Is Uruguay Next in Line to Allow Crypto Payments?

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El Salvador’s widespread crypto payments adoption has resulted in a slew of countries who want to do the same. It seems that Uruguay is next in line, after a senator proposed a bill that would allow crypto payments between two parties. The lawmaker has made it clear that this isn’t widespread adoption of crypto. It only allows for payments for legal transactions between two parties, which is still better than nothing.

The senator in question was Juan Sartori. He is looking to provide legal, financial, and fiscal security in the business which stems from the increased popularity of cryptocurrencies. With the new bill, crypto payments will be recognized as legal in Uruguay, which is a major stepping stone for Bitcoin and the world of cryptos.

A Revolutionary Move

The bill was presented on Tuesday by Sen. Sartori, officially recognizing cryptocurrencies in Uruguay. It opens up the way for numerous new businesses and industries, including Bitcoin gambling and the such. Let’s be clear about it – this isn’t like El Salvador. Uruguay is merely making crypto payments between two parties legal, but that’s still more than the Western world would accept.

Under the new bill, cryptos in Uruguay are products of free sale under entities and individuals that want to commercialize them. Any natural or legal person can now receive cryptocurrencies as legal tender, moving them in and out of their bank accounts or those of licensed companies. It’s a revolutionary move that will change Uruguay’s financial landscape, and already has many fans.

Of course, not everything is done yet. The bill should pass into a law first. When that happens, the government will issue a “first license” that will enable companies to trade crypto with no legal obstacles. A separate license will be issued for the storing, holding, and safekeeping cryptocurrencies. According to the bill, a third one may be needed too, which would apply to crypto assets with financial characteristics.

Who Gets the License?

Uruguay’s government will issue the licenses only to entities that comply with the anti-money laundering laws. For any other transactions, the use of all tools and instruments will be free and will not require any licenses or permits.

Sen. Sartori has also stipulated the regulation of crypto mining which is a hot topic these days due to its environmental impact. While miners will be able to operate without a license, they will need a permit from Uruguay’s Ministry of Industry, Energy, and Mining.

John Sartori is a member of the ruling National Party and ran for president in 2019. Uruguay’s Senate is ruled by the National Party and its allies who have formed a coalition called Coalicion Multicolor. They hold the majority of seats (17 out of 30), so the fact that the bill comes from their ranks is a huge mark for cryptocurrencies.

It remains to be seen if it’ll turn to a law which would certainly mean a lot to South American miners and investors. We’re crossing our fingers that it happens, which would certainly send Bitcoin’s price flying.

August 11, 2021: • No Comments

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