Uruguay Regulator Suggests Potential Cryptocurrency Real Estate Exchanges | Sept 16

An Uruguayan financial regulator issued a contradicting statement in response to its view of asset sales for cryptocurrencies. Accordingly, the regulator has suggested that cryptocurrency real estate exchanges can be carried out in appropriate circumstances.

The Uruguayan regulator suggests that cryptocurrency real estate exchanges are possible.

The Uruguayan regulator suggests that cryptocurrency real estate exchanges are possible.

Per El Observador, Montevideo-based notary Pérez del Castillo & Asociados approached the General Department of Taxation (known locally as DGI), an agency under the country’s Ministry of Economy and Finance, on the matter.

The media company noted that many “dedicated portals” have popped up in the Latin American country offering real estate for sale for cryptocurrencies. It added that an increasing number of asset providers are also announcing that they will accept crypto payments.

However, the notary’s request has received mixed responses from the DGI on this subject. The agency stated that such a “sale” is, in fact, not a traditional “sale of real estate.” Instead, it would be classified as an “asset exchange” – whereby an “intangible asset” (cryptocurrency) is exchanged for a tangible real estate “asset.”

Uruguayan regulator suggests crypto real estate exchanges can be conducted – DHOLD’s answer.

DGI notes that for the “sale” to take place, the money must change hands. And since the Uruguayan legal system does not recognize digital tokens with monetary value, cryptocurrencies cannot be used for legal “buying and selling.”

However, the DGI response indicated that cryptocurrencies might have legal status despite being “intangible personal property.” This would make it possible to use it as a medium of exchange, a fact that, according to mainstream economic theory, it fulfills at least one of the properties of money.

At this point, it is an exaggeration that the “exchange” of crypto real estate should not be encouraged.

The agency added that a swap is still a taxable event – and even crypto-powered asset “exchanges” must be registered with the land registry and taxed with an appropriate tax, which is believed to be the peso value of the cryptocurrency at the time of sale.

The country’s central bank recently announced that it is preparing to release a statement on cryptocurrencies that is expected to outline its policy on tokens and how to manage them. The information will be published in the next few weeks.

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