The Uruguayan Congress will consider a bill to regulate cryptocurrencies

Uruguay’s executive branch has submitted a bill to Congress to give the country’s Central Bank (BCU) legal authority to regulate cryptocurrencies.

The paper proposes the creation of a new category for cryptocurrency service providers and the oversight of crypto exchanges and exchange platforms by the Uruguayan Financial Services Authority.

The bill is intended to amend the charter of the Central Bank and the law on the securities market. It will allow cryptocurrencies to be treated as uncertificated securities that only registered persons have the right to issue in accordance with the requirements established by law and regulations.

“Both already regulated crypto exchanges and companies registered after the entry into force of the law will be subject to the supervisory and control powers of the Central Bank of Uruguay,” the bill says.

The bill was submitted by the Ministry of Economy and Finance of Uruguay to the President of the General Assembly, which includes the Chamber of Deputies and the Senate. The bill must now be approved by both houses in order to become law.

Last August, Uruguayan Senator Juan Sartori introduced a bill to allow the use of cryptocurrencies as contract payments and regulate their use within the South American country, but so far the initiative has not been successful.

In October, the Central Bank of Uruguay began developing regulation of digital assets and crypto companies. Last month, the Central Bank ordered cryptocurrency exchange Binance to stop promoting crypto savings products in the country until it unveils its advertising strategy.

In April, the Ministry of the Interior of Uruguay launched a campaign called “Fake Coins: Cryptocurrency Fraud” to educate citizens about the types of scams in the crypto industry.