Jazmín García, founder of Nohbek, a BAAS (Blockchain as a Service) platform specializing in Web 3.0 solutions and digital transformation. Recognized for her work as a regulation expert, Jazmín warns: 'In Latin America, we comply out of obligation, not conviction; if there is no law, there are no best practices, which keeps us reactive, not preventive.'
In April 2020, the European Parliament approved the Markets in Crypto-Assets Regulation (MiCA), which came into effect in December 2024. It is the first comprehensive legislation that regulates not only cryptocurrencies but also stablecoins, tokens, exchanges, and issuers of crypto assets.
MiCA requires service providers to register, comply with anti-money laundering rules, and present detailed white papers. One of the most visible cases was Tether (USDT), which did not obtain a license and was removed from European exchanges.
"MiCA marks a before and after. It is clear, operational, and provides legal certainty to all actors. In Latin America, we are far from something similar."
Unlike the European Union, the United States still lacks a single federal law that comprehensively regulates the crypto ecosystem. Instead, it has built a fragmented system in which different agencies address specific aspects:
◽The US Securities and Exchange Commission (SEC) regulates the crypto assets it considers securities, as in the cases of Ripple and Binance.
◽The Commodity Futures Trading Commission (CFTC) oversees assets linked to commodities.
◽The Internal Revenue Service (IRS) treats crypto assets as property for tax purposes, requiring the declaration of gains and losses.
◽The Financial Crimes Enforcement Network (FinCEN) imposes KYC and AML standards on exchange platforms.
◽Companies like Chainalysis support the government in detecting illicit operations through artificial intelligence.
Additionally, some states like Wyoming have taken stronger steps, legally recognizing DAOs and promoting pro-crypto local legislation.
While this institutional framework allows for some degree of functional regulation, the country still faces the challenge of standardizing criteria among agencies and providing greater legal clarity for users, companies, and developers. The lack of a cohesive federal framework creates uncertainty, especially for those looking to operate nationally.
Although the landscape in Latin America is diverse, partial or absent approaches predominate. Some examples:
El Salvador recognized Bitcoin as legal tender in 2021. However, without a robust educational campaign, adoption has been limited.
◽Brazil approved a law in 2023 that regulates technology financial service providers, including crypto.
◽Argentina allows the legal buying and selling of cryptocurrencies, although without specific legislation.
◽Peru and Colombia have bills under debate, with no implementation yet.
◽Bolivia prohibits the use of cryptocurrencies as a means of payment.
◽Ecuador announced a regulation in 2022 that has yet to be revealed.
"We are seeing isolated efforts. But without regional coordination, without minimum standards, and without political will, there is a risk of losing the race for technological leadership."
One of the key points that García highlights is that governments continue to see blockchain solely as synonymous with cryptocurrencies. But the technology has multiple applications such as traceability of agricultural and industrial products, decentralized digital identity systems, transparency in public contracting and social programs, automation of audits and legal processes, and management of digital rights and intellectual property.
"Blockchain is not the enemy. But in many governments, including Mexico's, it is still associated with scams, speculation, or illicit money. This limited view is leaving us out of the future."
Mexico was one of the first countries in Latin America to regulate fintech with the Fintech Law of 2018. However, the framework has fallen short in the face of the speed with which business models based on crypto assets evolve.
"The Fintech Law does not consider DeFi protocols, DAOs, or staking. The only accounting standard, NIF C-22, only applies if used as a means of payment. And for tax purposes, you can declare income from crypto, but not deduct losses. It is a contradictory system."
This mismatch creates what she calls a 'normative divorce' between accounting, tax, and financial laws, forcing companies to navigate a legal maze to operate.
The lack of legal clarity not only affects users. It also drives away investments, discourages developers, and forces Latin American startups to migrate to jurisdictions like Estonia, Portugal, or the United Arab Emirates, where regulation already contemplates decentralized scenarios. 'Without clear rules, talent leaves. They don't want to be in a country where operating can be considered illegal at any moment,' Jazmín adds.
According to the Crypto Ownership Report 2024 by Triple A, Latin America is home to over 55 million people who own crypto assets, making it one of the regions with the highest global adoption. Ignoring this reality not only exposes users but also leaves countries out of the competition for investment, talent, and technological development.
Beyond technical laws, the region requires several factors to enter the game:
◽Involve ecosystem actors in legislative working groups.
◽Generate educational campaigns from the governments.
◽Avoid prohibitive regulations, and instead promote a flexible and pro-innovation framework.
◽Design comprehensive frameworks, not disconnected fiscal or accounting patches.
If Latin America wants to be part of the future of finance, it needs to stop reacting and start building. Because in the new decentralized financial order, regulation is not a barrier: it is a tool to unleash the potential of technology.
