Senator Unveils Bill to Enable Use of Cryptocurrencies for Payments

Uruguayan Senator Juan Satori has tabled a invoice to regulate cryptocurrencies and permit corporations to settle for funds in cryptocurrencies.

Satori joins a rising listing of politicians from Spanish-speaking international locations and South America who need to mainstream the adoption of cryptocurrencies. However, the Senator doesn’t suggest to use cryptocurrencies as authorized tender like in El Salvador.

Crypto-friendly Senator tweeted on August 4th, that “today we are putting forward a world-wide breakthrough bill to ensure fair, legal and safe use by companies in connection with the production and trading of virtual currencies in Uruguay”.

The invoice proposes that “crypto assets are legally recognized and accepted and applicable in any legitimate business. They are considered valid means of payment in addition to the means of payment provided for in the Financial Inclusion Act.

Senator belongs to the National Party, the ruling party of Uruguay, and holds 10 of the 30 seats in the Senate. If the bill finds support, the government will issue three types of licenses for businesses to use cryptocurrencies. The first allows “companies to trade all crypto assets like intermediaries (exchanges) with the exception of transactions of non-financial origin”.

The second license permits the permitted occasion to “store, hold, or protect crypto assets” and the third permits the issuance of “crypto assets or utility tokens with funding”.

The National Secretariat for Combating Money Laundering and Terrorist Financing (SENACLAFT) is tasked with “regulating, controlling and auditing” the licensees.

Satori claims that “the ratio of people investing in cryptocurrencies to total population per country is small” and stresses the significance of introducing crypto regulation to “encourage investment and protect investors”.

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

Columbia seeks crypto safety

This is the newest growth amongst a quantity of international locations eager to deliver cryptocurrencies to the desk, together with Paraguay, which handed a bitcoin invoice final month, Panama is contemplating adopting cryptocurrency nationally, and Argentina with a invoice that Workers are inspired to be paid in crypto.

Columbia additionally lifted his hat when Senator Mauricio Toro tabled a invoice on July twenty seventh geared toward exchanging cryptocurrencies and defending customers.

Toro confused on Twitter that the invoice goals to guarantee “security” in cryptocurrency transactions, eradicate the black market and promote cryptocurrencies in its place to the standard banking system.

¡Radicamos de nuevo nuestro Proyecto de #PlataformasCripto!

Crearemos una reglamentacion integral para transar criptoactivos y:
-Cerrar puerta ah …
-Tener altertiva al system bancario
-Garantizar seguridad en transacciones

Léanlo aquíhttps: //t.co/1IBI98NH7h pic.twitter.com/zXBu8e1utk

– Mauricio Toro (@MauroToroO) August 3, 2021

If handed, the invoice would introduce rules that will require nationwide and worldwide cryptocurrency exchanges working within the nation to be registered with a nationwide industrial register.

Companies should adjust to anti-money laundering and terrorist financing legal guidelines, take buyer identification measures, and take due diligence, similar to reporting uncommon or suspicious exercise to the Financial Information and Analytics Unit.

In Spain, a cryptocurrency legislation was additionally just lately launched by the People’s Party (PP) that goals to legalize the use of cryptocurrencies and blockchain expertise for mortgage and insurance coverage functions.

The invoice calls for Spanish banks to implement blockchain expertise for mortgage and insurance coverage administration by automating associated processes utilizing sensible contracts.