Central Bank of Uruguay describes a clear pathway to crypto asset regulation

The Central Bank of Uruguay has issued a statement regarding the path it would tow in the regulation of cryptocurrency assets in the near future. According to the financial institution, it has already put up a team that will decide on the best course of action in regulating these assets. And this will be done, only by taking the realities of the crypto industry into consideration. In addition, there will be a few modifications to current laws in preparation for the upcoming regulation towards the end of the year.

Central Bank of Uruguay suggesting crypto regulation

The Central Bank of Uruguay has issued a statement talking about how the institution intends to regulate cryptocurrencies. In a bid to conceptualise the regulation, the bank has  created a group to study how the crypto sector functions.

Also, the institution has announced that in the fourth quarter (Q4) of 2021, it will be talking with the bigwigs of the industry in the country. At least in that way, perfecting the knowledge about how these companies work.

Advice on Crypto

The bank was quick to note a sound of warning to users of cryptocurrency however. To begin with, it said that crypto assets are not legal tender in the country unlike El Salvador. This means that establishing a regulatory framework for crypto would be very different as well.

Also, the central bank of Uruguay repeated that presently, crypto-based activities are not regulated by any institutions in the country. So therefore, citizens are not protected when they carry out crypto trades and investments.

As a result, the bank advises people interested in crypto assets to:

Carry out a full assessment of the risks involved when operating with these instruments.

Take necessary prevention measures to counter the risks knowing well that high returns mostly means high risks.