Uruguay
Retail_Trading_Status
- Analysis ID
- #821
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- 2025-12-12 05:23
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Executive Summary
Retail cryptocurrency trading is legal and formally regulated in Uruguay following the enactment of Law No. 20.345 (Virtual Assets Law) in September 2024. The framework places Virtual Asset Service Providers (VASPs) under the supervision of the Central Bank of Uruguay (BCU), requiring them to register and comply with AML/CFT obligations. The law distinguishes between 'financial' virtual assets (treated like securities) and 'non-financial' assets (subject primarily to AML rules), with a transitional compliance period for existing operators running until June 2026.
Key Pillars
Primary Regulator: Central Bank of Uruguay (BCU) via the Superintendency of Financial Services (SSF)
Mandatory Registration: All VASPs must request authorization or registration with the BCU
Asset Classification: Distinction between 'Financial Virtual Assets' (securities/stablecoins) and 'Non-Financial Virtual Assets' (e.g., Bitcoin)
AML/CFT Compliance: VASPs are designated as non-financial obligated subjects under Law No. 19.574
Transitional Regime: Existing entities may operate while their license applications are processed (deadline to apply: June 30, 2026)
Landmark Laws
Law No. 20.345 (Virtual Assets Law) (Ley N° 20.345) - Enacted: 2024-09-19
- Modifies the BCU Charter to include VASPs as supervised entities, defines virtual assets, and establishes the legal basis for their regulation. It creates a registry for VASPs and distinguishes between financial and non-financial crypto assets.
- Source
Law No. 19.574 (Comprehensive Law against Money Laundering) (Ley N° 19.574) - Enacted: 2017-12-20
- Amended by Law 20.345 to explicitly include virtual asset service providers as obligated subjects for AML/CFT reporting.
- Source
BCU Normative Project for VASPs (Proyecto Normativo BCU) - Enacted: 2025-08-21
- Proposed secondary regulations detailing the licensing requirements, capital minimums, and operational standards for Financial and Non-Financial VASPs.
Considerations
Asset Distinction: 'Non-financial' assets like Bitcoin face lighter regulation (AML focus), while 'financial' assets (stablecoins, security tokens) face stricter prudential rules.
Transitional Period: Companies operating prior to the law have until June 30, 2026, to formalize their status, meaning unlicensed but compliant entities currently operate legally.
Taxation: Corporate income (IRAE) applies to crypto activities; the distinction between foreign and Uruguayan source income is relevant for tax liability.
Banking Access: The law aims to secure banking access for VASPs by integrating them into the regulated financial system, reducing the risk of indiscriminate de-risking.
Notes
The analysis assumes the current date is December 12, 2025. The timeline indicates a rapid progression from law enactment (Sept 2024) to regulatory implementation (Aug 2025 - June 2026). Uruguay is positioning itself as a 'crypto-friendly' jurisdiction with high legal certainty, contrasting with the more volatile regulatory approaches seen in other Latin American nations.
Remaining Uncertainties
- The exact criteria for classifying specific altcoins as 'financial' vs 'non-financial' remains a subject of regulatory interpretation.
- The final text of the secondary regulations (Circulars) proposed in August 2025 has not been fully cited as approved in the Official Gazette, though the draft is public.
- How the tax authority (DGI) will interpret the new asset definitions for specific tax liabilities (Wealth Tax/IP) is not yet fully tested in practice.
Detailed Explanation
Detailed Explanation
Retail cryptocurrency trading is legal and formally regulated in Uruguay, following the enactment of Law No. 20.345, the Virtual Assets Law, on September 19, 2024. This landmark legislation establishes a comprehensive regulatory framework that places Virtual Asset Service Providers (VASPs) under the supervision of the Central Bank of Uruguay (BCU), specifically its Superintendency of Financial Services (SSF). The core of the regime is a mandatory registration requirement, where all VASPs must request authorization from the BCU to operate legally. The law also creates a critical distinction between two types of assets: 'Financial Virtual Assets,' which are treated similarly to securities and subject to stricter prudential rules, and 'Non-Financial Virtual Assets' like Bitcoin, which are primarily regulated for Anti-Money Laundering and Counter-Financing of Terrorism (AML/CFT) compliance. This classification means the regulatory burden varies significantly depending on the assets a service provider handles. The framework is further supported by the amendment of Law No. 19.574, the Comprehensive Law against Money Laundering, which now explicitly designates VASPs as obligated subjects for AML/CFT reporting. A significant feature of the new regime is a transitional period, allowing entities operating before the law's enactment to continue their activities while they formalize their status, provided they submit their license application by the deadline of June 30, 2026. This provides legal certainty for existing businesses during the implementation phase. The BCU has also advanced secondary regulations, issuing a Normative Project for VASPs on August 21, 2025, which details licensing requirements, capital minimums, and operational standards. The overarching goal of the regulation is to integrate the crypto sector into the formal financial system, thereby aiming to secure banking access for compliant VASPs and reduce de-risking by traditional banks. From a tax perspective, corporate income from crypto activities is subject to IRAE (Business Economic Activities Income Tax), with the distinction between foreign and Uruguayan source income being relevant for liability. Uruguay's approach positions it as a crypto-friendly jurisdiction with high legal certainty, contrasting with more volatile regulatory stances in the region.
