BeInCrypto’s comprehensive Latin American cryptocurrency roundup brings you the most important news and trends from Latin America. We work with journalists from Brazil, Mexico, Argentina and more to report on the latest developments and insights from the region’s cryptocurrency industry.
News this week includes Brazil’s approval of the Solana ETF, Bolivia’s interest in metal-backed stablecoins, and more.
Brazil approves world’s first Solana-based spot ETF
The Brazilian Securities and Exchange Commission (CVM) has approved the launch of the world’s first Solana-based cash exchange-traded fund (ETF). The product is currently in the pre-operational stage, awaiting final approval from B3, Brazil’s main stock exchange.
The Solana Spot ETF, managed by QR Assets and operated by Vortex, will track the CME CF Solana Dollar benchmark rate. Teodoro Fleury, chief investment officer of QR Asset, expressed excitement about the new ETF.
“This ETF reaffirms our commitment to providing quality and diversified investments to Brazilian investors. As a global pioneer in this field, we are proud to solidify Brazil’s position as a leading market for regulated investment in crypto assets,” said Fleury.
Learn more: Solana ETF explained: What it is and how it works
The launch of the ETF will bring Solana into the mainstream financial system and mark the first Solana-based product in Brazil. In the past few years, Latin American countries have shown great interest in developing financial products, and B3 has played an important role.
The exchange has listed multiple cryptocurrency ETFs in 2021 and 2022, including Bitcoin and Ethereum. Most recently, in March 2024, B3 began offering Blackrock’s iShares Bitcoin Trust (IBIT).
Peru imposes new anti-money laundering regulations on cryptocurrency companies
Starting August 1, Peru’s cryptocurrency market has entered a new regulatory era. Peru’s Superintendency of Banks and Insurance (SBS) has launched the country’s first official framework aimed at preventing money laundering and terrorist financing in the cryptocurrency industry.
The regulation requires all cryptocurrency businesses, including digital wallet providers and investment platforms, to comply with strict anti-money laundering (AML) measures. SBS will monitor these businesses to ensure they implement a “risk-based approach”…
Key to the new rules is verifying the identity of the recipient of the transaction. These measures are intended to prevent corrupt funds and other illicit proceeds from penetrating the financial system. These regulations apply to all transactions, including those under $1,000, and may result in increased scrutiny in the future.
Learn more: Cryptocurrency Regulation: What Are the Pros and Cons?
Failure to comply with these regulations may result in severe penalties. Businesses that fail to meet the new standards could face hefty fines, have their operating licenses revoked, or have their websites and apps removed.
The measure is in line with Financial Action Task Force (FATF) Recommendation 15, which calls on countries to implement a legal framework for regulating virtual asset service providers (VASPs). Peru’s move follows similar moves by other Latin American countries, including Argentina, which implemented stricter cryptocurrency regulations despite initial resistance.
Paraguay blocks miners from leaving despite rising electricity prices
Paraguay’s National Electricity Authority (ANDE) has dismissed concerns that rising electricity prices are leading to an exodus of cryptocurrency miners. The increase raises tariffs for large cryptocurrency miners by up to 16%, raising concerns that companies will flee to neighboring countries such as Brazil.
The Paraguay Digital Asset Mining Association (Capamad) previously warned that many cryptocurrency miners are considering moving to Brazil due to rising costs. Capamader said Paraguay could lose its appeal as a favorable location for Bitcoin mining.
However, ANDE chief Felix Sosa refuted these claims and insisted that no mining companies have left Paraguay. Sosa emphasized that the company recently signed a contract with a large mining company to guarantee the supply …
On the other hand, Kapamad director Jimmy Kim noted that many cryptocurrency mining companies’ expansion plans are currently geared towards Brazil rather than Paraguay. He pointed out that Penguin Group has signed a contract for 400 MW in Brazil, and another 400 MW contract is in preparation.
Despite these tensions, ANDE maintains its position that higher tariffs will help reduce losses from illegal mining activities, which amount to $185,000 per year. The tariff increase outlined in Resolution 49238, issued on June 26, specifically targets large cryptocurrency miners.
Bolivian President Luis Arce supports the introduction of cryptocurrencies backed by metals such as lithium and gold as part of a broader strategy to strengthen the country’s financial system. The move aims to integrate digital assets with Bolivia’s rich mineral resources while reducing reliance on the U.S. dollar.
