New legislation has been introduced by the government of Uruguay at the parliament that is pertaining to regulations surrounding cryptocurrencies.
The newly proposed legislation aims to expedite the process of building a regulatory framework surrounding the cryptocurrency space in Uruguay.
The proposal also includes the Uruguay Central Bank as the governing body behind the cryptocurrency regulations in the country.
Bill Proposal was submitted on September 5
It was on September 5 when the bill was proposed to the parliament. The bill urges the parliament members to brainstorm the existing cryptocurrency framework in the country.
The goal is to come up with a cryptocurrency regulatory framework that is effective and long-term. It must cover all the digital and cryptocurrency assets plus the treatment of companies responsible for approving and operating digital assets/cryptocurrencies to the locals.
The proposal also includes important points surrounding the initial coin offerings (ICOs) that cryptocurrency businesses can offer in the country.
Most importantly, the proposal demands that every ICO must be supervised by the Superintendency of Financial Services (SSF). SSF is the central banking entity that is operating in Uruguay.
Governance over Crypto Firms and Regulatory Compliance
The proposal also provides clarification around policies that are in place to manage custody services, cryptocurrency exchanges, and any other kinds of financial services linked to cryptocurrencies.
In addition to the above, the same proposal also provides clarification and detailed guidelines surrounding the regulatory policies.
These policies include know-your-customer (KYC) and anti-money laundering (AML) guidelines. The bill also includes best practices surrounding the use of cryptocurrencies and other digital assets.
Assets Defined in the Bill
The bill proposed at the Uruguay Parliament is well sorted around the kinds of digital assets that the country will be dealing with. These assets include debt tokens, tradable assets, governance tokens, and stablecoins.
Altogether, the proposal has four different kinds of digital assets that have been addressed and detailed guidance has been provided pertaining to each asset.
Regulatory Input by the Central Bank of Uruguay
The bill also provides clarity surrounding the practices in the implementation and approval of cryptocurrency financial platforms.
The proposal also suggests that if any entity wants to make changes to the regulations or wants to get approval for operating in the country, then it needs regulatory approval.
The bill proposes that the Central Bank of Uruguay will be a very entity that will govern regulations pertaining to cryptocurrencies and review any requests launched by the crypto financial firms.
The proposal of the bill at the parliament is a very positive signal for the cryptocurrency industry in the country.
This means that the country is aiming to establish a regulated cryptocurrency environment that would help locals interact with the industry safely and with utmost security.