Summary Points
I. Regulatory Status
* Retail cryptocurrency trading is legal and formally regulated in Uruguay.
* The regulatory framework is established by Law No. 20.345 (Virtual Assets Law), enacted on September 19, 2024.
* A transitional regime is in effect, allowing existing entities operating prior to the law to continue while applying for a license. The deadline to submit an application is June 30, 2026.
II. Key Regulatory Bodies
* Central Bank of Uruguay (BCU): The primary regulator, supervising the sector.
* Superintendency of Financial Services (SSF): The specific unit within the BCU responsible for oversight.
III. Important Legislation
* Law No. 20.345 (Virtual Assets Law): Enacted September 19, 2024. The cornerstone legislation that:
* Modifies the BCU Charter to include VASPs as supervised entities.
* Defines virtual assets and establishes a legal basis for their regulation.
* Creates a mandatory registry for VASPs.
* Distinguishes between 'Financial Virtual Assets' (treated like securities) and 'Non-Financial Virtual Assets' (e.g., Bitcoin).
* Law No. 19.574 (Comprehensive Law against Money Laundering): Enacted December 20, 2017.
* Amended by Law 20.345 to explicitly include VASPs as obligated subjects for AML/CFT reporting.
* BCU Normative Project for VASPs: Published August 21, 2025.
* Proposed secondary regulations detailing licensing requirements, capital minimums, and operational standards for both Financial and Non-Financial VASPs.
IV. Compliance Requirements
* Mandatory Registration: All Virtual Asset Service Providers (VASPs) must request authorization or registration with the BCU.
* AML/CFT Obligations: VASPs are designated as non-financial obligated subjects under Law No. 19.574 and must comply with its reporting and due diligence requirements.
* Asset-Specific Rules: Compliance requirements differ based on the asset classification:
* Financial Virtual Assets (e.g., stablecoins, security tokens) face stricter prudential regulation.
* Non-Financial Virtual Assets are subject primarily to AML/CFT rules.
* Taxation: Corporate income from crypto activities is subject to IRAE (Business Economic Activities Income Tax). The distinction between foreign and Uruguayan source income is relevant for determining tax liability.
V. Notable Restrictions or Limitations
* No specific consumer trading restrictions are detailed in the provided framework, as the focus is on entity-level regulation and licensing.
* The distinction between financial and non-financial assets creates a two-tier regulatory system, with different compliance burdens.
VI. Recent Developments or Notes
* The regulatory implementation is progressing rapidly, with the law enacted in September 2024 and detailed secondary regulations proposed by August 2025.
* The law aims to secure banking access for VASPs by integrating them into the regulated financial system, which is intended to reduce the risk of indiscriminate de-risking by banks.
* Uruguay is positioning itself as a 'crypto-friendly' jurisdiction with high legal certainty, contrasting with more volatile regulatory approaches in other Latin American nations.
Full Analysis Report
Full Analysis Report
Uruguay has transitioned from a 'hands-off' approach to a fully regulated environment with the promulgation of Law No. 20.345 in September 2024. This legislation formally integrates Virtual Asset Service Providers (VASPs) into the financial system under the oversight of the Central Bank of Uruguay (BCU). The law amends the BCU's organic charter to grant it specific powers to regulate, supervise, and sanction entities that provide services related to virtual assets, effectively ending the previous legal uncertainty where crypto was neither expressly permitted nor prohibited.
