New legislation filed in Uruguay aims to regulate digital assets

Juan Sartori, Uruguay’s senator since 2020, introduced a bill that would legalize digital assets in the country, allow Uruguayan businesses to accept crypto for payments, and provide a regulatory framework to incorporate crypto into its system. financial.

“Cryptocurrencies are an opportunity to create investments and work. Today we present a bill, pioneering in the world, which aims to establish a legitimate, legal and safe use in companies related to the production and marketing of virtual currencies in Uruguay, ”wrote Senator Juan Sartori in a statement. translated tweet.

Uruguay’s bill has been compared to El Salvador’s displacement in early June to pass a law declaring bitcoin as legal tender. However, the legislation proposed by Uruguay differs in essential points.

The first is that the bill does not mark any form of cryptocurrency as legal tender, a differentiation that Sartori clarified with CoinDesk. Sartori notes in the bill that the use of cryptography by citizens in Uruguay remains low. On the contrary, this Uruguayan bill aims to act as a regulatory structure if the cryptocurrency becomes more popular in the country.

As the reads of the translated parts of The law project:

“We have observed how, in practice, the percentage of people who invest in cryptocurrencies compared to the total number of inhabitants by country is low, and the number of people who use them to buy or cancel bonds is still weaker, but we are not. away from this distant reality coming in the near future. 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 marketing of virtual assets, also known as crypto assets. , cryptocurrencies and tokens from blockchain technology. Uruguay must promote policies of inclusion of this type of industry, thus also promoting the generation of investment and work in Uruguay.

In addition to legally integrating crypto into the Uruguayan financial system, the bill lays the foundation for financial regulation and the fight against crime if passed:

“This law aims to legalize virtual assets as a means of payment and to admit them as currencies, thus providing security for the production of virtual assets and the transactions carried out with them. It is also requested that the National Secretariat for the Fight against Money Laundering and the Financing of Terrorism (SENACLAFT) keep a register of Virtual Asset Suppliers to promote greater transparency in this sector, giving it greater clarity on what is produced and sold, which is essential to possible regulation of the buying and selling of virtual assets in the future. In addition, it is necessary to formalize this industry so that there is traceability of the movements of funds linked to the sale of Virtual Assets. The standard also aims to prevent the misuse of this type of instrument by regulating its use and preventing it from being used for illegitimate or illegal purposes. Later and with the regulations subsequent to the proposal, we will have to deal with more specific regulations of Blockchain technology products and derivatives. “

Crypto companies have drawn attention to Latin America as a whole. At the end of May, Stellar Development Network invested $ 15 million in Mexican cryptocurrency exchange start-up Airtm to boost cross-border payments in Latin America. Mercado, a Brazilian stock exchange, is using $ 200 million in recent funding in part to expand across the continent.