Uruguay drafts bill to allow crypto payment options for businesses

"Bitcoin and cryptocurrency" by stockcatalog is licensed under CC BY 2.0
“Bitcoin and cryptocurrency” by stockcatalog is licensed under CC BY 2.0

Key Takeaways:

  • Senator Juan Sartori introduced a bill to allow businesses to accept cryptocurrency payments.
  • However, the bill would not treat crypto as a legal tender.
  • The development follows a stream of similar decisions in South Americana and Spanish-speaking countries.

NEW DELHI (CoinChapter.com) — Uruguay seems poised to join the list of countries leading cryptocurrency adoption, as Uruguayan Senator Juan Sartori introduced a draft bill that enables businesses to accept crypto payments. In addition, the bill will also help regulate cryptocurrency.

However, the bill will not introduce crypto as legal tender in the country. Instead, it would only allow businesses to accept crypto as payment. Currently, South American and Spanish-speaking countries are leading the world in the mainstream adoption of cryptocurrencies.

Uruguay’s Crypto Bill

The bill, introduced on August 3, aims to promote investment and protect investors “by establishing clear rules, legal, financial, and fiscal security” in virtual asset-based businesses. Additionally, the bill promises legal acceptance of virtual assets.

Moreover, cryptocurrency would be a valid means of payment as long as it complies with legal and regulatory norms.

The bill includes a provision to issues licenses to those economic agents who meet the requirements of SENACLAFT (National Secretariat for the Fight Against Money Laundering and Terrorism Financing) and the Central Bank of Uruguay.

However, only those economic agencies will require licenses whose operations are subject to anti-laundering control. The use of crypto instruments will not require permits or prior permission in other cases.

Also Read: Eleven cryptocurrency exchanges in South Korea to shut down amid regulatory pressure.

The bill introduces three types of licenses, the first of which enables companies to trade any crypto-asset ‘except transactions of non-financial origin”.

The second license allows for storing, retaining, and safeguarding cryptocurrencies or assets.

Finally, the third type of license is for individuals or firms that wish to issue crypto-assets with financial characteristics.

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.

Senator Juan Sartori on Twitter.

Additionally, while mining activities will not require special licenses, the Ministry of Industry will regulate, control, and audit entities carrying out mining operations.

The Senator highlights that the percentage of the population investing or transacting in cryptocurrencies worldwide is low at present. However, he asserts that the numbers will increase and that “we are not far from distant reality becoming the near future.”

South America’s Attraction To Cryptocurrency

Uruguay is the latest addition to the list of countries that view cryptocurrency adoption as a positive step forward for their economies.

Interestingly, the majority of these countries belong to the South and Central American region. For example, two Paraguayan Senators introduced a bill on July 14 to attract investment and promote crypto mining in the region. Moreover, the bill also seeks to regulate crypto markets to establish financial, fiscal, and legal security rules.

Also Read: LUNA hits a 3-month high after Terra enables Ethereum staking option.

Meanwhile, Panama is looking to follow in El Salvador’s footsteps in making cryptocurrency a legal tender. Argentina also joined the fray by presenting a bill that would allow workers to receive their partial or full salary in cryptocurrency.

Argentine Chamber of Deputies member José Luis Ramón believes this will strengthen the workers’ autonomy.

Columbia’s Senator Mauricio Toro introduced a crypto bill on July 27. The senator stated that the bill would target black markets. Moreover, it will regulate crypto trading and guarantee security in transactions.

The increasing acceptance of crypto in Spanish-speaking countries may pave the way to its global adoption. Moreover, efficient transaction time and decreasing fees augment crypto’s case for mainstream financial inclusion.

The crypto total market cap rose by 4.67% on August 4 to reach $1.614 trillion. However, at the time of writing, the market was at $1.568 trillion, down by 2.85% on the day.

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