Uruguay’s central bank has issued a statement outlining a roadmap for controlling cryptocurrency assets in the near future. The company says it has set up a group to test the best way to control these resources, taking into account the realities of the crypto industry. Also, some changes could be made to the current law to prepare for impending control by the end of the year.
The Central Bank of Uruguay hints at crypto regulation
Uruguay’s central bank has issued a statement on virtual assets where it outlines a broad roadmap that the institution will follow in the process of controlling cryptocurrency. The bank has already formed a study group to test how Crypto World works and with this in mind, it has developed a conceptual idea of how this market could be regulated soon.
The company has further announced that it will take part in discussions with the country’s artisans in the fourth quarter of 2021 with the aim of perfecting knowledge about how these companies work. The statement emphasizes:
Towards the end of the year, a dialogue with industry players and relationships with other regulators and international organizations will be promoted … These exchanges will contribute to the perfection of the conceptual framework aimed at achieving a regulatory approach that contributes to the aforementioned purpose.
With an already clear view of the cryptocurrency business, Uruguay’s central bank will propose changes to existing laws before the end of this year to establish new crypto-centric regulations in the future.
Recommendations and advice on cryptocurrency
The bank also offers some recommendations for users of cryptocurrencies, stating that these assets are not considered legal tenders in countries like Uruguayan Peso, which are recognized and supported by the institution. This difference in perspective, the establishment of a regulatory framework for crypto, may be much different than the system approved in El Salvador, where Bitcoin was declared a legal tender.
The central bank has made it clear that cryptocurrency-related activities are not regulated by any institution in the country. As a result, no protection applicable to regular investors can protect citizens involved in cryptocurrency trading or investing.
The bank advises people interested in crypto assets:
Make a thorough assessment of the risks involved when working with these instruments and take the necessary precautions to minimize them, considering that higher incomes are usually associated with higher risks.
What do you think of the Central Bank of Uruguay’s position on digital assets? Tell us in the comments section below.
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