Uruguay's burgeoning blockchain sector faces a critical juncture as the Uruguayan Blockchain Chamber has formally expressed significant concerns to the Superintendency of Financial Services (SSF) regarding the proposed regulatory framework for Virtual Asset Service Providers (VASPs). While acknowledging the Banco Central del Uruguay's (BCU) efforts to bring clarity to the space, the Chamber warns that the current draft risks creating a contradictory, overly broad, and rigid environment that could severely impede innovation and the growth of national projects.
Navigating Contradictory Definitions and Scope
A primary concern highlighted by the Chamber is a potential "normative contradiction" between existing legislation (Ley 20.345, focused on anti-money laundering for financial services) and the new project. This contradiction could grant the BCU generic oversight over all PSAVs, encompassing non-financial activities such as art NFT platforms or ticketing services. Such an expansive scope, the Chamber argues, would subject non-financial activities to inappropriate and burdensome financial regulations. Furthermore, the proposed definition of "financial virtual asset" is deemed "too broad," potentially enmeshing non-financial assets like utility tokens within a heavy regulatory net, thereby stifling small-scale projects and introducing legal uncertainty.
Addressing Regulatory Rigidity and Barriers to Innovation
The Chamber also critiques the proposed "single and rigid authorization" model, which mandates identical requirements for nascent local startups and large international exchanges. This lack of differentiation, particularly regarding high monetary guarantees, is seen as an insurmountable barrier for many domestic ventures. Instead, a gradual, tiered regulatory approach is advocated. Crucially, the absence of a regulatory sandbox—a controlled environment for testing new technologies—is lamented, as it curtails vital experimentation and development. Additional concerns include the applicability of Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) norms to non-custodial platforms (like wallets and decentralized exchanges), and the vague, potentially costly "technological security" obligations.
Disproportionate Impact on Emerging Use Cases
The current regulatory blueprint could disproportionately hinder several burgeoning use cases vital to Uruguay's digital economy. The application of the "Travel Rule" without specific amount distinctions, for example, threatens to inflate costs or even block remittances and cross-border payments. The digital art sector, particularly NFT creators, faces a disproportionate regulatory burden that could render monetization unviable. Similarly, a lack of clarity in token classification impacts blockchain-based ticketing and real estate tokenization initiatives. The Chamber strongly urges a comprehensive review, including an assessment of territoriality criteria, to ensure the regulation fosters, rather than stifles, the vibrant growth of Uruguay's digital asset ecosystem.
