The adoption of blockchain technology and asset tokenization is advancing at a rapid pace, but the real engine driving its global development is the existence of a clear, consistent and innovation-friendly legal framework.
Some countries have already established themselves as regulatory benchmarks, establishing specific rules for cryptoassets, DLT infrastructures and token issuance with legal backing. In this article we show you relevant information about blockchain regulation in Uruguay, which you can use as a guide if you are looking to operate internationally or evaluate different strategic locations.
Current legislation on blockchain and virtual assets in Uruguay
Virtual Assets Law (No. 20,345)
As of September 2024, Law No. 20,345 and PSAVs in Uruguay. The BCU and the SSF supervise and authorize PSAVs, requiring transparency and consumer protection. Extends securities market regulation to DLT instruments.
Integral Anti-Money Laundering Law (No. 19.574)
Establishes the main framework for the prevention of money laundering and terrorist financing. Includes PSAVs as regulated entities as of 2022. Requires client identification, monitoring and reporting to the UIAF. Complies with FATF standards.
UIAF and BCU Regulations on PSAV
The UIAF and the BCU have issued specific regulations for the supervision of VSPs. They establish internal control, monitoring and suspicious transaction reporting obligations. Non-compliance may be administratively sanctioned. They reinforce the prevention of financial crimes.
Communication from the Central Bank of Uruguay (BCU) regarding virtual assets
BCU clarifies that cryptoassets are not legal tender in Uruguay. Warns about risks and requires registration and compliance with AML/CFT rules for PSAVs. Imposes minimum standards of transparency and consumer protection. Maintains active supervision of the sector.
Tokenization makes it possible to digitally represent real-world assets through blockchain, but for it to have legal value, it is essential that there is a regulatory framework that recognizes this operation. Uruguay adopts its own approach, establishing specific rules for the issuance, custody or trading of tokens. In this block we explain how asset tokenization is regulated from a legal point of view, taking an advanced jurisdiction such as Uruguay as an example.
Regulation of asset tokenization in Uruguay
Uruguay has had Law No. 20,345 since 2024, which comprehensively regulates virtual assets and grants the Central Bank (BCU) and the Superintendency of Financial Services (SSF) the supervision of virtual asset service providers (PSAV). The law extends securities market regulation to marketable securities managed in DLT technology, making security tokens that qualify as securities subject to the Securities Market Law and the supervision of the SSF, with issuance, registration and transparency requirements.
For the tokenization of non-financial assets there is still no specific sectorial regulation, so these projects are structured under Uruguayan private law and tax and consumer protection obligations apply according to the nature of the tokenized asset. The use of DLT technology is not expressly recognized as an official registration system outside the financial sphere, although it may provide evidentiary value in transactions and legal relationships.
Uruguay has not implemented regulatory sandboxes or DLT pilot regimes, but the new law lays the groundwork for the BCU to define financial services on virtual assets and supervise industry players. The regulatory environment is favorable and a regulatory evolution is expected to consolidate a clearer and more competitive framework for tokenization, aligned with FATF standards and the experience of the Uruguayan financial regulator.
Central Bank of Uruguay (BCU)
The BCU is the competent authority in the regulation and supervision of the Uruguayan financial system. Since Law No. 20,345 (2024), it regulates and authorizes PSAVs, establishing prudential and operational requirements. It supervises their operations, issues guidelines on virtual assets and coordinates with the UIAF for AML/CFT control.
Superintendency of Financial Services (SSF)
The SSF is the division of the BCU that manages, analyzes and supervises the registration and accreditation process of the PSAVs and the entities of the Uruguayan financial system, promoting the stability, solvency and transparency of the market. It establishes rules, monitors compliance with legislation and applies sanctions when appropriate.
Financial Information and Analysis Unit (UIAF)
The UIAF is the body in charge of the prevention of money laundering and terrorist financing in Uruguay. It supervises compliance with AML/CFT obligations by PSAVs, manages the registers of regulated entities and analyzes suspicious transactions reported, coordinating with international organizations.
General Tax Directorate (DGI)
The DGI is the national tax authority. It establishes the tax criteria applicable to activities with virtual assets, audits the declaration of income derived from operations with cryptoassets and verifies compliance with tax obligations by PSAVs and taxpayers.
Launching a business based on digital assets requires more than just technology: it is also necessary to comply with legal requirements such as licensing, registration and regulatory obligations. These conditions ensure that the business model is viable and sustainable over time, and that it meets transparency and fraud prevention standards. In this section we explore what licenses are usually required and what compliance criteria blockchain companies operating in Uruguay must follow.
What licenses and requirements are needed to operate with cryptoassets in Uruguay?
PSAV Uruguay Registration
Since the entry into force of Law No. 20,345, it is mandatory for virtual asset service providers (VASPs) to register and obtain authorization from the Central Bank of Uruguay (BCU). In addition, they must register as regulated entities with the Financial Information and Analysis Unit (UIAF) in order to comply with the regulations for the prevention of money laundering and financing of terrorism (AML/CFT).
AML/KYC Compliance
PSAVs must implement policies to prevent money laundering and terrorist financing, including customer identification and verification (KYC) controls, transaction monitoring, risk analysis and suspicious transaction reporting to the UIAF. Compliance with these obligations is essential to operate legally and maintain BCU authorization.
Tax obligations
Income generated by activities with cryptoassets is subject to the Uruguayan tax framework. PSAVs and taxpayers must declare this income before the General Tax Directorate (DGI), complying with the tax provisions in force and keeping adequate accounting records that reflect the operations with virtual assets, according to the nature of the activity and the type of taxpayer.
Are you exploring developing your blockchain project in Uruguay?
At Metlabs we help companies like yours and offer comprehensive support in the development of blockchain projects and tokenization of assets such as real estate, carbon credits, commodities, intellectual property, financial instruments, franchises and more, fully aligned with blockchain regulation in Uruguay and international regulatory standards.
Contact us and find out how we can help you meeting all your business model needs, from technical validation and structuring to design, development and implementation of custom blockchain solutions, ready to scale from day one.