September 24th marked the start of AIBC Americas Digital Summit where moderator Elena Obukhova founder of FAS (Fintech Advisory Services) was joined by veterans in the market namely Etienne Luquet of Legal Lab, and Jose Antonio Lanz Diaz of Decrypt Media to discuss cryptocurrency regulations in LatAm.
Status of Cryptocurrencies in LatAm
Latin America is one of the fastest growing regions, in terms of the Crypto adoption so what is the current status of the Crypto currencies in Latin America?
Luquet argues that crypto could be the solution to many of LatAm’s problems:
Crypto is really a magical solution for the monetary and economic problems that our current currency in some Latin American countries, Argentina, Venezuela.
In effect, cryptocurrencies instill a sense of security in people for their money given the large amount of restrictions currently in place within the states.
Luquet offers an example to quantify the cryptocurrency sphere in LatAm stating: “Mexico is one of the first countries in the world to actually have a fintech law that regulates payment systems, crypto currencies and crowd funding”.
He also adds nonetheless that there are hurdles faced within the sphere:
“there’s still a lot of pushback from financial entities and especially in the crypto space, because after the 2017 boom and all the ICO’s, you know, there were a lot of scams. So, people, and especially the authorities are very scared that people are getting scammed”.
Regulating cryptocurrency in the Americas
Regulating cryptocurrency has been in action in the Americas since 2018.
“The law actually defines a cryptocurrency as a virtual asset. And this is very interesting because it’s one of the few countries that actually has a definition for cryptocurrency”
This is particularly important for the regulation process as it distinguishes what cryptocurrency is a code or an asset.
Additionally, Diaz categories cryptocurrency within the countries in three criteria’s: “The first one is where a cryptocurrency is legal and the other one is where cryptocurrency is illegal. And the third one is where cryptos are illegal or basically unregulated”.
Diaz highlights what’s unique to the region stating:
Latin America is a very interesting place to be, an interesting region to follow because and not every country thinks alike. It’s like a nice way to see how people try different approaches and different solutions to the same issue to the same problem.
SiGMA Americas and AIBC Digital Summit were launched with great success in the past week, pushing the shifting grounds of the gaming industry towards LatAm and discussing the current developments in digitalisation. In a first for SiGMA, both the gaming and the tech segments of the conference were offered in 3 languages, English, Spanish and Portuguese.
SiGMA will launch its next series of events in 2021, with SiGMA Europe headlining next year’s calendar. Inaugural summits in Asia and Americas are also set to dominate the year, with SiGMA Asia launching in May 2021 and SiGMA Africa in 2022! Explore the full agenda here and register now!