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    3. Cryptocurrencies Make Their Way in Latin America Amid Regulatory Gaps and Controversies

    Cryptocurrencies Make Their Way in Latin America Amid Regulatory Gaps and Controversies

    By: rootdata|2026/08/12 14:35:50
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    Cryptocurrencies are making their way into the economies of Latin America, whether for investment, sending remittances, protecting against inflation, or making payments; however, their adoption is still not massive and their use remains niche. This report integrates a regional investigation by the Group of American Newspapers (GDA), a network of leading media outlets in Latin America to which LA NACION belongs. The coverage compares the situation of cryptocurrencies in several countries in the region to identify similarities and differences in their regulation, adoption, and the challenges they pose for authorities, markets, and users. The advancement of cryptocurrencies occurs in an uneven regulatory landscape. While some countries have developed specific legal frameworks to oversee crypto assets , others maintain partial regulations or lack comprehensive legislation. At the same time, in most countries, authorities have linked the use of these digital assets to investigations for money laundering, fraud, and other illicit activities, keeping the debate about this industry in the region open. Additionally, although their use is not prohibited, cryptocurrencies do not have the status of legal tender in any country in the region , which leaves their acceptance as a means of payment on a voluntary basis. One of the few exceptions was El Salvador, which in 2021 approved the Bitcoin Law, legislation that granted legal tender status to bitcoin, the world's most popular cryptocurrency. However, as part of the commitments made by the country with the International Monetary Fund (IMF), the regulation was reformed with the aim of this crypto asset ceasing to be legal tender, a step that was finalized in 2025. The Central American country created a National Digital Assets Commission (CNAD) that has among its functions to establish and supervise compliance with regulations and standards applicable to digital assets in El Salvador. In addition to granting licenses and authorizations to companies and platforms related to Digital Assets, protecting consumers and users from fraudulent activities. However, in some markets, barriers of knowledge and technology still persist that hinder wider adoption , as it is necessary to understand the use of digital wallets, exchange platforms, and other unfamiliar mechanisms. Cryptocurrencies are digital currencies in which cryptography is used to secure transactions and the ownership of those participating in exchanges. They are not controlled by any institution, do not exist physically, and do not require intermediaries; only direct users.

    Investment, Payments, and Avoiding Inflation...

    Although cryptocurrencies have gained traction in Latin America in recent years, their adoption is far from widespread. Their use is concentrated in activities such as investment, despite often being considered speculative instruments; sending remittances, as well as protecting against inflation and some commercial transactions. Venezuela is one of the most striking cases. There, cryptocurrencies, especially stablecoins (tied to the value of a currency like the dollar), are gaining ground as an alternative to physical dollars in the face of inflation and the depreciation of the local currency. Although usage is not massive, it is widespread in everyday practice, particularly in the informal economy and remittance sending. In other words, they are used for payments between individuals and for the purchase of goods and services. Their use is more linked to economic necessity and financial survival. Just like in Venezuela, in Argentina, cryptocurrencies tend to be associated with being a store of value and savings due to currency devaluation. Although there is widespread adoption as a financial instrument, their everyday use is still limited. In other markets, such as Brazil, Mexico, and Chile, they have also begun to consolidate as mechanisms for making payments and international transfers, although still in a limited manner and concentrated in certain sectors of the economy. Fábio Plein from Coinbase Brazil stated that stablecoins in Brazil have become a real payment infrastructure. In practice, it is possible to acquire high-value goods, such as real estate and luxury vehicles, as well as e-commerce products and travel, often through platforms that transparently convert to local currency. The Brazilian Association of Crypto Economy (ABCripto) details that this expansion is facilitated by crypto debit cards and payment processors that eliminate volatility risk for merchants. However, structural barriers persist. Plein highlighted that, culturally, many users still view crypto assets as something to save rather than spend, which delays the transition to everyday use. A very similar situation occurs in Mexico, which is in a transitional stage. Although cryptocurrencies have ceased to be an exclusive niche for enthusiasts to integrate into specific sectors of the economy, they still do not constitute a daily payment method used by the majority of the population. Their use is concentrated in some commercial chains, real estate, payment for professional services, as well as in sending remittances and as an investment asset. In Chile, although the market is still small, it is expanding, especially through widely used digital wallets, with which purchases can be made at some stores and services can be paid. Investment alternatives also exist. In other countries, cryptocurrencies continue to be used primarily as investment instruments. In Peru, Costa Rica, and the Dominican Republic, users tend to acquire them with the expectation of obtaining returns or preserving value, although they are also used, to a lesser extent, as a means of payment for acquiring some goods and services. In the Dominican Republic, interest in crypto assets is on the rise and is used for activities such as sending remittances, payments to suppliers, online purchases, and investments. The interactive tool BTC Map, based on OpenStreetMap cartographic data, estimates that the country has 123 businesses that accept bitcoin, in addition to approximately 20 cryptocurrency ATMs. In El Salvador and Colombia, although there is adoption, their use is still limited in everyday transactions, such as purchasing goods and services.

