According to the study, there has been a significant uptick in the popularity of cryptocurrencies across Latin America. The study, on the other hand, suggested that the rate at which crypto regulation has been moving has been sluggish.

According To GFI, Latin America Is Wide Open For Crypto-Related Crimes.

A great number of people in Latin America have begun to invest in cryptocurrency as a means of coping with the region's challenging economic climate and political climate. Because of this, the use of cryptocurrencies has seen a meteoric rise throughout the region.

Sadly, it was found in a GFI analysis that only just published that crypto regulation in the region has lagged behind. The evolution of cryptography in Latin America and the Caribbean was analyzed in the aforementioned publication.

It concentrated on countries with a strong adoption rate of cryptocurrencies, such as Brazil, Mexico, Colombia, Argentina, and El Salvador, among others. In addition, a few of these nations have already begun to accept cryptocurrency payments.

In the meanwhile, the investigation found a number of regulatory vulnerabilities in the legislation of some nations. Because of these gaps in the law, con artists would be able to do money laundering operations without fear of being caught.

In addition, the survey found that certain countries do not have rules pertaining specifically to cryptocurrencies. As a result, they are unable to address any cryptocurrency-related matters other than cryptocurrency taxation.

According to the findings of the analysis, Latin American nations should be aware that a new asset class has emerged in the form of digital currencies. As a result, they are required to properly investigate these assets.

The study made mention of the fact that this would help them in formulating appropriate laws for the industry.

Suggestions for the Authorities in Latin America

According to the findings of the study, the requirements of each nation in Latin America are distinct from one another. As a result, governments are required to craft legislation that are suitable for the requirements of their respective nations.

The governments of Latin America need to make sure that their rules advance in tandem with these emerging technology. They would be able to discover and punish crypto-related offenses with the assistance of this.

According to the paper, the federal authorities have access to a variety of different resources that they might utilize. One option is to support and publicize initiatives that aim to increase cryptocurrency literacy.

Participants in these campaigns must to also be educated on the hazards associated with cryptocurrency investing. In addition, the research highlighted the fact that the governments of Latin American countries can implement an essential action.

They are required to adopt AML/KYC procedures among service providers. AML/KYC stands for "anti-money laundering" and "know your customer." According to the findings of the study, these recommendations can be of assistance in preventing the laundering of money and identifying prospective lawbreakers.

In a similar vein, the government may decide to follow the advice of international organizations such as the FATF (Financial Action Task Force). In addition, the authorities in Latin America might form partnerships with organizations of this kind in order to share information concerning cryptocurrencies.

If law enforcement authorities had access to this data, it would make it much simpler for them to put cyber criminals behind prison.