Latam Still Unprepared to Face Crime and Crypto Scams, Says GFI BlockBlog Report

Latam is still unprepared to deal with cryptocurrency crimes and scams, according to a recent report by Global Financial Integrity (GFI), a Washington DC-based think tank. The document states that crypto regulation has failed to grow with the adoption of these new technologies, and governments have often failed to detect and punish crypto-related crimes.

GFI: Latam still vulnerable to crypto-related crime

While cryptocurrency adoption has grown tremendously in Latam due to the unique economic situations and difficulties of countries in the region, cryptocurrency regulation has failed to grow to match. . This is one of the conclusions of a report titled “Cryptocurrencies: A Financial Crime Risk in Latin America and the Caribbean”, published on November 14.

Produced by Global Financial Integrity, a Washington DC-based financial think tank, the report examined cryptocurrency legal developments in Latam and the Caribbean, focusing on countries with high crypto adoption like Argentina, Brazil, Colombia, El Salvador, and Mexico.

The report found several regulatory loopholes in some of these countries that could allow criminals to use crypto to commit money laundering crimes that may go undetected by authorities. Additionally, the study notes that some of these countries still lack crypto-specific regulations to tackle more than just crypto taxation, given that Latam’s use of cryptocurrency follows different trends compared to other regions.

Policy recommendations

According to the study, it is fundamental that these countries understand that cryptocurrencies are a new class of assets that calls for study in order to establish effective regulations, taking into account the needs of each of the Latam countries. Promoting information campaigns about crypto and the potential risks that users and investors may face when using these new currencies is another tool that governments can use.

However, according to the report, one of the most important measures that these governments must apply is the implementation of KYC/AML (Know Your Customer/Anti-Money Laundering) protocols among service providers, which can be used to identify possible threats. .

In the same way, the adoption of the recommendations of international organizations like the Financial Action Task Force (FATF) is advised, in conjunction with the interconnection of these agencies to collaborate and exchange data that could lead to the prosecution of cases. suspected of criminality.

Keywords in this story

AML/KYC, Argentina, Brazil, Colombia, cryptocurrency crimes, CC, El Salvador, GFI, Global Financial Integrity, latam, Mexico, vulnerabilities

What do you think of GFI’s latest report on the vulnerabilities facing Latin American countries regarding cryptocurrency crimes? Tell us in the comments section below.

Sergio Goschenko

Sergio is a cryptocurrency journalist based in Venezuela. He describes himself as late in the game, entering the cryptosphere when the price spike happened in December 2017. Having a background in computer engineering, living in Venezuela and impacted by the cryptocurrency boom at the social, it offers a different point of view. on the success of crypto and how it helps the unbanked and underserved.

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