    Unequal Regulation

    As cryptocurrencies gain users, Latin American countries are advancing at different paces in their regulation. Some have specific rules aimed at organizing the sector; others maintain less comprehensive norms or partial regulations that only cover part of the industry. Brazil, Chile, and El Salvador are among the Latin American countries with the most developed regulatory frameworks for cryptocurrencies. In the case of El Salvador, the approval of the Bitcoin Law in 2021 gave rise to a specific institutional ecosystem for these assets, which includes oversight, licensing to operate, and consumer protection. In Brazil, the sector has ceased to operate in legal vacuums. The regulation established guidelines for the provision of services with virtual assets and assigned the Central Bank of Brazil (BCB) the regulation and oversight of Virtual Asset Service Providers. In Chile, those offering services related to the use of crypto, including intermediation or investment advice, are regulated by the Fintech Law, one of the strongest regulatory frameworks in the region. The law requires the registration and authorization of companies to carry out these activities, after meeting a series of requirements related to information, corporate governance, minimum capital, risk management, and operational capabilities, as applicable. The Commission for the Financial Market of Chile, a decentralized public service of a technical nature, supervises these entities, establishing minimum standards of security and operation. In the specific case of digital currencies, it states that their value must be "directly determinable and backed based on money, national or foreign currency, or obligations payable in those currencies," according to the standards of the Central Bank. In other nations, there are partial regulations, but they do not cover the entire ecosystem. Colombia lacks a specific law to regulate crypto assets, so the sector operates under a set of circulars, concepts, and guidelines issued by supervisory bodies. The Bank of the Republic of Colombia has reiterated in its statements that cryptocurrencies do not constitute legal tender in the national territory, are not considered foreign exchange for the fulfillment of exchange obligations, nor do they have liberating power to extinguish debts. In Argentina, they operate in a fragmented regulatory environment. Although there is no comprehensive law regulating them, in recent years various agencies have advanced with partial norms that attempt to organize the ecosystem. Last year, sources close to the Central Bank of Argentina (BCRA) confirmed to the newspaper La Nación that they were analyzing a measure that would allow traditional banks to operate cryptocurrencies. Years ago, three Argentine banks had taken the lead, offering the purchase, sale, and custody of cryptocurrencies, a measure that was quickly halted by the issuing authority. In Peru, there is also no comprehensive law addressing cryptocurrencies. The regulation is partial and mainly focused on issues such as money laundering and user protection. In the Peruvian Congress, there has been a bill for the commercialization of crypto assets for a few years, but the report was returned to the Economy Commission for proper study, according to the newspaper El Comercio. Regarding tax treatment, there is also no specific law. However, the tax administration of Peru has the authority to assume profits from operations with cryptocurrencies within the general framework of the Income Tax. In Mexico, the legal framework regarding virtual assets consists of regulation focused on preventing money laundering and protecting the traditional financial system, so there is no absolute regulatory vacuum. The Service

    The Mexican Tax Administration (SAT) classifies cryptocurrency exchange as a vulnerable activity, and the Anti-Money Laundering Law (LFPIORPI) stipulates that virtual asset service providers must comply with customer identification obligations and report suspicious transactions. In Venezuela, although there is a specific legal framework, it is centralized and controlled by the state. The regulation established the National Superintendency of Cryptoassets (Sunacrip) as the governing body of the sector. In Costa Rica, a regulation was approved that will require cryptocurrency service providers and those conducting activities related to these virtual assets to register with the supervisor, identify their clients, and apply strict anti-money laundering controls. In other countries, such as the Dominican Republic, there is no specific legislation. Due to the absence of a particular legal framework, if a cryptocurrency is accepted as a form of commercial payment, the user does so at their own risk. Giuliano Simó Marra, general manager of BitcoinRD, a company that has operated a network of cryptocurrency ATMs for over 12 years and is the first exchange platform in the country, stated that the cryptocurrency market is quite limited due to the lack of regulation, which hinders its formalization.

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    This content is provided for general informational purposes only and doesn't constitute financial, investment, legal, or tax advice. Any events, rewards, online promotions, or related information mentioned herein should not be considered a recommendation, solicitation, or invitation to purchase, sell, trade, or otherwise deal in any crypto assets. Crypto assets are highly volatile and may result in loss. The availability of WEEX services, products, and related events may vary by region. You are responsible for ensuring that your participation is in accordance with applicable local laws and regulations.

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    Contents

    Investment, Payments, and Avoiding Inflation...
    Unequal Regulation
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