Eternity Law International News Legal regulation of operations with cryptocurrencies in Latin America

Legal regulation of operations with cryptocurrencies in Latin America

Published:
June 26, 2018
Share it:

Regulation of operations with cryptocurrencies in Latin America has been popular for a long time. Three years ago, the report of the State Treasury showed an increase in such transactions in the amount of 510%. The most impressive growth was recorded in 2016 – $ 50 billion.

The prospect of business development using digital money is primarily connected with the unstable political and economic situation in a lot of countries. For leading experts, this indicator looked questionable, because the crisis often stops the development of innovation, business, etc. In Latin America, the number of Internet users is less than in other developed countries, but almost all of them successfully practice electronic costs.

The development of the cryptocurrency used popular social networks Facebook, Twitter and WhatsApp. Argentina and Brazil set records for visiting social networks. Over the past three years, Latin Americans have demonstrated their desire for freedom, web technologies and electronic payments.

HISTORY OF DEVELOPMENT OF CRYPTOCURRENCY BUSINESS

The interest about Bitcoin arose due to the steady position of the President of Argentina, Mauricio Macri, who was interested in the development of a new financial direction, and holding the post of a measure of Buenos Aires, and held the first Bitcoin-Forum in Latin America. Following Makri, local politicians became interested in cryptocurrency, which brought operations with digital money to a new level.

We propose to more detailed examine the state of the cryptocurrency business in every country in Latin America.

Venezuela is a state that in 2016 the International Monetary Fund predicted an inflation rate of over 700%, in 2017 the figure reached 1600%. Inflation has raised the popularity of Bitcoin, so the number of transactions has increased.

The popular platform LocalBitcoins, making cryptocurrency transactions, for the first time reached a figure of 14.2 million dollars. The number of users of electronic money in 2015 compared to 2014 was more than 100%. Despite such popularity in Venezuela, Bitcoin is considered private property, and not a monetary unit.

Argentina is a leader in development of the digital currency market. The Central Bank reported about possible risks of developing the cryptocurrency market as early as 2014. However, in 2014, Buenos Aires stated the one of the first city in which one of the world’s most famous Bitex.la exchanges started operating.

In 2015, President Mauricio Macri came to power, who was not afraid of innovation in his actions. The policy of the state helped stabilize firms that work with digital money. In 2016, Uber signed an agreement with Xapo, which allowed paying for taxi services using Bitcoin.

The legislation of Argentina does not recognize the cryptocurrency as a national currency, but this does not prevent it from perceiving it as cash. Thus, the Civil code allows to consider digital money as a commodity.

Unfortunately, not all Latin American countries have made such a breakthrough in the development of the cryptocurrency business. The Brazilian Federal Tax Service to adjust the taxation of transactions involving digital currencies equates electronic money to financial assets.

The Colombian Central Bank officially stated that digital money cannot be a legal tender. In Bolivia and Ecuador, operations with cryptocurrency are strictly prohibited by the current legislation. The governments of the above-mentioned countries are not ready to take measures for the development of the cryptocurrency business in the territory of their states.

Eternity Law International will help regulate companies involved in activities related to cryptocurrencies in Latin America. Call to find out the details of the process.

You could be interested

Compliance officer services

A group of steadfast guardians of financial integrity stay steadfast in the complex and constantly changing world of modern finance, where innovation regularly collides with illegal activity. These frequently unappreciated leaders, who go by the title of MLROs (Money Laundering Reporting Officers), play a crucial, if frequently unnoticed, role in fintech initiatives and cryptocurrency businesses....

Cryptocurrency exchange company in Cyprus

Cypriot state authorities have been constantly bettering Blockchain legislation, making the country a first-choice hub for investors, Defi startups, and cryptocurrency exchange companies in Cyprus. The circulation of non-fiat currencies and e-funds is under the remit of the central banking institution, and the trading politics are set up by the SEC.  Overview of Cypriot legal...

The best electronic wallet

The best electronic wallet is quite a debatable issue in 2020. There are plenty of various options available on Internet sites, but there are not so many services worthy of attention in terms of total conditions. The issue of election can be solved as follows: Finding an e-wallet by trial, but it is fraught with...

New steps in the development of the EBSI

Recently, a series of new steps in the development of the EBSI was implemented by the EBP. EBSI is a joint initiative of EBP, consisting of 29 states and Commission which represents a system of blοckchain nodes across the EU, being in full respect of European values and regulation. The right to take part for service providers...

The guide for starting a business in the Czech Republic

Here is a brief guide to help you make your selection and realize all benefits of running a business in the Czech Republic. Reasons to choose the Czech Republic In comparison to its western European competitors, the Czech Republic provides a stable economy with excellent infrastructure, a knowledgeable and trustworthy labour force, and cheaper wages...

Subsidiary vs. Branch Office vs. Representative Office in Hong Kong: Ultimate Guide

Typically, the goal of entering Hong Kong is not to see if the market works. International investors are accustomed to the business environment, the regulations are unambiguous, and they are consistently enforced. The more pragmatic choice is how a foreign company should conduct its local operations. Many businesses treat this decision as a technical step...

Related posts

Nevis Gaming License

Nevis Gaming License is regarded by market participants as alternative to other regulatory models, including Curacao Gambling License and Malta Gaming License. At the same time, Gambling License in Nevis represents independent legal framework, structured as separate model of regulatory control and primarily focused on online gaming activities and international operators. Nevis is autonomous jurisdiction...

Opening a business in Turkey

Turkey occupies a liminal position between Europe and Asia, making it a pivotal trade and investment crossroads. A dynamic economy and a huge local market draw entrepreneurs from around the world to the country. Understanding the local legal and financial landscape is the first step for those looking for opening a business in turkey. This...

GmbH vs UG: Credibility Premium vs Capital Efficiency for Early-Stage Teams

This is where the rubber meets the road for founders in Germany who are ready to incorporate their first company. They must choose between two very popular modes. GmbH or UG are both limited liability companies under German law that offer both forms of personal protection for shareholders and work within somewhat similar statutory frameworks....

Liquidation of companies in Cyprus

Key components in sustaining the attractiveness of the island in question as a nation for businesses include the tax system, EU membership, and corporate legislation. Termination is the last resort for a firm sometimes. It is crucial that in such a process, members of the board, investors, and advisers have exposure. The paper gives simple...

From Share Purchase Agreements to Smart Contracts: Redefining Legal Frameworks

The world of corporate deals has always had its drama. Negotiations, long documents, endless edits, lawyers from both sides who spend weeks agreeing on every comma in the Share Purchase Agreement. But imagine a completely different picture: instead of a ton of tribulations on the way to perfection, there are a few lines of code...

Argentina Corporate Tax Explained

To investors and entrepreneurs eyeing Argentina, navigating the country’s corporate taxation sphere isn’t just a bureaucratic hassle; it’s a key step to building a viable and compliant business there. The fiscal regulations are not perfectly committed, but this region is rich in detailed tax laws that are quite well crafted towards control and digital verification....

Discover our services

Eternity Law International is an international legal and business advisory company. We support businesses, entrepreneurs and investors on complex legal, regulatory and corporate matters across international markets. Our multidisciplinary approach combines strategic insight with practical expertise to help clients structure, grow and operate their businesses with confidence

Fill the blank: