Latam crypto license

Developing countries in Latin America are gradually becoming an attractive place to launch a crypto project for many investors. The development of blockchain technologies, interest in cryptocurrencies, access to inexpensive energy, lenient regulatory requirements in certain countries, a favorable legal environment, and in some countries straightforward conditions for business registration and obtaining licenses for cryptocurrency transactions are encouraging the influx of investments into Latin American jurisdictions.

Regulatory Approval for Crypto Activities in Latin America

There is a diverse approach to regulating cryptocurrencies in the region. Legislation on digital currencies in Latin America significantly varies from country to country. Bolivia and Ecuador currently enforce strict rules, including potential imprisonment, for the use of cryptocurrencies and the operation of cryptocurrency exchanges. However, the legal authorization for cryptocurrency in other countries of Latin America is more lenient. In El Salvador, Bitcoin is recognized as legal tender. In Argentina and Chile, cryptocurrencies are permitted for retail transactions. Local residents actively use digital assets as an alternative tool for savings and cross-border crypto transactions. Experts from SBSB Fintech Lawyers recommend thoroughly studying the rules and legal documents for cryptocurrency transactions in each jurisdiction.

Suitability of Cryptocurrency License in Latin America

Due to the limited access to banking services for a significant portion of Latin American residents and hyperinflation issues, many prefer to store their savings in digital assets. Chile stands out as an excellent choice for launching cryptocurrency exchanges. DeFi platforms for cryptocurrency operations are popular in the region. There is an active trend of cryptocurrency liberalization in Argentina, with the government permitting the use of Bitcoin for tax payments.

If your target market is in Latin America, specialists from SBSB Fintech Lawyers will assist you in selecting the most suitable jurisdiction for registering your project and obtaining a license for cryptocurrency payments.

License for Cryptocurrency Transactions in Latin America — Regulatory

If you plan to launch a cryptocurrency project in Latin America, familiarize yourself with the specifics of the following jurisdictions and approaches to issuing regulatory licenses for cryptocurrencies:

Argentina 

According to official statements from the director of the National Securities Commission, Argentina has 10 million crypto-asset accounts. By a resolution of the Argentine government, crypto exchanges must monthly report transaction data. Such control measures are believed to help address money laundering issues. Since 2022, various regions in Argentina have allowed the acceptance of cryptocurrency for tax payments. In 2023, Javier Milei, a libertarian and Bitcoin advocate, assumed the presidency of the country. He plans to legalize cryptocurrency activities and payments, indicating a positive stance towards the digital asset industry in Argentina. Financial institutions are working on changes to the AML law, focusing on user protection and creating a transparent market for companies providing cryptocurrency services.

Brazil

At the end of 2022, the country approved a cryptocurrency bill and began issuing official licenses for cryptocurrency services. Major players in the crypto market, such as Binance and Crypto.com, operate in Brazil. Some Brazilian legislative acts aim to ensure that market participants comply with anti-money laundering laws. This is expected to make the cryptocurrency industry in the country transparent and safe for all users and service-providing organizations.

El Salvador

In El Salvador, where Bitcoin is recognized as legal tender, companies can obtain licenses for cryptocurrency transactions, allowing them to provide legal services. Once granted permission, an organization can offer B2B and B2C services.

Panama

The country is actively making changes to its financial legislation, adapting the regulatory framework to innovations in the fintech sector. Cryptocurrency projects enjoy tax benefits, and some companies leverage blockchain technology. Panama is considered a promising and crypto-friendly jurisdiction.

Venezuela

P2P services for buying and selling crypto assets, launched by the Bitfinex exchange, operate here. Cryptocurrency ATMs are installed in major cities, and BTC cafes are in operation. Venezuelans use cryptocurrency for international transfers and as a means of payment in stores.

Colombia

Colombia is gradually legalizing the crypto sphere. The cryptocurrency sector is actively developing due to access to cheap energy resources. Bitcoin is traded here, and cryptocurrency service providers operate ATMs in major cities. The Financial Information and Analysis Unit of Colombia obliges crypto exchanges to report user transactions, but this does not affect their quantity. For several years, the country has had “sandboxes” for cryptocurrencies, allowing crypto startups to legally provide services and interact with banks.

Mexico

One of the first Latin American countries to officially regulate platforms for cryptocurrency operations and accept cryptocurrency regulation documents. In the Law on the Regulation of the Activities of Companies in the Financial Technology Sector, cryptocurrencies are considered virtual assets, and norms regarding compliance with AML policies apply to crypto service providers. The legislative act establishes requirements for company registration, documents for cryptocurrency transactions, and reporting. Cryptocurrency exchanges can operate as financial organizations with mandatory cryptocurrency permissions while complying with AML requirements.

Chile

The Financial Market Commission regulates cryptocurrency exchanges and cryptocurrency storage service providers. Legal documents for cryptocurrency companies are in effect in Chile. In 2023, the Law on Financial Technologies came into force, providing a legal definition of fintech service providers and virtual assets such as cryptocurrencies. According to forecasts, the creation of a legislative framework for regulation will attract investments, and the number of cryptocurrency companies will more than double.

Peru

According to the decree of the president of Peru, all crypto exchanges must comply with AML rules, and VASPs must undergo registration with the Financial Intelligence Unit. The regulatory act governs the activities of online platforms for exchanging cryptocurrencies and fintech companies. The development of clear regulatory requirements for the regulation of digital assets and their gradual implementation should create a transparent system and ensure the safety of services for users.

Cost of Latin American Cryptocurrency Permit

The cost of obtaining a license for digital currency operations in Latin America depends on various factors, including the project itself, the services offered by the organization, the chosen country for registration, and the requirements of regulatory authorities. Therefore, each project is individually assessed.

How to Obtain Latin American Cryptocurrency Regulatory License

The procedure for obtaining a crypto permit in Latin America varies depending on the specific country, the cryptocurrency status, and regulatory requirements. If you are planning to launch a crypto project in this region, contact the SBSB Fintech Lawyers team! Our experts specialize in turnkey licensing, from choosing the optimal jurisdiction to preparing the document package for obtaining a Latam digital currency license to post-launch support. We offer each client an individual solution tailored to the specifics of their project.