Based on materials from the site - By Cointribune EN

While cryptocurrencies, smart contracts, and decentralized applications are becoming part of the global financial system, Latin America still needs to develop a clear and functional regulatory framework. This not only hinders innovation but also puts millions of users and investors in the region at risk.
To better understand the situation, we spoke with Jasmin Garcia, founder of Nohbek, a BAAS (blockchain as a service) platform specializing in Web 3.0 solutions and digital transformation. Jasmin, known for her work as a regulatory expert, warns: 'In Latin America, we comply with requirements out of obligation, not conviction; if there is no law, there is no best practice, which forces us to act reactively rather than proactively.' An example from Europe: MiCA as a model to follow.
In April 2020, the European Parliament approved the Regulation on Markets in Crypto-Assets (MiCA), which will come into effect in December 2024. This is the first comprehensive law regulating not only cryptocurrencies but also stablecoins, tokens, exchanges, and crypto-asset issuers.
MiCA requires service providers to register, comply with anti-money laundering regulations, and provide detailed official documents. One of the most notable examples was Tether (USDT), which did not obtain a license and was excluded from European exchanges.
MiCA is a kind of 'before' and 'after'. It is clear, functional, and provides legal certainty to all stakeholders. In Latin America, we are far from anything like it.
Unlike the European Union, the United States still does not have a single federal law that comprehensively regulates the crypto ecosystem. Instead, a fragmented system has been created where different agencies deal with separate aspects.
The U.S. Securities and Exchange Commission (SEC) regulates crypto assets that it considers securities, as in the case with Ripple and Binance.
The Commodity Futures Trading Commission (CFTC) oversees assets related to commodities.
The U.S. Internal Revenue Service (IRS) treats crypto assets as property for tax purposes, requiring reporting of gains and losses.
The Financial Crimes Enforcement Network (FinCEN) establishes KYC and AML standards on exchange platforms.
Companies like Chainalysis assist the government in detecting illegal transactions using artificial intelligence.
Additionally, some states, such as Wyoming, have taken stronger steps by legally recognizing DAOs and promoting local legislation that supports cryptocurrencies.
While this institutional structure allows for a certain degree of functional regulation, the country still faces the challenge of harmonizing criteria among agencies and ensuring greater legal transparency for users, companies, and developers. The lack of a cohesive federal system creates uncertainty, especially for those looking to operate at the national level.
Although the situation in Latin America is diverse, fragmented or absent approaches prevail. Here are a few examples:
El Salvador recognized Bitcoin as legal tender in 2021. However, without an active educational campaign, its adoption was limited.
Brazil passed a law in 2023 regulating the activities of financial technology service providers, including cryptocurrencies.
Argentina legally allows the buying and selling of cryptocurrencies, although without specific legislation.
In Peru and Colombia, bills are under discussion but have not yet been passed.
Bolivia prohibits the use of cryptocurrencies as a means of payment.
Ecuador announced regulations in 2022, which have not yet come into effect.
We observe fragmented efforts. But without regional coordination, minimal standards, and political will, there is a risk of losing the race for technological leadership.
One of the key points noted by Garcia is that governments still see blockchain only as a synonym for cryptocurrencies. But this technology has many applications, such as tracking agricultural and industrial products, decentralized digital identity systems, transparency in public procurement and social programs, automating audits and legal processes, as well as managing digital rights and intellectual property.
Blockchain is not the enemy. But in many governments, including Mexico's, it is still associated with fraud, speculation, and illegal money circulation. This limited vision deprives us of a future.
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