Cryptocurrency regulation bill to be considered in Uruguay

Uruguayan Senator Juan Satori introduced a bill aimed at regulating cryptocurrencyactivities and trading of digital assets.

Juan Satori tweeted thatcryptocurrencies open up new investment opportunities for people and create new jobs. Therefore, Uruguay's lawmakers, friendly to cryptocurrencies, have developed a bill to regulate the activities of firms that issue, store and trade them.

Las criptomonedas son una oportunidad para crearinversión y trabajo. Hoy presentamos un proyecto de ley, pionero en el mundo, que busca establecer un uso legítimo, legal y seguro en los negocios vinculados con la producción y comercialización de monedas virtuales en Uruguay.

— Juan Sartori (@JuanSartoriUY) August 3, 2021

Unlike the government of El Salvador, Satori does notproposes to legalize cryptoassets as a means of payment on a par with fiat currencies specified in the Law on Access to Financial Services. If the bill is approved, the government will issue three types of licenses for cryptocurrency firms.

The first license will allow exchanges and othersit is legal for intermediaries to trade cryptoassets. The second license will be required to provide services for the safe storage of cryptocurrencies, and the third should be obtained by issuers of digital currencies or internal tokens with financial characteristics. The National Secretariat for Combating Money Laundering and the Financing of Terrorism in Uruguay (SENACLAFT) will oversee and regulate the issuance of these licenses to cryptocurrency firms.

Satori said that the percentage of people investing incryptocurrencies are small compared to the total number of residents in the country. Therefore, the senator considers it necessary to develop regulatory rules that will promote the development of cryptocurrencies in Uruguay and protect investors.

At the end of July, Colombian Senator Mauricio Toro(Mauricio Toro) has introduced a similar bill. It aims to ensure the security of cryptocurrency trading, reduce the risks of using cryptoassets on the black market, and promote cryptocurrencies as an alternative to the traditional banking system.

The bill implies that local andforeign cryptocurrency exchanges operating in the country must register with the state trade register. They must comply with anti-money laundering and terrorist financing laws, implement customer protection measures, and report any suspicious cryptocurrency activity to financial regulators.

Last month, Congressmen in Paraguay also published a draft law to regulate cryptocurrencies, but it was criticized by the cryptocurrency community.

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