BeInCrypto complete Latam Crypto Roundup brings Latin America’s most vital information and tendencies. With reporters in Brazil, Mexico, Argentina, and extra, we cowl the newest updates and insights from the area’s crypto scene.
This week’s roundup contains tales on Solana ETF approval in Brazil, Bolivia’s curiosity in metal-backed stablecoins, and extra.
Brazil Approves World’s First Spot Solana-Primarily based ETF
The Brazilian Securities and Trade Fee (CVM) has given the inexperienced mild for the launch of the world’s first spot Solana-based exchange-traded fund (ETF). This product is presently in its pre-operational part, with remaining approval pending from Brazil’s predominant inventory change, B3.
The spot Solana ETF, managed by QR Asset and operated by Vortx, will observe the CME CF Solana Greenback Reference Price. Theodoro Fleury, Chief Funding Officer of QR Asset, expressed enthusiasm concerning the new ETF.
“This ETF reaffirms our commitment to offering quality and diversification to Brazilian investors. We are proud to be global pioneers in this segment, consolidating Brazil’s position as a leading market for regulated investments in crypto assets,” Fleury stated.
Learn extra: Solana ETF Defined: What It Is and How It Works
The ETF launch will combine Solana into mainstream monetary techniques and mark the primary Solana-based product in Brazil. Over the previous few years, the Latam nation has proven a robust curiosity in pioneering monetary merchandise, with B3 enjoying a significant position.
The change has listed a number of crypto ETFs, together with these for Bitcoin and Ethereum, between 2021 and 2022. Most not too long ago, in March 2024, B3 started providing BlackRock’s iShares Bitcoin Belief (IBIT).
Peru Launches New Anti-Cash Laundering Regulation for Crypto Corporations
Beginning August 1, Peru’s cryptocurrency market enters a brand new regulatory period. The Superintendency of Banking, Insurance coverage, and AFPs (SBS) has launched the nation’s first official framework geared toward stopping cash laundering and terrorist financing inside the sector.
This regulation requires all cryptocurrency companies, together with digital pockets suppliers and funding platforms, to observe strict anti-money laundering (AML) measures. The SBS will oversee these entities to make sure they implement a “risk-based approach” to discourage illicit actions.
A key facet of the brand new guidelines includes verifying the identification of transaction beneficiaries. This step goals to stop corrupt funds and different illicit good points from infiltrating the monetary system. The regulation covers all transactions, even these underneath $1,000, with potential for elevated scrutiny sooner or later.
Learn extra: Crypto Regulation: What Are the Advantages and Drawbacks?
Non-compliance with these rules may lead to extreme penalties. Corporations that fail to fulfill the brand new requirements might face hefty fines, the lack of their working licenses, or the elimination of their web sites and apps.
This measure aligns with Suggestion 15 of the Monetary Motion Job Drive (FATF), which urges international locations to implement authorized frameworks for the supervision of digital asset service suppliers (VASPs). Peru’s transfer follows related actions in different Latam international locations, reminiscent of Argentina, the place stricter crypto rules had been applied regardless of preliminary resistance.
Paraguay Dismisses Exodus of Miners Regardless of Increased Electrical energy Charges
Paraguay’s Nationwide Electrical energy Administration (ANDE) has dismissed considerations over an exodus of cryptocurrency mining corporations following a hike in electrical energy charges. The rise, which raised tariffs by as much as 16% for large-scale cryptocurrency miners, sparked fears of corporations fleeing to neighboring international locations like Brazil.
The Paraguayan Chamber of Mining of Digital Property (Capamad) had beforehand warned that many cryptocurrency miners had been contemplating relocating to Brazil because of the rising prices. Capamad prompt that Paraguay may lose its enchantment as a good location for Bitcoin mining.
Nonetheless, Félix Sosa, president of ANDE, refuted these claims, asserting that no mining corporations had left Paraguay. Sosa highlighted a latest contract with a big mining operation, which secured the availability of 6 megawatts (MW) of electrical energy, making certain the continued operation of 72 mining corporations within the nation.
“A technical evaluation is made to verify where to install, where ANDE has power availability for the installation of this type of load,” Felix Sosa defined to ABC.
Learn extra: Is Crypto Mining Worthwhile in 2024?
Sosa additionally revealed that these 72 corporations presently have 391 MW of contracted electrical energy, with a complete potential of 821 MW. He shared that ANDE expects to generate $100 million in income from these contracts. Moreover, 400 MW of latest contracts with mining corporations are pending approval.
In distinction, Jimmy Kim, director of Capamad, famous that the enlargement plans of many cryptocurrency mining corporations now favor Brazil over Paraguay. He pointed to a contract signed by Penguin Group for 400 MW in Brazil, with one other 400 MW within the pipeline.
