Uruguay: A senator is introducing a law that allows the use of cryptocurrencies for payments
3 min readTable of Contents
The Uruguayan senator introduced a bill aimed at “introducing the legitimate, legal and safe use of cryptocurrencies in businesses.
Senator Satori thus joins the growing list of politicians from Latin American and Spanish-speaking countries seeking to introduce cryptocurrencies into the mainstream. However, the senator does not propose the use of cryptocurrencies as legal tender, as is currently the case in El Salvador.
The bill proposes that “cryptocurrencies be recognized and adopted by law and applicable in any legal area of business. They will be considered as a valid means of payment, added to those included in the Financial Inclusion Act. ”
License for crypto trading
The senator belongs to the National Party, which is the ruling party of Uruguay, and has 10 of the 30 seats in the Senate. If the bill receives support, the government will issue three types of licenses for companies using crypto. The first allows “companies to trade in any crypto assets, such as intermediaries (exchanges), except for transactions of non-financial origin”.
The second license allows the approved party to “store or protect crypto assets” and the third allows the issuance of “crypto assets or tokens and instruments with financial characteristics”.
Regulation of cryptocurrencies
The National Secretariat for Combating Money Laundering and Terrorist Financing (SENACLAFT) will be responsible for “regulating, controlling and auditing” licenses.
Satori argues that “the percentage of people who invest in cryptocurrencies compared to the total population in each country is low,” and stresses the importance of adopting cryptocurrency regulation to “encourage investment and protect investors.”
Columbia is looking for crypto security
Columbia is also trying to get cryptocurrencies into its circulation, and is not alone in this endeavor. Paraguay also submitted accounting for Bitcoin last month, Panama is trying to adopt cryptocurrencies on a national scale, and Argentina is proposing a law that would allow workers to pay cryptocurrencies.
On July 27, Columbia Senator Mauricio Toro introduced a bill targeting cryptobourses and consumer protection.
Toro stressed on Twitter that the bill seeks to “guarantee security” in crypto transactions, crowd out the black market and promote crypto as an alternative to the traditional banking system.
Regulations with rules
If approved, the proposal will introduce regulations requiring domestic and international crypto exchanges operating in the country to be registered in the national commercial register.
Businesses will need to comply with anti-money laundering and anti-terrorist financing laws, implement customer information and due diligence measures, such as reporting unusual or suspicious financial information and analysis activities.
R¡Radicamos de nuevo our project #PlatformsCripto!
We will create an integral regulation for transcripting and:
– Close the black markets
-There is an alternative to the banking system
-Garantize security in transactionsLean here https://t.co/1IBI98NH7h pic.twitter.com/zXBu8e1utk
– Mauricio Toro (@MauroToroO) August 3, 2021
Spain
The People’s Party in Spain (PP) has also recently submitted an encryption proposal that seeks to legalize the use of crypt and blockchain technology for mortgages and insurance.
The bill calls on Spanish banks to introduce blockchain technology to manage mortgages and insure automation-related processes through smart contracts.
Conclusion
It is interesting to see how one party – China, Japan, South Korea and others – are trying to regulate or ban cryptocurrencies while creating their own digital currency to subjugate their citizens, while countries like Spain, Uruguay, Argentina, Panama, Kazakhstan and others want support cryptocurrencies, introduce them into their financial systems and thus help emerging businesses and their people.
