The crypto winter has pushed many countries to advance their interests as concerns the regulation of the industry. As a region known for its wide adoption of digital currencies, Latin America is becoming a powerhouse for the nascent industry, and regulators have laid the foundation to regulate the space this year.
Brazil is home to a number of crypto-heavyweight firms, including Mercado Bitcoin and Nubank. The country is arguably the biggest hub for crypto in the region, and the president signed a cryptocurrency regulation bill last week. The cryptocurrency bill will grant digital assets legal status for use as payment for goods and services but will not be given legal tender status.
In addition, Brazil, Panama, Paraguay, Honduras, Guatemala, Honduras and Argentina all also have a unique footing in establishing their own defined crypto regulations. Beyond its acceptance of Bitcoin and cryptocurrencies as a means of payment, the Argentine province of Mendoza also accepts payments for its taxes and fees using digital currencies.
With advances in crypto innovations that have seen countries like Honduras establish locations like the Bitcoin Valley, the need to officially back these innovations by law is becoming quite a necessity. All of these countries are trailing El Salvador, the first country that made Bitcoin (BTC) a legal tender on its shores back in September 2020.
Global stance on crypto regulation
The crypto winter revealed quite a lot of frailty in the Web 3.0 world, with a number of high-profile implosions and bankruptcies recorded over the past year.
From the de-pegging of TerraUSD (UST) to the bankruptcy of Three Arrows Capital (3AC), Celsius Network and Voyager Digital, regulators are now more wary of the impact of these bankruptcies on investors and the financial system.
While Japanese regulators are looking to advance their crackdown on stablecoins per an earlier report by U.Today, U.S. regulators, riding on the executive order issued by President Joe Biden, are also looking at advance regulations in the crypto industry. With industry concerns mounting around this regulatory approach in the U.S., Bloomberg Strategist Mike McGlone said this regulation will not necessarily impact Bitcoin’s growth.