The Executive House of Uruguay sent a bill to the parliament on regulations of virtual assets. This bill suggested that regulations on virtual assets be handled by a central authority. The Central Bank of Uruguay would be charged with the duty to regulate all virtual financial assets.
The Regulation Bill
The proposal would modify and redirect control of virtual assets to the Superintendence of Financial Services (SSF). The SSF is a third-party system that delivers services to consumers on virtual assets. These categories of services rendered fall under the financial sector.
The service rendered by the SSF includes the trade of AVs for other items — either for fiat currencies or other AVs. The financial administration and safekeeping of AVs. Also, services like rendering services to the issuer of the AV.
The Central Bank of Uruguay noted that creating software for broadcasting AV doesn’t automatically make you a programmer. You can be called a programmer only when it implements what it was designed to do.
Moreso, service providers that regulate and control virtual assets as an organization should be in place. This organization will handle the financial services of these assets. However, the service providers would be under the control of the SSF to regulate and sanction any misbehavior.
Benefits Of This Proposal
In the past, there had been attempts to legalize crypto and make it a payment method in Uruguay. This attempt was passed in a bill last year in August. However, this has brought about the need for a regulation on these assets.
Under this regulation, individuals who issue out these virtual assets would be monitored. They would be under the governance of the SSF to regulate and checkmate their activities.
With this modification, previous and new owners of the virtual asset would be subject to this regulation. They would be under the control of the Central Bank of Uruguay.
If this proposed bill is approved, it would be the first step in tackling the effects of cryptocurrency. Scammers and money launderers have in the past used this as a means to perpetuate crimes. However, with this bill in place, it would tackle these issues and finally proffer solutions to them.
All these tasks and supervision are to be carried out by the Central bank of Uruguay. However, the SSF, an organization under it, would also see to the implementation of these regulations.