A core feature of the Uruguayan framework is the regulatory distinction between 'Financial Virtual Assets' and 'Non-Financial Virtual Assets.' Financial assets, which include those offering equity-like rights or stablecoins backed by fiat, are treated similarly to traditional securities and require a full financial license. Non-financial assets, a category that reportedly includes cryptocurrencies like Bitcoin (used primarily as a medium of exchange or store of value without a central issuer's liability), are subject to a lighter regime focused primarily on Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) compliance.
In August 2025, the BCU presented the specific regulatory project (secondary legislation) to operationalize Law 20.345. This framework establishes capital requirements, custody standards, and consumer protection rules. Notably, it creates a 'Virtual Asset Service Provider Registry' managed by the Superintendency of Financial Services (SSF). To ensure market stability during implementation, the regulator established a transitional period: entities already operating in Uruguay have until June 30, 2026, to submit their license applications, allowing them to continue operations while their files are processed.
Prior to this law, the BCU had issued warnings (e.g., in 2021 and 2022) regarding the risks of crypto assets and had even summoned exchanges like Binance for offering savings products without authorization. The new framework resolves these jurisdictional disputes by clearly defining the perimeter of regulated activity. Retail investors can now trade with the assurance that local platforms must adhere to strict KYC/AML standards and eventual prudential norms, although the full licensing of all major players is still in progress due to the ongoing transitional window.
Uruguay has transitioned from a 'hands-off' approach to a fully regulated environment with the promulgation of Law No. 20.345 in September 2024. This legislation formally integrates Virtual Asset Service Providers (VASPs) into the financial system under the oversight of the Central Bank of Uruguay (BCU). The law amends the BCU's organic charter to grant it specific powers to regulate, supervise, and sanction entities that provide services related to virtual assets, effectively ending the previous legal uncertainty where crypto was neither expressly permitted nor prohibited. A core feature of the Uruguayan framework is the regulatory distinction between 'Financial Virtual Assets' and 'Non-Financial Virtual Assets.' Financial assets, which include those offering equity-like rights or stablecoins backed by fiat, are treated similarly to traditional securities and require a full financial license. Non-financial assets, a category that reportedly includes cryptocurrencies like Bitcoin (used primarily as a medium of exchange or store of value without a central issuer's liability), are subject to a lighter regime focused primarily on Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) compliance. In August 2025, the BCU presented the specific regulatory project (secondary legislation) to operationalize Law 20.345. This framework establishes capital requirements, custody standards, and consumer protection rules. Notably, it creates a 'Virtual Asset Service Provider Registry' managed by the Superintendency of Financial Services (SSF). To ensure market stability during implementation, the regulator established a transitional period: entities already operating in Uruguay have until June 30, 2026, to submit their license applications, allowing them to continue operations while their files are processed. Prior to this law, the BCU had issued warnings (e.g., in 2021 and 2022) regarding the risks of crypto assets and had even summoned exchanges like Binance for offering savings products without authorization. The new framework resolves these jurisdictional disputes by clearly defining the perimeter of regulated activity. Retail investors can now trade with the assurance that local platforms must adhere to strict KYC/AML standards and eventual prudential norms, although the full licensing of all major players is still in progress due to the ongoing transitional window.
Source Evidence
Primary and secondary sources cited in this analysis
"Se regulan los activos virtuales y modifica disposiciones anteriores... El Banco Central de Uruguay supervisará las entidades que conforman el sistema financiero, incluyendo instituciones que realicen actividades con activos virtuales."
"El proyecto distingue entre dos tipos de proveedores: PSAV financieros y PSAV no financieros... tendrán hasta el 30 de junio de 2026 para adecuarse."
"Uruguay has officially enacted a cryptocurrency law... designates the Central Bank of Uruguay as the regulator."
"El pasado 10 de setiembre el Parlamento aprobó la Ley N°20.345 sobre Activos Virtuales... se le otorgan facultades al BCU para regular a los PSAV."
"La Ley modifica el artículo 14 de la Ley de Mercado de Valores... incluir a los activos virtuales dentro de la definición de valores escriturales."
Web Sources (14)
Sources discovered via web search grounding
Search queries used (5)
- Uruguay cryptocurrency regulation status 2025
- Ley de Activos Virtuales Uruguay 2024 aprobado
- Uruguay crypto law enforcement date
- Banco Central del Uruguay PSAV registro
- Is Binance legal in Uruguay
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https://news.bitcoin.com/uruguay-passes-cryptocurrency-law/
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https://www.bitget.com/news/detail/12560604246620
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https://www.livebitcoinnews.com/uruguay-proposes-clearer-bitcoin-regulation-in-new-framework/