Uruguayan Senator Proposes Bill to Allow Crypto Payments

An Uruguayan senator has proposed a bill to establish a legitimate, legal, and safe use of virtual currencies in businesses associated with production and commercialization.

Senator Juan Satori of Uruguay has introduced a bill to regulate cryptocurrency and allow businesses to accept cryptocurrency payments. Satori joins an increasing number of politicians from South America and Spanish-speaking countries that are attempting to mainstream cryptocurrency adoption. However, the Senator is not advocating for the use of cryptocurrency as legal tender, as El Salvador does.

Las criptomonedas son una oportunidad para crear inversión 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

“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.”

According to the bill, crypto assets will be recognized and accepted by law, making them applicable to any legal business.  They will be recognized as valid modes 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 ten of the Senate’s thirty seats. If the bill is passed, the government will issue three different types of licenses to businesses that use cryptocurrency. The first permits “companies to trade any crypto-asset through intermediaries (exchanges), except for non-financial transactions.”

The second license entitles the approved party to “store, retain, or safeguard crypto assets,” while the third license entitles the approved party to issue crypto-assets or utility tokens with financial characteristics. The country’s National Secretariat for Combating Money Laundering and Terrorism Financing (SENACLAFT) will be responsible for “regulating, controlling, and auditing” license holders.

Satori notes that “the percentage of people who invest in cryptocurrencies is low in comparison to the total number of each country,” and emphasizes the critical nature of crypto regulation to “promote investment and protect investors.”

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