Published on October 4, 2024
By: Ertix Truepatch
Uruguay’s Parliament has approved a new law giving the Central Bank the authority to regulate crypto exchanges, as reported by iProUP and Ámbito Financiero. Called the “Virtual Assets Law”, this legislation provides key protections for the country’s financial system, according to the Uruguayan Fintech Chamber (CUF).
“For the first time, Uruguay is creating a legal framework to recognize and regulate virtual assets, which are already well-established globally. To ensure this serves as a platform for growth, it’s crucial to understand how the Central Bank will implement the regulations, including the methods and expected timelines”.
“The “Virtual Assets Law” updates Law No. 16,696 from 1995 to change the regulations for financial entities. From now on, the Central Bank will supervise both traditional financial institutions and those that deal in crypto.
According to CUF, the Uruguayan fintech industry is experiencing annual growth of 44%. Many Latin American entrepreneurs see Uruguay as a key hub for fintech in the region, driven by its legal stability and strong tech talent.
“Uruguay boasts a talented workforce that combines unique cultural values, solid educational training, and a strong commitment to work. In the business realm, Uruguayans are recognized for their trustworthiness and transparency. Moreover, our software law offers substantial tax benefits, which provide a strong incentive for businesses to develop and hire locally. We also have excellent bandwidth and 5G connectivity—important factors that shouldn’t be overlooked”.
–Rodrigo Tumaián, President of the Uruguayan Fintech Chamber (CUF).
Uruguay: A tech leader in Latin America?
Uruguay has become a hub for major fintech events. For example, the first Gramado Summit was held in Punta del Este, bringing together entrepreneurs, business leaders, and investors from Brazil and Uruguay. The event, inaugurated by Marcus Rossi, CEO of Gramado Summit, along with Minister of Industry, Energy, and Mining Elisa Facio and Undersecretary of Tourism Remo Monzeglio, surpassed expectations, drawing nearly 2,000 attendees, well above the anticipated 1,500.
Our series on crypto adoption across various countries:
- Is cryptocurrency adoption growing in Russia? What is the current outlook?
- Bolivia Lifts Crypto Ban: The Dawn of a New Era.
- Crypto Adoption in the Caribbean: A Focus on the Dominican Republic.
- The Rise of Cryptocurrencies in Pakistan: An Overview of the Current Landscape.
- Brazil’s Crypto Boom: From Market Growth to Emerging Regulation.
- Thailand: An Emerging Hub for Digital Nomads and Cryptocurrencies.
- Wartime Digital Haven: Ukraine’s Cryptocurrency Adoption.
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