TheTokener recently reported about the hardships South America’s crypto community is facing. This region of the world is desperately seeking for certain regulations. There will be a lot of potential for Fintech companies and crypto-related businesses in South America as people are beginning to realize new opportunities that might arise from these innovations. In the midst of confusing banks and governments actions towards crypto space, Uruguay might bring new regulations that could serve as a spark for other countries to regulate their crypto space, creating one fully regulated crypto market consisting of all South American countries.
New Uruguay Regulations
As BNamericas reports, fintech chamber in Uruguay is about to form a special committee which will have a task to propose certain cryptocurrency regulations in the country. This committee should work with the authorities in the area of laws in order to find the best solution for growing crypto community.
Sebastian Olivera, Uruguay fintech chamber founder, and their former president stated that new cryptocurrency drafts will need to pass through established institutional channels. Olivera also said that they realize that there cannot be any activity developed outside of the reach of the regulatory sphere, especially regarding the financial system. Because of that, they are focusing on collaborating with the regulator and all other stakeholders involved.
Olivera also added that their focus regarding regulations is both towards helping future innovations and also fighting against financial assets misuses. He believes that with greater transparency brought up by new regulations; these issues will become easier to tackle.
Uruguay’s fintech community dreams of Uruguay becoming the “crypto-valley” of Latin America, Olivera noted. It looks as Uruguay is determined to bring regulations which will enable fintech and blockchain businesses to reach their full potential.
Latin America in the Midst of Regulations
Earlier this year professors from US MIT University urged countries in the region to regulate their crypto sphere, as BNamericas also reports. These are interesting news as they could indicate the potential higher involvement of US in regards to crypto space. Future regulations in the US will surely be needed and they might look to other America's countries in order to gain valuable insight from their crypto regulations.
Chile is also bringing new regulations that will bring much-needed clarity between cryptocurrency-banks-government relations, while Mexico has already brought new fintech and crypto regulations. This trend should continue throughout the continent and it will be interesting to follow future developments.
The Crypto community needs an environment that can bring much-needed stability. This is essential for future fintech and blockchain businesses. The job of the crypto community is to ensure that general public and government officials have a clear picture about the possible implementations of the technology. In that way, they could realize that these innovations could bring positive changes both for the people and for the governments. If governments realize this, then we can expect future crypto friendly regulations through the continent.
What do you think about new regulations in South America? Will they bring much stability to the region? Share your opinion in the comments.