AIBC

Is Uruguay a step closer to accepting crypto as legal tender?

Posted:: Aug 06, 2021 10:14 Category: Americas , Crypto , Regulatory , Posted by Maria

Draft bill to regulate digital assets strengthens hopes within crypto sphere

Uruguayan Senator Juan Sartori who took the position in 2020, has introduced a draft bill that, if it goes through will see digital assets legalised in the country. This bill is viewing virtual assets as valid means of payment for goods and services in Uruguay.

The bill states that the percentage of people who invest in cryptocurrencies compared to the total number of inhabitants per country is low, and the number of people who use them to buy or cancel obligations is even lower, but with a green light to this new amendment distant reality might be coming into the near future.

Juan Sartori quote“In order to promote investment and protect investors, this bill aims to establish clear rules, legal, financial and fiscal security in businesses derived from the production and commercialisation of Virtual Assets, also known as crypto-assets, cryptocurrencies, and tokens from blockchain technology.

Uruguay needs to promote policies of inclusion of this industry, thus also promoting the generation of investment and work in Uruguay.”

The law establishes all the permits and licenses needed for institutions and Virtual Asset Service Providers. If this bill goes on to become a law, the government will then start issuing licences enabling companies to initiate trading crypto assets on exchanges.

On a translated Twitter post, senator Juan Sartori wrote “Cryptocurrencies are an opportunity to create investment and work. 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.”

Miners will be required to obtain a permit issued by the Industries Ministry and this would therefore be considered as an Industrial Activity within the Industrial Registry of the Ministry of Industry and Commerce with the bill stating that the “promotion of technical training for electrical, civil and computer engineers in the generation of virtual assets” will be included in this measure.

SENACLAFT will be in charge of the regulatory aspects when it comes to user protection as it will regulate and audit all AML and KYC regulations. The bill states that SENACLAFT “will keep a registry of virtual asset service providers.”

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