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Latam Crypto News: Brazil Approves Solana ETF

Published

1 month ago

August 10, 2024

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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 includes stories on Solana ETF approval in Brazil, Bolivia’s interest in metal-backed stablecoins, and more.

Brazil Approves World’s First Spot Solana-Based ETF

The Brazilian Securities and Exchange Commission (CVM) has given the green light for the launch of the world’s first spot Solana-based exchange-traded fund (ETF). This product is currently in its pre-operational phase, with final approval pending from Brazil’s main stock exchange, B3.

The spot Solana ETF, managed by QR Asset and operated by Vortx, will track the CME CF Solana Dollar Reference Rate. Theodoro Fleury, Chief Investment Officer of QR Asset, expressed enthusiasm about the new ETF.

“This ETF reaffirms our commitment to offering quality and diversification to Brazilian investors. We are proud to be global pioneers in this segment, consolidating Brazil’s position as a leading market for regulated investments in crypto assets,” Fleury said.

The ETF launch will integrate Solana into mainstream financial systems and mark the first Solana-based product in Brazil. Over the past few years, the Latam country has shown a strong interest in pioneering financial products, with B3 playing a major role.

The exchange has listed several crypto ETFs, including those for Bitcoin and Ethereum, between 2021 and 2022. Most recently, in March 2024, B3 began offering BlackRock’s iShares Bitcoin Trust (IBIT).

Peru Launches New Anti-Money Laundering Regulation for Crypto Companies

Starting August 1, Peru’s cryptocurrency market enters a new regulatory era. The Superintendency of Banking, Insurance, and AFPs (SBS) has introduced the country’s first official framework aimed at preventing money laundering and terrorist financing within the sector.

This regulation requires all cryptocurrency businesses, including digital wallet providers and investment platforms, to follow strict anti-money laundering (AML) measures. The SBS will oversee these entities to ensure they implement a “risk-based approach” to deter illicit activities.

A key aspect of the new rules involves verifying the identity of transaction beneficiaries. This step aims to prevent corrupt funds and other illicit gains from infiltrating the financial system. The regulation covers all transactions, even those under $1,000, with potential for increased scrutiny in the future.

Non-compliance with these regulations could result in severe penalties. Companies that fail to meet the new standards may face hefty fines, the loss of their operating licenses, or the removal of their websites and apps.

This measure aligns with Recommendation 15 of the Financial Action Task Force (FATF), which urges countries to enforce legal frameworks for the supervision of virtual asset service providers (VASPs). Peru’s move follows similar actions in other Latam countries, such as Argentina, where stricter crypto regulations were implemented despite initial resistance.

Paraguay Dismisses Exodus of Miners Despite Higher Electricity Rates

Paraguay’s National Electricity Administration (ANDE) has dismissed concerns over an exodus of cryptocurrency mining companies following a hike in electricity rates. The increase, which raised tariffs by up to 16% for large-scale cryptocurrency miners, sparked fears of companies fleeing to neighboring countries like Brazil.

The Paraguayan Chamber of Mining of Digital Assets (Capamad) had previously warned that many cryptocurrency miners were considering relocating to Brazil due to the rising costs. Capamad suggested that Paraguay could lose its appeal as a favorable location for Bitcoin mining.

However, Félix Sosa, president of ANDE, refuted these claims, asserting that no mining companies had left Paraguay. Sosa highlighted a recent contract with a large mining operation, which secured the supply of 6 megawatts (MW) of electricity, ensuring the continued operation of 72 mining companies in the country.

“A technical evaluation is made to verify where to install, where ANDE has power availability for the installation of this type of load,” Felix Sosa explained to ABC.

Sosa also revealed that these 72 companies currently have 391 MW of contracted electricity, with a total potential of 821 MW. He shared that ANDE expects to generate $100 million in revenue from these contracts. Additionally, 400 MW of new contracts with mining companies are pending approval.

In contrast, Jimmy Kim, director of Capamad, noted that the expansion plans of many cryptocurrency mining companies now favor Brazil over Paraguay. He pointed to a contract signed by Penguin Group for 400 MW in Brazil, with another 400 MW in the pipeline.

