Sobral put it bluntly: rigid rules drive innovation away, and in the end both tax revenue and talent are left worse off—while overseas smugly takes it all in.

Juan Manuel Sobral, Chairman of the Uruguay Blockchain Association, warned that the cryptocurrency regulatory project Uruguay is currently advancing has serious gaps. It not only fails to differentiate the risk levels of different business models, but also sets an admission guarantee of up to $100,000, which is extremely unfriendly to startups. Sobral said that the regulators “do not understand what they are regulating,” overlooking cutting-edge areas such as NFTs and RWA. He is concerned that this rigid regulation will force local innovative companies to seek operating space abroad, leading to losses for Uruguay at the national level in terms of tax revenue and industrial development. (CriptoNoticias)