Uruguayan and Colombian senators introduce bills on Bitcoin (BTC)

Thu 05 Aug 2021 ▪ 16h30 ▪ 3 min read — by Rudy Bauer

Uruguay and Colombia are joining a wave of policy initiatives to regulate and update the existing cryptosystem in Latin America. On Wednesday, 4th August, Uruguayan businessman and senator, Juan Sartori, introduced a formal bill to regulate crypto. The Uruguayan bill aims to fill gaps in legislation and prevent crimes related to digital assets.

The contents of the Uruguayan bill

The bill does not alter the country’s existing legal or administrative framework. Its main purpose is to regulate the issuance, holding and trading of crypto assets. The law seeks to bring clarity to established legal norms for regulators to avoid future conflicts in the interpretation of these norms. Moreover, the bill proposes three mandatory licenses for participants in the cryptocurrency industry: trade intermediation, custodial services and issuance of virtual assets.

A trading intermediary license would be issued to those who act as an intermediary in the market. In this case, both centralised and peer-to-peer exchanges operating in the country must be registered with the relevant authorities.

A custodial license is required for those who offer securities loans, foreign exchange transactions, settlement of transactions and many more.

A license to issue crypto assets or tokens is needed for companies to issue stablecoins or proprietary tokens.

The Sartori bill establishes that cryptocurrency “is a product of free sale”. Furthermore, any person or entity “may receive or send funds in a lawful tender from their own bank accounts or licensing companies.” Thus, the document suggests that cryptocurrencies will be considered legal tender. The law is due to come into force on 7th September.

Colombia’s cryptocurrency bill

In Colombia, Senator Mauricio Toro announced new changes to the cryptocurrency bill. According to Toro, the main aim of the law is to control the black market and guarantee secure transactions.

To achieve this goal, the bill sets out a number of requirements for national and foreign exchanges, requiring organisations to register their activities with the relevant authorities. In addition, companies would be required to outline the purpose and content of the services provided, as well as to provide information on the risks associated with the irreversibility of crypto transactions.

How successful the process of passing these laws will be is going to become apparent in September. Earlier in July, Paraguayan congressmen published a bill to regulate crypto assets, but it was criticized by the cryptocurrency community.

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Rudy Bauer avatar
Rudy Bauer

Photographe, Vidéaste, webdesigner et enfin rédacteur pour CoinTribune: l'image, le digital et la blockchain sont mon dada.


The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.

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