First, declaring that these assets are not considered legal tender in the country like the Uruguayan peso, which is recognized and backed by the institution.

This distinction in view, establishing a regulatory framework for crypto could be very different from the one approved in El Salvador as their bitcoin was declared legal tender.

The bank suggests people interested in crypto assets to:

“Carry out an exhaustive assessment of the risks assumed when operating with these instruments and take the necessary precautions to mitigate them. Taking into account that high returns are generally associated with high risks.”

– Central Bank of Uruguay

The central bank also mentioned “strong eagerness” in the market to implement new business models. It received several requests to review this issue through the innovation office.

A dialogue will be promoted with industry players while experiences from other regulators and international organizations will be analyzed.

A proposal to establish a regulatory framework for virtual assets will be finalized by year-end.

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