Uruguay’s Central Bank has released a statement outlining a timeline for the near future regulation of cryptocurrency assets. The institution stated that it has formed a working group to determine the optimal strategy to regulate these assets in light of the crypto industry’s realities. Additionally, some changes to present legislation may be made in preparation for future regulation, which is scheduled to take effect at the end of the year.
Uruguay‘s Central Bank has issued a statement on virtual assets in which it defines the institution’s approach to cryptocurrency regulation. The bank has already established a study group to analyze how the crypto world operates, and in light of this, it has developed a conceptual model for how this market might be controlled in the near future.
Additionally, the institution indicated that it will engage in discussions with industry stakeholders in the country during Q4 2021 with the goal of honing its understanding of how these businesses operate. The declaration makes the following point:
During the last quarter of the year, a discussion with industry participants and links with other regulators and international organizations will be facilitated… These interactions will aid in the refinement of the conceptual framework with the goal of creating a regulatory strategy that furthers the aforementioned objectives.
With an established understanding of the cryptocurrency business, the Central Bank of Uruguay will propose amendments to current legislation by the end of the year to allow for the future formation of new crypto-related regulations.
Cryptocurrency Recommendations and Guidance
Additionally, the bank made some tips for cryptocurrency users, noting that these assets are not regarded as legal cash in Uruguay, unlike the Uruguayan peso, which is recognized and supported by the institution. With this contrast in mind, the regulatory framework for cryptocurrency could be somewhat different from the one authorized in El Salvador, where bitcoin was designated legal cash.
The central bank reiterated that no institution in the country regulates cryptocurrency-related operations. As a result, none of the safeguards available to traditional investors apply to citizens engaged in bitcoin trading or investing.
The bank urges anyone considering investing in crypto assets to do the following: Conduct a comprehensive risk assessment while trading these instruments and take the appropriate procedures to mitigate them, keeping in mind that large rewards are often coupled with high risk.
Also Read: According To PepsiCo’s CFO, Bitcoin Is Excessively Volatile And Speculative
Wallets