Comparative Analysis of Bitcoin Regulation in Latin American Countries

Abstract

This study aims to analyze the regulations applicableto Bitcoin in force in seven Latin American countries to assess the need to strengthen the regulatory framework and its implementation in the region. For this purpose, a qualitative study was designed with an exploratory scope and a non-experimental cross-sectional approach. Information is collected from secondary sources throughthe web and a survey of academics from institutions affiliated with the ALAFEC. The results show the regulatory advances regarding cryptocurrencies. Current regulations are described for Argentina, Brazil, Chile, Colombia, El Salvador, Mexico, and Venezuela. All the countries analyzed have mechanisms for the prevention of money laundering, terrorist financing, and the use of resources of illicit origin. Nonetheless, it is necessary to strengthen the current regulations by including mechanisms for the protection of all participants. The results show the normative advances regarding the regulation of cryptocurrencies. Current regulations are described for Argentina, Brazil, Chile, Colombia, El Salvador, Mexico, and Venezuela. All the countries analyzed have mechanisms for the prevention of money laundering, the financing of terrorism, and the use of resources of illicit origin. Nonetheless, it is necessary to strengthen the current regulations by including mechanisms for the protection of all participants.