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Regulation of Cryptocurrencies in Uruguay

Despite the fact that cryptocurrencies are not officially regulated in the country, Uruguay has not stayed away from digital assets. 

Large exchanges analyze the possibilities of using cryptocurrencies in the country and offer their digital products in Uruguay in order to provide exchange of digital assets, derivatives, NFTs and other crypto services. 

Cryptocurrencies have been used in a number of cases in the country to buy and sell real estate. The number of users of virtual assets in the country is growing. 

Despite the widespread use of digital currencies, Uruguay does not yet have any specific rules regarding the legal status of cryptocurrencies. 

At the moment, there is no regulation of cryptocurrencies, or organizations providing services for the commercial use of digital assets or products related to them, nor rules related to taxation.

Uruguayan politicians have begun to explore the possibility of  regulation of virtual assets. In August 2021, a bill aimed at regulating the production and commercialization of virtual assets was submitted to the Congress of Uruguay. 

Thanks to this bill, transactions with virtual assets are legal activities in Uruguay. At the same time, digital assets are not considered as money. 

Users and companies will be able to carry out transactions with virtual assets, but they should keep in mind that such activities may be subject to regulators and anti-money laundering rules.

Despite the fact that the country has not finally adopted the regulation of cryptocurrencies, the country is open to blockchain technologies and cryptocurrencies. 

In 2020, Uruguay hosted the  “Blockchain Summit Global” as part of its strategy to develop the blockchain sector and promote Uruguay as a business technology center.

Uruguay offers a number of bonuses for technology companies, encouraging the development of digital currencies. These measures are provided for in Investment Law, the Free Zone Law and the Software Law. 

The country also has a common regulatory legal base that facilitates doing business: equal treatment to foreign and local investors, a free foreign exchange market, no requirements for local counterparties, no restrictions on the repatriation of profits and a unique tax system. 

There are highly developed industries in the country where digital currency can be used: agribusiness, logistics, finance and energy and others.

Citizens of the country are actively using cryptocurrencies and the adoption of digital assets continues to grow. Residents of  Uruguay are increasingly using digital assets, and thanks to OWNR Wallet, you can now buy cryptocurrency with your credit/debit card.

 

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