The president of Arce emphasized that the plan will promote the use of metal-backed cryptocurrencies such as Tether’s Aloy stablecoin (aUSDT). He pointed out that these measures are aimed at simplifying the flow of foreign currency into Bolivia and strengthening the payment system for international transactions.
“Growth adoption of crypto-assets backed by other technical metals such as gold, lithium and alloys (aUSDT) could drive FX inflows and strengthen payment systems for international purchases.” explain Arce is explain.
Learn more: Guide to the Best Stablecoins in 2024
The move follows a proposal by Representative Mariela Valdivieso, who recently introduced a bill to regulate Bitcoin in the Bolivian Legislative Assembly. Valdivieso believes that cryptocurrencies will allow Bolivia to conduct transactions and receive international payments without relying on traditional fiat currencies.
Bolivia lifted its ban on cryptocurrencies in June and allowed the use of “virtual assets” through electronic payment instruments (EPI). The announcement by Bolivia’s central bank governor Edwin Rojas marks a change in the country’s financial policy.
Uruguay: Increased interest in using Bitcoin for real estate transactions
Real estate transactions using Bitcoin are on the rise in Uruguay, signaling a change in the way real estate is sold. Recently, there was a case where Banque Heritage used Bitcoin as an intermediary to purchase a property for $500,000.
This incident demonstrates the potential of Bitcoin as a medium of real estate transactions. Cryptocurrencies are known to challenge the traditional financial system, providing an alternative to traditional currencies by allowing fast, borderless transfers of funds without the need for banks or other intermediaries.
Local analysts highlight that using Bitcoin for real estate transactions has several advantages, including faster processing and lower costs. Eliminating financial intermediaries reduces transaction fees and allows for easier access to global markets without complex currency exchanges.
Learn more: How to Invest in Real Crypto Assets (RWA)?
Uruguay has been quick to embrace the use of cryptocurrencies in real estate. As of October 1, 2022, the new law allows the use of digital currencies to buy and sell real estate. The change transforms what was once considered a swap into a fully legal buying and selling, recognizing cryptocurrencies as a valid form of payment.
Even the IRS, which previously did not allow the use of cryptocurrencies in real estate transactions, now welcomes the new approach. This makes Uruguay a leader in bringing digital assets to the real estate market. This can be seen clearly in the case of the sale of real estate using Bitcoin on July 17, 2023, which was managed by VANK Heritage and CryptoTrust.
Binance’s Vice President of Latin America will speak on the BeInCrypto stage at RIW 2024
As Rio Innovation Week 2024 approaches, Guilherme Nazar, Vice President of Binance Latin America, has been confirmed as a speaker on the BeInCrypto stage. Nazar will introduce the current status of the industry, future prospects and the path to reach the next billion users.
Nazar will also discuss the importance of customer centricity, education and security in driving cryptocurrency adoption, particularly in Latin America. He noted that Brazil is investing heavily in Web3 solutions and positioning itself as a global leader in this field.
“Latin America is a very promising digital asset ecosystem market, with 3 of the top 20 countries in cryptocurrency adoption. There are endless opportunities to develop local industries, meet user needs, and educate society.” When talking about his role On the Asia Pacific leader’s decision, he said: “I look forward to working with policymakers to develop regulations that promote innovation and protect user funds. “
Learn More: 2024 Calendar of Major Blockchain and Cryptocurrency Events
Nazar will be joined on stage by BeInCrypto CEO Alena Afanasheva and Mercado Bitcoin’s new business director Fabricio Tota. Afanaseva has grown BeInCrypto into a global cryptocurrency news hub with 8 million visitors per month. Meanwhile, Tota is a key figure in Brazil’s cryptocurrency industry.
AgroToken, B3, CVM (Comissão de Valores Mobiliários) and others plan to participate in the BeInCrypto stage of Rio Innovation Week. In addition, Itau Unibanco, Bradesco, BTG Factual, Banco do Brasil and Microsoft are also involved. Additionally, Techban, ABCrypto, Bitso, Trex, MIBR, Plataforma Impact and the Ethereum Brazilian community will also participate.
This example shows that as the cryptocurrency industry in Latin America grows, so does Latin America’s influence in global markets. Stay tuned for more updates and insights next week.
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In addition, part of the content is the AI translated English version of BeInCrypto articles.
