Wednesday, July 17, 2024

Welcome to Latam Insights, your source for the latest significant news in cryptocurrency and the economy in Latin America over the past week. In this edition: The Central Bank of Brazil has provided clarification on the operation of unlicensed cryptocurrency exchanges in the country; El Salvador is set to incorporate Lightning Network transactions into its Chivo ATM network; and Trubit has successfully raised $6.25 million to facilitate the growth of cryptocurrency adoption across Latam.

Central Bank of Brazil’s Clarification: Unlicensed Crypto Exchanges Permissible

The Central Bank of Brazil has issued a statement to elucidate the regulatory landscape surrounding cryptocurrency exchanges that operate without licenses. In Communication 40,874, the central bank revealed that specific conditions and deadlines for virtual asset service providers (VASPs) to align with Brazil’s cryptocurrency regulations will be established through a forthcoming normative act.

João André Calvino Marques Pereira, the head of the financial system regulation department at the central bank, emphasized that cryptocurrency platforms can continue their operations without the need for licensing during this interim period. In the official document, Calvino Marques stated:

“Until the normative act concerning this matter takes effect, virtual asset service providers are permitted to operate without prior authorization from the Central Bank of Brazil.”

Salvadoran Bitcoin ATMs Embrace Lightning Network

The ATMs within the Salvadoran Chivo network are gearing up to integrate support for the Lightning Network (LN). Matias Goldenhorn, CEO of Athena Bitcoin, the company responsible for providing these ATMs to El Salvador, announced plans to have 100 Bitcoin ATMs supporting LN transactions by the end of the year.

Goldenhorn acknowledged that the full integration of LN support for all Bitcoin ATMs in El Salvador would require an additional two to three months. Athena’s Bitcoin ATMs in other countries are slated to receive updates in 2024.

It’s worth noting that only a limited number of Bitcoin ATMs worldwide have integrated LN transactions. Athena’s move is considered a significant development, as Salvadoran users will now benefit from the platform’s low transaction fees and enhanced privacy, with transactions not being recorded on the Bitcoin blockchain.

Trubit Secures $6.25 Million for Expanding Crypto Adoption in Latam

Galactic Holdings, the parent company of Trubit, a cryptocurrency exchange platform, has successfully raised $6.25 million in a Series A funding round. This funding round, led by Galaxy Interactive and Dragonfly, positions the company to expand its operations in Latam, with a particular focus on offering payment services to both retail and institutional customers.

Maggie Wu, the co-founder and CEO of Trubit, expressed gratitude to investors and affirmed the company’s commitment to “further extending our presence across more Latin American countries, making cryptocurrency services more accessible and convenient for everyday needs.”

To stay updated on the latest developments in cryptocurrency and the economy in Latin America, subscribe to our Latam newsletter through the link provided above.

We invite you to share your thoughts on this week’s Latam Insights report in the comment section below.

Frequently Asked Questions (FAQs) about Cryptocurrency Regulations

What is the Central Bank of Brazil’s stance on unlicensed cryptocurrency exchanges?

The Central Bank of Brazil has clarified that unlicensed cryptocurrency exchanges can continue to operate in the country until specific conditions and deadlines for compliance with cryptocurrency regulations are established through a normative act. Virtual asset service providers (VASPs) are not required to obtain prior authorization from the Central Bank during this interim period.

What is the significance of Lightning Network integration for Salvadoran Bitcoin ATMs?

The integration of Lightning Network (LN) support for Salvadoran Bitcoin ATMs is significant because it allows users to benefit from lower transaction fees and enhanced privacy. LN transactions are not recorded on the Bitcoin blockchain, offering a more cost-effective and private way to conduct Bitcoin transactions.

How much funding did Trubit secure in its Series A funding round, and what is its intended use?

Trubit secured $6.25 million in its Series A funding round. The funding, led by Galaxy Interactive and Dragonfly, is intended to support Trubit’s expansion in Latin America, with a particular focus on providing cryptocurrency payment services to both retail and institutional customers.

Where can I stay updated on the latest cryptocurrency and economic developments in Latin America?

To stay informed about the latest developments in cryptocurrency and the economy in Latin America, you can subscribe to the Latam Insights newsletter, as mentioned in the text. This newsletter provides regular updates directly to your inbox.

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