This week, the Central Bank of Uruguay presented its regulation plan for Bitcoin in the country.
This movement is in several countries around the world, which in recent months received a recommendation by the GaFi to regulate the cryptocurrency market. The IMF also said recently, through a representative, that it is important to urgently regulate the market before it loses control.
Countries like Brazil and Paraguay have already seen bills in their legislatures advance this December 2021, showing that the South American region is paying attention to the sector.
BC Uruguay presents plan to regulate Bitcoin
In August 2021, a senator from Uruguay introduced a bill to create rules for Bitcoin in the country. According to Juan Sartori, cryptocurrencies are excellent opportunities to generate investment and work in the local economy, and their use should be legitimized by the country.
With an eye on the evolution of the debate, BC Uruguay now released the “Conceptual framework for the regulatory treatment of Virtual Assets“, a document that presents the organization’s understanding of the future regulation of Bitcoin in the country.
In addition to talking about what can or cannot be done, this document hopes to contribute to the clarification of this sector and future regulatory debates in Brazil’s neighboring country.
One of the understandings of the BC of Uruguay that draws attention is the legal treatment of cryptocurrencies and cryptoactives, which should not be similar to that of Bacen in Brazil. In Brazil, Bitcoin is considered an asset, not a currency, a view that should not be shared by the authority of the neighboring country.
“The term cryptoactive must be understood as a synonym for the term virtual asset. On the other hand, the term “cryptocurrency” is not synonymous with “virtual asset”, but refers specifically to those cryptographic tokens that were designed with the aim of fulfilling the functions of money and serving as a means of payment, for example, Bitcoin” .
This makes it clear that the Uruguayan authority already looks to Bitcoin as a currency and should guide discussions based on this document.
Market will be regulated soon
In the race for Bitcoin regulation in Uruguay, the local market expects rules to be created for cryptocurrencies, tokens, NFTs, fan tokens, among others.
In a conversation with El Pais, representatives of BC Uruguay made it clear that this work is still conceptual and meets GaFi’s recommendations on the treatment of virtual assets.
Thus, it is expected that discussions will soon move forward to regulate the local market, creating a legal framework for businesses to follow the rules.