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

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

What is crypto exchange?

A cryptocurrency exchange is considered to be a platform for digital means trading. If businesspersons or others intend to participate in cryptographic currency trading, they need to do it through exchange, because now quite a few conventional investment firms offer digital money exchange operations. There’re 3 main types of cryptoexchangers – centralized, mixed and decentralized....

Company registration in Columbia

In fact, Colombia is not offshore, however, this jurisdiction has a large number of free zones that have zero tax rates. This privilege during the first 2 years can be used by small businesses with fewer than 50 employees and a turnover of less than $ 1.3 million per year. Most firms pay tax at...

European Blockchain Services Infrastructure: main points

European Blockchain Services Infrastructure: main points The EU is on its way to introducing its European blockchain services infrastructure (in short, EBSΙ), to publicly operated sector which should shortly interact with privately owned facilities. The EBSΙ represents a P2P system of interrelated nodes operating a blockchain-grounded services system. Nodes will be run by the EBP...

Ethereum Merge: important points

Finally, Ethereum Merge is complete. We want to swiftly dispel some of the rumours and false news that have surfaced about the Merge in this post. Our specialists are the people to contact if you have any questions. Merge is A technological update called the Merge will convert Ethereum’s current proof-of-work system to a proof-of-stake...

Legal Opinion for your company in the United Kingdom

Legal opinion is a verbal or written expert interpretation of the law regarding a specific circumstance. Basically, it’s a skilled lawyer’s evaluation of a particular legal situation you encounter presented in the form of a document. A letter encompasses conclusions and suggestions. This article will help you to sort out all the nuances of an...

HACCP Essence & Features

It is a globally recognized method for managing food industry risks. It provides customers and society with confidence that food safety program is properly managed. HACCP is a set of rules for organizing production activities based on 7 principles, which guarantees the output of a high-quality and safe product for the consumer. To achieve the...

Discover our services

The international company Eternity Law International provides professional services in the field of international consulting, auditing services, legal and tax services.

Ready-made companies for sale

Companies with a bank account around the world

Banks for sale

Established Banks for sale

Ready-made licenses for sale

Forex, cryptocurrencies, gambling, EMI, PSP, SVF, MSO, DLT

Licensing

Forex licenses, cryptocurrencies, gambling, EMI, PSP, SVF, MSO, DLT

Offshore company registration

Expert advice on the acquisition of an offshore company

Open a bank account

Open bank accounts in more than 120 banks around the world
Fill the blank:

Zurich

Dreikonigstrasse, 31A, Stockerhof
+41 435 50 73 23

Kyiv

Baseina street, 7
+38 094 712 03 54

London

Grosvenor Gardens, 52
+44 203 868 34 37

Washington

1629 K St. Suite 300 N.W.
+1 (888) 647 05 40 Toll Free

Vilnius

Gediminas Avenue, 44A
+370 52 11 14 32

Tallinn

Kesklinna linnaosa, Tuukri 19
+372 880 41 85

Edinburgh

Lochrin Square, 1
+44 203 868 34 37

Nicosia

Jacovides Tower, 5 floor
+371 665 550 51

Riga

Esplanade, 7 floor
+371 665 550 51

Hong Kong

18 Harbour Road, 35/F, Central Plaza, Wanchai
800938622 Toll Free

Singapore

Level 42, Suntec Tower Three, 8 Temasek Boulevard
+6531594300

Sydney

20 Martin Place
+61 2 888 00 365

Porto

2609 Avenida da Boavista
+351 800 500 206 Toll Free

Tbilisi

Revaz Tabukashvili Str., N 45, area N 7
+995706070360