A new draft law introduced in the Senate in Uruguay could regulate cryptocurrency transactions, and also legalize cryptocurrency as an acceptable payment method in the country. If approved, the draft proposed by Senator Juan Sartori would also introduce licenses for Virtual Asset Service Providers (VASPs) issued by the government, categorizing them into three different groups.
Draft law in Uruguay seeks to legalize crypto payments
a new draft law introduced On August 3, the Senate of Uruguay proposed the legalization of cryptocurrencies as a legitimate means of payment for goods and services in the country.
Proposed by Uruguay Senator Juan Sartori, the draft law establishes permits and licenses for institutions and virtual asset service providers, and puts the cryptocurrency business under the watch of national money-laundering watchdog Senacraft.
In its fifth article, the “CryptoAsset Law” (as it is called) declares the legality of cryptocurrencies for payment, but the proposal prohibits declaring bitcoin or other cryptocurrencies as legal tender, like in El Salvador on June 9. is less. The article states the cryptocurrency will be:
… recognized and sanctioned by law and applicable in any legal profession. In addition to those covered by the Financial Inclusion Act, they will be considered a legitimate means of payment, provided they comply with the norms that the law and regulatory norms provide.
VASP will have to take license
Another interesting part of the draft is a system of licenses for VASPS, which presupposes three types of permits for these institutions. One type of license will be issued exclusively to cryptocurrency exchanges. The second type of license would regulate cryptocurrency custody providers, and the third would deal with a crypto asset or utility token with financial characteristics.
Although mining companies would not require a special license to operate, they would have to obtain a permit issued by the country’s Ministry of Industry. Mining will be considered an industrial activity within the Industrial Registry of the Ministry of Industry and Commerce to promote standards and regulations on that ecosystem.
If approved, Senacraft will be responsible for maintaining the level of vigilance on cryptocurrency exchanges. The institution will maintain a list of VASPs who have to comply with the AML and KYC norms already in force. The institution will have to audit and regulate the activities of such companies.
What do you think about the newly proposed Uruguay cryptocurrency draft law? Tell us in the comments section below.
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