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Senator introduces bill to allow use of crypto for payments

Uruguayan Senator Juan Satori introduced a bill to regulate cryptocurrency and allow businesses to accept crypto payments.

Satori joins a growing list of politicians in South America and Spanish-speaking countries seeking to mainstream crypto adoption. However, the senator is not proposing the use of crypto as legal tender as in El Salvador.

The crypto-friendly senator tweeted on August 4 that “today we present a bill, pioneering in the world, which aims to establish a legitimate, legal and safe use in companies related to the production and marketing of virtual currencies in Uruguay”.

The bill proposes that “crypto assets be recognized and accepted by law and enforceable in any legal enterprise.” They will be considered a valid means of payment, added to those included in the law on financial inclusion.

The senator belongs to the National Party which is the ruling party in Uruguay and holds 10 of the 30 seats in the Senate. If the bill gains support, the government will issue three types of licenses for companies using crypto. The first allows “companies to trade any crypto-asset such as intermediaries (exchanges) with the exception of transactions of non-financial origin”.

The second license allows the approved party to “store, maintain or protect crypto assets” and the third allows the issuance of “crypto assets or utility tokens with financial characteristics”.

The country’s National Secretariat for Combating Money Laundering and the Financing of Terrorism (SENACLAFT) will be responsible for “regulating, controlling and auditing” license holders.

Satori claims that “the percentage of people who invest in cryptocurrencies compared to the total number of inhabitants per country is low” and stresses the importance of adopting crypto regulations to “promote investments and protect investors”.

Related: Bank of America Shows 4 Potential Benefits of El Salvador’s Bitcoin Strategy

Columbia seeks crypto security

The development is the latest among a number of countries looking to bring crypto into the fold, including Paraguay, which saw a Bitcoin bill submitted last month, with Panama considering adopting the cryptocurrency to nationwide and Argentina with a bill calling for workers. to pay in crypto.

Columbia threw its hat in the ring as well, with Senator Mauricio Toro introducing a bill on July 27 targeting crypto exchanges and consumer protection.

Toro pointed out on Twitter that the bill seeks to “ensure the security” of crypto transactions, eradicate the black market, and promote crypto as an alternative to the traditional banking system.

If approved, the bill will introduce regulations requiring national and international crypto exchanges operating in the country to register with the National Trade Register.

Businesses will need to comply with anti-money laundering and terrorist financing laws, implement customer awareness and due diligence measures such as reporting unusual or suspicious activity to the Information Unit and financial analysis.

In Spain, a crypto bill was also recently introduced by the Popular Party (PP), seeking to legalize the use of crypto and blockchain technology for mortgage and insurance purposes.

The bill calls on Spanish banks to deploy blockchain technology to manage mortgages and insurance by automating related processes using smart contracts.



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Erica Gill

The author Erica Gill

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