Uruguay’s New Crypto Regulation Sparks Concerns for Startups

A proposed draft regulation in Uruguay is generating significant unease within the country’s crypto industry, with experts raising concerns about potential stifling of innovation. The draft law aims to grant the Central Bank of Uruguay (BCU) authority over all virtual-asset service providers, requiring them to undergo a single authorization process. However, ambiguity surrounding the definition of “financial virtual asset” under the draft is fueling anxiety among startups and industry players alike.