Uruguayan Senator Juan Satori has introduced a bill aimed at regulating cryptocurrency activities and digital asset trading.
Juan Satori wrote on Twitter that cryptocurrencies are opening up new investment opportunities for people and creating new jobs. Therefore, Uruguay’s lawmakers, friendly to cryptocurrencies, have drafted a bill to regulate the activities of firms that issue, store and trade them.
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.
– Juan Sartori (@JuanSartoriUY) August 3, 2021
Unlike the government of El Salvador, Satori does not propose legalizing crypto assets 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 other intermediaries to legally 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 the percentage of people investing in cryptocurrencies is small compared to the total population 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 presented 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 and foreign 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.