A senator from Uruguay has introduced legislation to “establish a legitimate, legal, and safe use in businesses related to the production and commercialization of virtual currencies.”
Uruguayan Senator Juan Sartori has proposed legislation to regulate cryptocurrency and allow businesses to accept cryptocurrency payments.
Sartori joins a growing list of politicians from South America and Spanish-speaking countries who are attempting to mainstream cryptocurrency adoption. However, unlike in El Salvador, the senator does not propose the use of cryptocurrency as legal tender.
“Today we present a bill, pioneer in the world, that seeks to establish a legitimate, legal, and safe use in businesses related to the production and commercialization of virtual currencies in Uruguay,” the crypto-friendly Senator tweeted on Wednesday.
According to the bill, “crypto assets will be recognized and accepted by law and applicable in any legal business.” They will be considered a valid means of payment, in addition to those listed in the Financial Inclusion Law.”
The senator is a member of Uruguay’s ruling National Party, which controls 10 of the 30 Senate seats. If the bill is passed, the government will issue three types of licenses to businesses that use cryptocurrency. The first allows “companies to trade any crypto-asset such as intermediaries (exchanges) except non-financial transactions.”
The second license allows the approved party to “store, retain, or safeguard crypto assets,” and the third permits the issuance of “crypto-assets or utility tokens with financial characteristics.”
The license holders will be “regulated, controlled, and audited” by the country’s National Secretariat for the Fight Against Money Laundering and Terrorist Financing.
Sartori claims that “the percentage of people who invest in cryptocurrencies compared to the total number of inhabitants per country is low,” emphasizing the importance of crypto regulation to “promote investment and protect investors.”
Columbia is looking for crypto security.
The development is the latest among a number of countries looking to bring cryptocurrency into the fold, including Paraguay, which saw a Bitcoin bill submitted last month; Panama, which is looking to adopt cryptocurrency on a national scale; and Argentina, which has a bill calling for workers to be paid in cryptocurrency.
Columbia has also thrown its hat into the ring, with Senator Mauricio Toro introducing legislation on crypto exchanges and consumer protection on July 27.
Toro stated on Twitter that the bill aims to “guarantee security” in cryptocurrency transactions, eliminate the black market, and promote cryptocurrency as an alternative to the traditional banking system.
If passed, the bill will require domestic and international crypto exchanges operating in the country to register with the national commercial register.
Firms will be required to follow anti-money laundering and terrorism financing laws, as well as implement customer awareness and due diligence measures, such as reporting unusual or suspicious activity to the Financial Information and Analysis Unit.
In Spain, the People’s Party recently introduced a crypto bill that seeks to legalize the use of cryptocurrency and blockchain technology for mortgage and insurance purposes.
The bill requires Spanish banks to use blockchain technology to manage mortgages and insurance by automating related processes with smart contracts.