Mexico at the Vanguard of Cryptocurrency Regulation: Mexico has stood out as a leader in Latin America in the implementation of anti-money laundering regulations on bitcoin exchanges, complying with the recommendations of the Latin American Financial Action Group (GAFILAT). The approval of the Fintech Law in 2018 and secondary regulations have allowed Mexico to comply with 22 of the 40 FATF standards, showing a proactive approach to regulation. However, these strict regulations have also complicated the registration of new platforms in the country.
Other Featured Countries in the Region: Brazil, Chile and El Salvador closely follow Mexico in the implementation of AML/CFT (anti-money laundering and counter-terrorism financing) regulations. These countries have made notable efforts to incorporate cryptocurrency exchanges within their legal frameworks. Although progress is encouraging, challenges remain in terms of uniform application and oversight of these regulations.
Skyrocketing Advances and Lack of Regulation in Some Countries: While countries such as Colombia, Ecuador and Bolivia have modified some regulations, Argentina has not yet issued regulations, despite warnings about the urgency of complying with FATF recommendations. Costa Rica, Guatemala, Honduras, Panama, Peru, the Dominican Republic and Uruguay also lag behind in issuing standards. This disparity in the region can lead to gaps in security and effectiveness in combating money laundering and other crimes.
Urgency and Increase in Cryptocurrency Adoption – GAFILAT’s guidance comes at a critical time when there is a significant increase in activities related to virtual assets in member countries. The need for adequate regulations that meet FATF standards is imperative. However, implementation can be problematic, and collaboration between regulators, supervisors and the private sector will be essential to adopt an effective regulatory approach.
Call for Evaluation and Collaboration: GAFILAT's main recommendation to advance regulation is the evaluation of the risks present due to the adoption of cryptocurrencies. The proposal to form a consultative forum represents an opportunity for a collaborative approach adapted to the needs of each country. Mexico, as a leader in the region, can serve as a model, but the path toward effective and uniform regulation throughout Latin America still requires coordinated and decisive action.
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