BeInCrypto comprehensive Latam Crypto Roundup brings Latin America’s most important news and trends. With reporters in Brazil, Mexico, Argentina, and more, we cover the latest updates and insights from the region’s crypto scene.

This week’s roundup features Binance’s VASP registration in Argentina, Ripple’s expansion into Brazil, and other major developments.

Binance Secures VASP Registration in Argentina

Binance, one of the largest cryptocurrency platforms globally, has reached a major milestone in Argentina by registering as a Virtual Asset Service Provider (VASP) with the country’s National Securities Commission (CNV). This registration strengthens Binance’s commitment to adhering to regulatory frameworks, not only in Argentina but around the world. 

Argentina becomes the 20th country where Binance has secured a license or regulatory registration, following the company’s recent progress in key jurisdictions like India, Kazakhstan, and Indonesia. Binance has already established a presence in other major markets, having secured licenses in Dubai, France, Japan, and El Salvador, which continues to solidify its global footprint.

With this VASP registration, Argentine users can now fully access Binance’s suite of services and tools through both its website and mobile app. This move will make it easier for local users to engage in the cryptocurrency ecosystem, offering them the security of a platform that upholds the highest standards of compliance and protection.

“Argentina is a key market for Binance. We will continue to work closely with the local authorities to develop the industry in the safest and most sustainable way possible. This is for the benefit of the crypto community and society in general,” said Guilherme Nazar, Binance’s director for Latin America.

Read more: How To Trade Crypto on Binance Futures: Everything You Need To Know

Nazar also highlighted Binance’s belief in proactive regulation as essential for the orderly and safe evolution of the cryptocurrency industry, a principle that is central to the company’s ongoing global expansion efforts. This regulatory breakthrough further demonstrates Binance’s commitment to creating a secure, compliant environment for its users while advancing the development of the global cryptocurrency market.

Ripple Expands in Brazil Through Partnership with Mercado Bitcoin

Ripple has launched Ripple Payments in Brazil through a partnership with local exchange Mercado Bitcoin. This collaboration will allow businesses to explore cross-border payments using Ripple’s end-to-end blockchain-based payment solution.

Mercado Bitcoin, the first in Latin America to use Ripple’s solution, will enhance its internal treasury between Brazil and Portugal and offer international payments for retail customers. These customers will be able to make payments in reais via a non-resident account, with funds transferred globally 24/7 and settled within minutes.

“Ripple Payments offers capabilities that are important to crypto businesses, enabling them to streamline operations, optimize liquidity, and improve margins through real-time payment settlement. We are delighted to partner with Mercado Bitcoin, a crypto market leader with more than a decade of experience in providing tokenized services to Brazil,” said Silvio Pegado, CEO of Ripple in Latin America.

Read more: XRP ETF Explained: What It Is and How It Works

Ripple Payments will focus on small and medium-sized enterprises, providing optimized onboarding, global access to over 80 payment markets, and 24/7 liquidity. Jordan Abud, Head of Banking at Mercado Bitcoin, added, “The partnership allows Bitcoin Market to take another step towards internationalization…offering lower costs and a more complete platform.”

Ripple Payments currently covers 80 payment markets, with 90% coverage of the FX market and more than $50 billion in processed volume. For now, the service is available to Mercado Bitcoin customers in Brazil and Portugal.

IMF Urges El Salvador to Limit Public Sector Exposure to Bitcoin

The International Monetary Fund (IMF) has once again urged El Salvador to limit its public sector exposure to Bitcoin and to strengthen oversight of its regulatory framework. Despite the country’s notable 3% GDP growth in 2024, the IMF continues to express concerns about the risks posed by cryptocurrency volatility.

Since El Salvador made Bitcoin legal tender, the IMF has conducted several assessments, maintaining that the risks associated with Bitcoin’s price swings remain significant. While the IMF has adopted a more moderate stance compared to earlier years, it still insists on stricter regulations to ensure economic stability.

“We have recommended reducing the scope of the Bitcoin law, strengthening the regulatory framework and oversight of the Bitcoin ecosystem, and limiting public sector exposure to Bitcoin,” said Julie Kozack, IMF communications director, quoted by Reuters.

Read more: Who Owns the Most Bitcoin in 2024?

President Nayib Bukele, currently on an official visit to Argentina, remains a strong advocate for Bitcoin, though he acknowledges that adoption rates in El Salvador have fallen short of his expectations. He expressed a desire for greater acceptance among Salvadorans but emphasized that adopting the cryptocurrency has been a free choice for citizens.

Despite the IMF’s warnings, El Salvador continues to purchase Bitcoin through its Dollar Cost Averaging (DCA) strategy. To date, the government has accumulated 5,892.76 BTC, valued at approximately $360.97 million.

Nubank to Reduce Crypto Transaction Fees

On October 2, Brazil’s Nubank Cripto announced plans to lower the fees for cryptocurrency transactions in its app, with the changes set to roll out gradually through October and November. Under the new system, transaction fees will be based on the volume of customer trades, with potential reductions of up to 60%.

