Uruguay and Colombia move forward with digital currency regulation plans

Getting your Trinity Audio player ready...

Lawmakers in Uruguay and Colombia have brought forward bills to regulate the digital currency market in their respective countries, in the latest steps from Latin American countries to bring greater government control to the digital currency markets.

Senator Juan Sartori brought forward the bill in Uruguay, which aims to cover the current gaps in rules for the sector, with a view to reducing criminality associated with digital currencies like BTC.

Las criptomonedas son una oportunidad para crear inversión y trabajo. Hoy presentamos un proyecto de ley, pionero en el mundo, que busca establecer un uso legítimo, legal y seguro en los negocios vinculados con la producción y comercialización de monedas virtuales en Uruguay.

— Juan Sartori (@JuanSartoriUY) August 3, 2021

The bill has been described as “broad,” which local legal experts suggest could actually increase its chances of passing onto the statute books, because it doesn’t change the existing legal structures or any specific legal concepts.

If introduced, the bill will introduce regulation on custody, issuance and trading, but will not extend to digital currency mining, which will continue to be treated as a separate economic activity.

Digital currency assets are defined in the bill as “digital products that use cryptographic encryption to guarantee their ownership and ensure the integrity of transactions.” The bill also introduces a new licensing regime for intermediaries, custodians and digital currency issuers, with new compliance requirements for licensees.

Their counterparts in Colombia have been making similar progress towards a new digital currency bill, with Senator Mauricio Toro last week introducing a bill that hopes to instigate digital currency-friendly rules in the country.

🪙¡Radicamos de nuevo nuestro Proyecto de #PlataformasCripto!

Crearemos una reglamentación integral para transar criptoactivos y:
-Cerrar puerta a mercados negros
-Tener alternativa al sistema bancario
-Garantizar seguridad en transacciones

Léanlo aquí👉🏽https://t.co/1IBI98NH7h pic.twitter.com/zXBu8e1utk

— Mauricio Toro (@MauroToroO) August 3, 2021

The senator said the law is primarily aimed at bringing the black market under control, delivering safer transactions for consumers and businesses, as well as promoting innovation and alternative structures to traditional banking systems.

The bill primarily introduces a series of new registration requirements for domestic and foreign digital currency exchanges operating in the country, as well as instituting a series of new legal disclaimers for digital asset exchanges operating under the licensing scheme.

The moves come at a time of increasing regulation for digital currency sectors in countries across the world.

Watch: CoinGeek Zurich panel, Blockchain Law & Policy