A GFI (Global Financial Integrity) report has revealed that Latin American nations are not well equipped to battle crypto scams and crimes. The Washington-based think tank released a document recently evaluating crypto crimes in Latin America.
According to the document, crypto adoption has recently increased in Latin America. However, the report argued that the pace of crypto regulation has been slow.
Latam Very Open To Crypto-Related Crimes – GFI
As a result of the poor economic situation and difficulties in Latin America, many individuals have turned to crypto. This has caused crypto adoption to skyrocket in the region.
Unfortunately, a recent GFI report revealed that crypto regulation has been lagging in the area. The document evaluated the development of crypto in the Caribbean and Latam.
It focused on nations with a high rate of crypto adoption, such as Brazil, Mexico, Colombia, Argentina, and El Salvador. Moreover, some of these countries have already embraced crypto payments.
Meanwhile, the report uncovered several regulatory loopholes in some countries’ regulations. These loopholes would enable fraudsters to perpetrate money laundering activities without detection.
In addition, the study stated that some nations do not have crypto-specific regulations. Hence, they cannot tackle several crypto-based issues apart from crypto taxation.
Also read:According to the report, Latin American countries should know that digital currencies are a novel asset class. Hence, they must study these assets carefully.
The report noted that this would assist them in developing proper regulations for the sector.
Suggestions For Latam Authorities
The study stated that the needs of one Latam country differ from the other. Therefore, governments must tailor regulations to suit the needs of their country.
Latam governments must ensure their regulations improve alongside these nascent technologies. This would help them detect and prosecute crypto-related crimes.
There are other tools that federal authorities can use, the document stated. One is to promote campaigns that educate people about cryptocurrencies.
Such campaigns should also educate them about the risks related to crypto investments. Furthermore, the report noted that there is one important measure that Latam governments can apply.
They must implement AML/KYC (Anti-Money Laundering/Know Your Customer) protocols among service providers. According to the study, these guidelines can help to prevent money laundering and identify potential criminals.
Similarly, the government can adopt the recommendation of global entities such as the FATF (Financial Action Task Force). Additionally, Latam authorities can partner with such agencies to exchange crypto-related data.
This data would make it easier for law enforcement agencies to put crypto criminals behind bars.
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