Regardless of these tensions, ANDE has maintained its stance, arguing that the elevated tariffs will assist cut back losses from unlawful mining actions, which quantity to over $185,000 yearly. The tariff enhance, outlined in Decision 49238 issued on June 26, targets large-scale cryptocurrency miners particularly.
Bolivian President Luis Arce is advocating for the adoption of cryptocurrencies backed by metals, reminiscent of lithium and gold, as a part of a broader technique to strengthen Bolivia’s monetary system. This transfer goals to combine digital property with the nation’s ample mineral sources whereas lowering reliance on the US greenback.
President Arce highlighted that this initiative would promote using metal-backed cryptocurrencies like Tether’s Alloy stablecoin (aUSDT). He famous that the measure is designed to streamline the stream of international forex into Bolivia and strengthen the cost system for worldwide transactions.
“The greater dissemination of cryptoassets backed by gold, lithium, and other technological metals like Alloy (aUSDT) will boost the inflow of foreign currency into the country and deepen the payment system for international purchases,” Arce said.
Learn extra: A Information to the Greatest Stablecoins in 2024
This push follows a latest proposal by Congresswoman Mariela Baldivieso, who launched a invoice within the Bolivian Legislative Meeting to manage Bitcoin. Baldivieso argued that cryptocurrencies may allow Bolivia to conduct transactions and obtain worldwide funds with out relying on conventional fiat currencies.
In June, Bolivia lifted its ban on cryptocurrencies, permitting using “virtual assets” by means of Digital Fee Devices (EPI). The announcement by Edwin Rojas, president of the Central Financial institution of Bolivia, marked a shift within the nation’s monetary insurance policies.
Uruguay Sees Rising Curiosity in Real Estate Offers Utilizing Bitcoin
Uruguay is witnessing a rising development in actual property transactions performed with Bitcoin, signaling a shift in how properties are purchased and bought. Just lately, a property was bought for $500,000 in Bitcoin, facilitated by Banque Heritage as an middleman.
This occasion is showcasing Bitcoin’s potential as a medium of change in actual property. Cryptocurrencies, recognized for difficult conventional monetary techniques, supply a substitute for typical currencies by enabling fast, borderless transfers with out the necessity for banks or different intermediaries.
Native analysts spotlight a number of benefits of utilizing Bitcoin for actual property transactions, together with quicker processes and decreased prices. By reducing out monetary intermediaries, transaction charges lower, and the worldwide market turns into extra accessible, free from the complexities of forex conversions.
Learn extra: How To Put money into Actual-World Crypto Property (RWA)?
Uruguay has shortly embraced using cryptocurrencies in actual property. As of October 1, 2022, a brand new legislation permits shopping for and promoting property with digital currencies. This variation made what was as soon as thought-about a swap into a totally authorized sale, recognizing cryptocurrencies as legitimate cost.
The Common Tax Directorate, which beforehand didn’t settle for cryptocurrencies for actual property transactions, has now welcomed this new method. This positions Uruguay as a pacesetter in bringing digital property into the actual property market. On July 17, 2023, this was clearly demonstrated when a property was bought utilizing Bitcoin, with Banque Heritage and Cryptotrust managing the transaction.
Binance VP for Latam to Communicate at RIW 2024 on BeInCrypto Stage
As Rio Innovation Week 2024 approaches, Guilherme Nazar, Vice President for Latin America at Binance, has been confirmed as a speaker on the BeInCrypto stage. Nazar will deal with the present state of the trade, future prospects, and the trail to reaching the subsequent billion customers.
Nazar can even talk about the significance of buyer focus, schooling, and safety in advancing crypto adoption, significantly in Latam. He famous that Brazil is closely investing in Web3 options, positioning it as a worldwide chief on this space.
“Latin America is a market with great prospects for the digital asset ecosystem, home to three of the top 20 countries in adoption, and there are endless opportunities to develop the local industry, meet users’ needs and educate society. We are determined to work hand in hand with policymakers to define regulations that allow innovation to advance and protect users’ funds,” he stated on taking on administration of the area.
Learn extra: A Calendar of the High Blockchain and Cryptocurrency Occasions in 2024
Alena Afanaseva, CEO of BeInCrypto, and Fabrício Tota, Director of New Business at Mercado Bitcoin, will be a part of Nazar on stage. Afanaseva has turned BeInCrypto into a worldwide crypto information hub with eight million month-to-month guests. Tota, in the meantime, is a key determine in Brazil’s crypto trade.
The BeInCrypto stage at Rio Innovation Week will characteristic names like Agrotoken, B3, and Comissão de Valores Mobiliários (CVM). Different members embody Itaú Unibanco, Bradesco, BTG Pactual, Banco do Brasil, and Microsoft. TecBan, ABCripto, Bitso, Trexx, MIBR, Plataforma Affect, and the Ethereum Brasil neighborhood can even be current.
Because the Latam crypto scene grows, these tales spotlight the area’s rising affect within the world market. Keep tuned for extra updates and insights in subsequent week’s roundup.
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