According to Nubank, the fee for buying and selling cryptocurrencies could drop to as low as 0.6% per transaction. Customers will have a 45-day cycle to accumulate transactions, after which the fee will be adjusted according to their trading volume. The new system improves upon the previous average rate of 1.6%, which had already decreased to 0.8% between March and September 2024.

The volume tiers Nubank will use to determine fees are as follows:

• Between 0 and 99 reais
• 100 to 1,999 reais
• 2,000 to 9,999 reais
• More than 10,000 reais

Read more: Crypto vs. Banking: Which Is a Smarter Choice?

This fee structure rewards high-volume traders with lower transaction costs, a common practice in the crypto industry, known as “transaction tiers.” Major platforms like Binance also use a similar model. Nubank Cripto expects all customers to access the new system, though the implementation will be gradual.

Transaction fees, essential for on-chain processes, incentivize miners or nodes to validate transactions. While networks like Ethereum have struggled with high fees for years, Nubank Cripto’s new system aims to offer a more user-friendly experience for its customers.

As the Latam crypto scene grows, these stories highlight the region’s increasing influence in the global market. Stay tuned for more updates and insights in next week’s roundup.

Tech billionaire Elon Musk attended a rally for Republican candidate Donald Trump on October 5, stirring significant market reactions, especially among meme coins linked to the former president.

The event took place in Butler, Pennsylvania, the site of an attempted assassination of Trump in July.

Dark MAGA Meme Coin Jumps 227%

Musk, the owner of social media platform X, arrived at the rally wearing a black blazer, an “Occupy Mars” shirt, and a black MAGA hat. His appearance marked an important moment in his growing political involvement in the impending US November elections.

Observers noted Musk’s attendance at the rally highlights his strengthening ties with Trump. Trump previously mentioned that he would appoint Musk to head a government efficiency commission if re-elected. Meanwhile, Musk has emerged as a prominent Trump supporter, even hosting the former president on a live X Space session in August.

At the rally, Musk encouraged the crowd to register and vote in November, calling it “the most important election of this lifetime.” He stressed the urgency by urging attendees to get others involved in the voting process.

Read more: How Can Blockchain Be Used for Voting in 2024?

During his speech, Musk referenced Dark MAGA, a meme coin inspired by Trump. After his remarks, Dark MAGA’s value surged by 227%, reaching approximately $0.0073. Other meme coins also experienced gains. MAGA (TRUMP) rose 3%, Doland Tremp (TREMP) spiked 10%, and Super Trump (STRUMP) increased 5%.

“As you can see, I’m not just MAGA. I’m dark MAGA,” Musk stated.

Meanwhile, this rally in meme coins comes as election odds on platforms like Polymarket shift. This reflects a close contest between Trump and Vice President Kamala Harris.

Read more: 7 Hot Meme Coins and Altcoins that are Trending in 2024

According to Polymarket, Trump has a 50.4% chance of winning, while Harris’s odds are 48.5%. This is the closest contest the platform has seen since mid-September, highlighting the uncertainty surrounding the upcoming election.

Ethereum (ETH) price recently faced a 13% correction, bringing the altcoin down from local highs. However, the cryptocurrency is showing signs of recovery, having secured a crucial bear market support level.

With market sentiment slowly improving, ETH appears poised for a potential rebound, though challenges remain.

Ethereum Losses Trigger HODLing

Ethereum has seen a spike in realized losses, which typically signals untimed selling from investors who may have exited positions during the downturn. Interestingly, these upticks can also indicate a shift in investor behavior, with many opting for HODL rather than risk further losses. By holding onto their assets, investors are waiting for Ethereum’s price to rise, giving them an opportunity to sell for a profit later on.

This change in strategy could help stabilize Ethereum’s price, as the reduction in selling pressure may prevent additional declines. Long-term holders are likely holding out for a better market environment, which could contribute to Ethereum’s gradual recovery.

Read more: How to Invest in Ethereum ETFs?

The overall macro momentum for Ethereum is looking more favorable, especially when analyzing the exchanges’ net position change. This indicator tracks the flow of ETH into and out of exchanges, and the recent decline shows that inflows into exchanges have dropped. Lower inflows typically suggest reduced selling pressure, as fewer investors are moving their assets onto exchanges to sell.

This shift in momentum reflects a positive change in market sentiment. As selling activity decreases, Ethereum could gain some breathing room to recover from its recent decline. Investors are showing increased confidence in the asset, which may lead to upward price movement in the coming days.

ETH Price Prediction: Bouncing off Support

Ethereum’s price is currently trading at $2,428, recovering from its recent 13% decline. The cryptocurrency has successfully secured the 23.6% Fibonacci Retracement line at $2,401 as a support level, signaling a possible continuation of uptrend.

With the aforementioned market factors in play, Ethereum could potentially breach the $2,591 barrier, which coincides with the 38.2% Fibonacci line. A successful breakout would bring ETH above $2,600, allowing it to regain some of the ground lost during the correction.

Read more: Ethereum (ETH) Price Prediction 2024/2025/2030

However, if Ethereum fails to breach $2,591, the altcoin may enter a period of consolidation, trading between $2,401 and $2,591. This would keep Ethereum subdued and invalidate the current bullish outlook, delaying any further price rallies in the near term.