The Uruguay Blockchain Chamber has criticized a regulatory project aimed at regulating domestic virtual asset services (PSAV).
According to a recent statement, The proposed regulations could be very strict It is unknown to small businesses and creators of cryptocurrency projects.
In that document, this group shows that the protagonists of space “need to have clear and fair rules, and excessive remission of analogy as an integrated tool is observed.”
Plus, they explain it Short terms given to respond to public consultations prevent deep analysis Regarding “the scope, impact, legality, convenience of various proposed and/or already effective.”
In this sense, the camera warns A very broad definition of financial virtual assets“which could create legal and operational uncertainty,” and even cover assets that are not intended to have economic characteristics such as utility tokens – digital devices that allow access to products or services within a particular platform, and certain NFTs (non-easy tokens) with functional use.
As per the provisions of the document, this amplitude could impose “overrelationship requirements for compliance with non-financial projects,” which would thwart local innovation.
Another questioned aspect is the unique and strict approval of all financial asset services (PSAV) providers that do not distinguish between the size of the company and the amount of transactions.
The Chamber of Commerce warns that this can “make operations unfeasible” for small businesses by requiring high financial guarantees, and instead proposes progressive regulations that will strengthen “as the company grows, as is the experience of Uruguay’s payment system.”
In addition, The lack of space that can be considered a regulatory sandbox is a factor that has been shown to be problematic.. The entity states that this “prevents entrepreneurs from implementing low-risk control pilots,” which will affect the development of new technology and “controlled, constitutionally protected principles of equality.”
Regulations and challenges for digital creators
Meanwhile, the application of Prevention Regulations for Money Laundering and Terrorist Financing (AML/CFT) to non-integrated platforms such as wallets and decentralized exchanges is a question «I know your outfit » (KYC) For each user ».
Therefore, this document provides that this requirement can disproportionately affect non-financial service providers as digital artists and creators of NFTs, and requires them to comply with rules that do not conform to the nature of their activities and risk the economic viability of the project.
Finally, the group proposes that the PSAV Regulations project incorporate territorial standards to define when suppliers will be subject to Uruguay’s regulations, and proposes more flexible rules for entities operating only outside of Uruguay.
meanwhile, Financial experts also warn of ambiguity in the project. As reported by Cryptonotics, Dr. Juan Diana Romero said that the initiative constitutes advances in formalization of the sector, but incorporates unclear concepts that complicate its interpretation and could create regulatory gaps.
Romero’s analysis shows that although theoretically correct, the distinction between financial and non-financial assets is not well defined, which could lead to the need for regulatory arbitration and future revisions.