New Uruguay Bill Could Legalize Crypto As A Payment Method

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A new bill presented to the Senate in Uruguay could regulate cryptocurrency transactions and also legalize cryptocurrency as an accepted payment method in the country. If approved, the project proposed by Senator Juan Sartori would also introduce licenses for Virtual Asset Service Providers (VASPs) that would be issued by the government, classifying them into three different groups.

Uruguay bill seeks to legalize crypto payments

A new bill presented to the Uruguayan Senate on August 3 proposes the legalization of cryptocurrencies as a valid means of payment for goods and services in the country.

Proposed by Uruguayan Senator Juan Sartori, the bill establishes permits and licenses for institutions and providers of virtual asset services, and places cryptocurrency activities under the oversight of Senaclaft, the national body of money laundering monitoring.

In its fifth article, the “Cryptoassets Act” (as it has been called) announces the legality of cryptocurrency for payments, but the proposal does not declare Bitcoin or other cryptocurrencies as legal tender as El Salvador did on June 9. The article states the cryptocurrencies will be:

… Recognized and accepted by law and applicable in any legal enterprise. They will be considered a valid means of payment, in addition to those included in the Financial Inclusion Law, provided that they comply with the standards provided by law and regulatory standard.

VASPs will need to obtain licenses

Another interesting part of the project is a licensing system for VASPS, which provides for three types of permits for these institutions. One type of license will be issued exclusively to cryptocurrency exchanges. The second type of license will regulate cryptocurrency custodians, and the third will deal with crypto assets or utility tokens with financial characteristics.

While mining companies will not need a special license to operate, they will still need to obtain a permit issued by the country’s Ministry of Industries. Mining would also be considered an industrial activity within the industrial register of the Ministry of Industry and Trade, in order to promote standards and rules relating to this ecosystem.

If approved, Senaclaft would be responsible for maintaining a level of vigilance on cryptocurrency exchanges. The institution will maintain a list of VASPs, which will have to comply with the AML and KYC regulations already in force. The institution will have to audit and regulate the activities of these companies.

What do you think of Uruguay’s new cryptocurrency bill? Tell us in the comments section below.

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