Country overview

Uruguay is a Latin American country with a high standard of living and security. Although there is no precise regulation in the form of a crypto bill yet. However, it has crypto regulations in the form of bylaws.

Uruguay has a high danger security level according to our rating. Jurisdiction has 48.1 points (from 100) for safety level in Numbeo crime rating (1). Homicide level (2) is 11.2 per 100,000 inhabitants a year. Level of firearm-related death (3) 11.67 per 100,000 inhabitants a year.

In October 2021 the Central Bank of Uruguya has issued a statement (4) dedicated to cryptoregulations. It’s established that cryptocurrencies may be accepted in the performance of private contractual obligations, freely agreed upon by the parties, as a means of payment, provided that they are used for no other purpose than to serve as such and without prejudice to the applicable regulations on means of payment and legal tender.

Recently, the General Tax Directorate (DGI), through Consultation 6419, adopted the position that cryptocurrencies are intangible personal property that cannot be considered as money. According to this positon, crypto payments may be possible as a legal transaction of exchange of movable or immovable property.

From the general regime of composition and payment of salaries, it turns out that in some instances, cryptocurrencies could be (5) used as consideration for goods and services to individuals. However, regular payment of wages is possible only in national currency.

Based on Ambito (6), the main crypto regulators in the country are the Superintendency of Financial Services (SSF) and the Central Bank of Uruguay. The government has introduced legislation to the parliament on Sept. 5 (2022), accelerating industry regulation: The Virtual Asset Law (text in Spanish) (7).

The bill project confirms (8) the status of the Superintendency of Financial Services (SSF), a central bank entity, as a crypto regulator. It defines the following VASP activities: cryptocurrency exchange, custody services, and AML procedures. Additionally, the document defined four types of digital assets: stablecoins, governance tokens, tradable assets, and debt tokens.

The document refers to virtual assets as securities and categorizes them into four types: tradable assets, stablecoins, governance tokens, and debt tokens.

On top of that, the bill proposes(9) to create a new category of companies for virtual asset service providers (VASPs). It further seeks to amend the organic charter of the Central Bank of Uruguay (BCU) and put VASPs under the supervision of the central bank entity, the Financial Services Superintendence (SSF).

In December 2022, VA regulation proposals were approved by the local parliament. Still, according to existing regulation proposals approved by the local parliament, Uruguay will implement 2023 a licensing regime for VASPs under the Central Bank of Uruguay and its Superintendency of Financial Services (SSF).

1)Crime Index by Country 2023 Mid-Year

2)List of countries by intentional homicide rate

3)List of countries by firearm-related death rate

4)Novedades: activos virtuales - criptomonedas. News: virtual assets - cryptocurrencies. Article

5)Pago de salarios mediante criptomonedas. Payment of salaries through cryptocurrencies. Article

6)Diputados aprobó el proyecto de ley de regulación de criptomonedas. Deputies approved the cryptocurrency regulation bill. Article

7)Proyecto para Regular Activos Virtuales. Project to Regulate Virtual Assets. Article

8) A new regulatory bill grants the Uruguayan Central Bank control over the nation's crypto industry. Article

9)Crypto Regulation in Focus. Article

10)Overview. PWC