Stablecoin issuer / redeemer in Uruguay

BCU Stance: The BCU has issued communications clarifying its position. While it acknowledges virtual assets, it has explicitly stated that they are not considered legal tender in Uruguay and virtual asset activities generally do not fall under the traditional financial intermediation framework (e.g., banking law) unless they involve activities that would traditionally require BCU authorization (e.g., taking public deposits, issuing e-money as a payment institution). The BCU monitors the sector and indicates the possibility of future, more specific regulation.

UIAF Role: The UIAF is the key authority for AML/CFT oversight of VASPs. VASPs are required to register with the UIAF and comply with AML/CFT regulations.

Requirement: Registration with the UIAF is mandatory for virtual asset exchanges operating in Uruguay. They are considered "obligated subjects" under AML/CFT law.

Nature: This is an AML/CFT registration, not a financial license from the BCU to operate an exchange per se.

BCU Consideration: If an exchange offers services that cross into traditional financial activities (e.g., offering interest-bearing accounts in fiat, acting as a payment institution for fiat, issuing regulated financial instruments), it would likely require specific authorization from the BCU in addition to UIAF registration.

If processing payments involving Fiat Currency (e.g., facilitating fiat deposits/withdrawals, enabling merchants to accept crypto but receive fiat):

Requirement: This might require BCU authorization as a Payment Service Provider (PSP) or Electronic Payment Institution (Institución de Pagos Electrónicos - IPE), in addition to UIAF registration if they also handle virtual assets.

Nature: This is a full financial license from the BCU, which involves more stringent capital, operational, and regulatory compliance requirements. The BCU regulates these entities under its general framework for payment services.

For UIAF Registration (VASPs): There is no specific minimum capital requirement directly tied to UIAF AML/CFT registration for VASPs.

For BCU Authorization (e.g., IPEs/PSPs): If an entity's activities fall under the BCU's existing regulatory framework for financial institutions (like Payment Service Providers or Electronic Payment Institutions), then significant minimum capital requirements apply. These are determined by BCU regulations for those specific activities and can be substantial (e.g., tens of thousands to hundreds of thousands of USD equivalent, depending on the scope of activities).

Decreto N° 379/020 (Regulation of Non-Financial Obligated Subjects and Activities Regulated by Law N° 19.574), dated December 23, 2020: This crucial decree explicitly includes "providers of virtual asset services" (proveedores de servicios de activos virtuales) as obligated subjects (sujetos obligados) under the AML/CFT framework. This brought VASPs directly under the regulatory scope, requiring them to comply with the same AML/CFT obligations as traditional financial institutions and other designated non-financial businesses and professions (DNFBPs).

Exchange between virtual assets and fiat currencies.

Participation in and provision of financial services related to an issuer’s offer and/or sale of a virtual asset.

Identification and Verification:

Beneficial Ownership: Identify and take reasonable measures to verify the identity of the beneficial owner(s) behind any legal entity, trust, or other legal arrangement. This involves understanding the control structure and identifying individuals who ultimately own or control more than a certain percentage (e.g., 25%) of the entity.

Ongoing Monitoring: Continuously monitor the business relationship and transactions to ensure they are consistent with the VASP's knowledge of the customer, their business, and risk profile. This includes reviewing transactions for suspicious activity and updating customer information periodically.

Enhanced Due Diligence (EDD): Apply EDD measures for high-risk customers, relationships, or transactions. This includes, but is not limited to:

What to Report: Any transaction, attempted transaction, or operation, regardless of the amount, that the VASP suspects or has reasonable grounds to suspect is related to money laundering, terrorism financing, or underlying criminal activity.

To Whom: Reports must be submitted to the Secretaría Nacional para la Lucha contra el Lavado de Activos y el Financiamiento del Terrorismo (SEGPRE), Uruguay's FIU.

Evidence fact uy.aml.record-keeping-maintain-records-of-customer not found (may have been renamed).