Latin America still deals with cryptocurrency-related crime Not ready to take on the fraud landscape, according to a recent report published by Washington, DC-based think tank Global Financial Integrity (GFI). The document states that cryptocurrency regulation has failed to scale with the adoption of these new technologies, and governments often fail to detect and punish cryptocurrency-related crimes. says.
GFI: Latin America Remains Vulnerable to Crypto-Related Crime
Cryptocurrency regulation has failed to develop to par. This is one of the conclusions found in a report titled “Cryptocurrencies: A Financial Crime Risk within Latin America and the Caribbean,” published on November 14th.
A report produced by Global Financial Integrity, a Washington, DC-based financial think tank, focused on countries such as Argentina that are more likely to adopt cryptocurrencies. We explored the development of legal cryptocurrencies in Latin America and the Caribbean. Brazil, Colombia, El Salvador, Mexico.
The report found some holes in some of the regulations in these countries that allow criminals to use virtual currencies to commit money laundering crimes, but authorities may not be detected by Also, given that cryptocurrency usage in Latam has followed different trends than other regions, some of these countries have adopted crypto-specific legislation to address more than just cryptocurrency taxation. Regulation is still lacking, the study said.
Policy Recommendations
Research shows that understanding cryptocurrencies as a new asset class is essential for these countries. is. Based on the needs of each country in Central and South America, studies were conducted to establish effective regulations. Promoting campaigns to educate users and investors about cryptocurrencies and the risks that users and investors may face when using these new currencies is another tool available to governments.
However, one of the most important measures these governments must apply, according to the report, is her KYC/AML (Know Your Customer/Anti-Money Laundering) protocol between service providers. is related to the implementation of Helps identify potential threats.
Similarly, adoption of the recommendations of international bodies such as the Financial Action Task Force (FATF), along with interconnection of these bodies, could lead to cooperation and prosecution of suspects. Exchanging data is recommended. Criminal case.
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