Despite these tensions, ANDE has maintained its stance, arguing that the increased tariffs will help reduce losses from illegal mining activities, which amount to over $185,000 annually. The tariff increase, outlined in Resolution 49238 issued on June 26, targets large-scale cryptocurrency miners specifically.

Bolivian President Luis Arce is advocating for the adoption of cryptocurrencies backed by metals, such as lithium and gold, as part of a broader strategy to strengthen Bolivia’s financial system. This move aims to integrate digital assets with the country’s abundant mineral resources while reducing reliance on the US dollar.

President Arce highlighted that this initiative would promote the use of metal-backed cryptocurrencies like Tether’s Alloy stablecoin (aUSDT). He noted that the measure is designed to streamline the flow of foreign currency into Bolivia and strengthen the payment system for international transactions.

“The greater dissemination of cryptoassets backed by gold, lithium, and other technological metals like Alloy (aUSDT) will boost the inflow of foreign currency into the country and deepen the payment system for international purchases,” Arce stated.

Gold-Backed Stablecoins. Source: CoinGecko

This push follows a recent proposal by Congresswoman Mariela Baldivieso, who introduced a bill in the Bolivian Legislative Assembly to regulate Bitcoin. Baldivieso argued that cryptocurrencies could enable Bolivia to conduct transactions and receive international payments without depending on traditional fiat currencies.

In June, Bolivia lifted its ban on cryptocurrencies, allowing the use of “virtual assets” through Electronic Payment Instruments (EPI). The announcement by Edwin Rojas, president of the Central Bank of Bolivia, marked a shift in the country’s financial policies.

Uruguay Sees Rising Interest in Real Estate Deals Using Bitcoin

Uruguay is witnessing a rising trend in real estate transactions conducted with Bitcoin, signaling a shift in how properties are bought and sold. Recently, a property was purchased for $500,000 in Bitcoin, facilitated by Banque Heritage as an intermediary.

This event is showcasing Bitcoin’s potential as a medium of exchange in real estate. Cryptocurrencies, known for challenging traditional financial systems, offer an alternative to conventional currencies by enabling quick, borderless transfers without the need for banks or other intermediaries.

Local analysts highlight several advantages of using Bitcoin for real estate transactions, including faster processes and reduced costs. By cutting out financial intermediaries, transaction fees decrease, and the global market becomes more accessible, free from the complexities of currency conversions.

Uruguay has quickly embraced the use of cryptocurrencies in real estate. As of October 1, 2022, a new law allows buying and selling property with digital currencies. This change made what was once considered a swap into a fully legal sale, recognizing cryptocurrencies as valid payment.

The General Tax Directorate, which previously didn’t accept cryptocurrencies for real estate transactions, has now welcomed this new approach. This positions Uruguay as a leader in bringing digital assets into the real estate market. On July 17, 2023, this was clearly demonstrated when a property was sold using Bitcoin, with Banque Heritage and Cryptotrust managing the transaction.

Binance VP for Latam to Speak at RIW 2024 on BeInCrypto Stage

As Rio Innovation Week 2024 approaches, Guilherme Nazar, Vice President for Latin America at Binance, has been confirmed as a speaker on the BeInCrypto stage. Nazar will address the current state of the industry, future prospects, and the path to reaching the next billion users.

Nazar will also discuss the importance of customer focus, education, and security in advancing crypto adoption, particularly in Latam. He noted that Brazil is heavily investing in Web3 solutions, positioning it as a global leader in this area.

“Latin America is a market with great prospects for the digital asset ecosystem, home to three of the top 20 countries in adoption, and there are endless opportunities to develop the local industry, meet users’ needs and educate society. We are determined to work hand in hand with policymakers to define regulations that allow innovation to advance and protect users’ funds,” he said on taking over management of the region.

Alena Afanaseva, CEO of BeInCrypto, and Fabrício Tota, Director of New Business at Mercado Bitcoin, will join Nazar on stage. Afanaseva has turned BeInCrypto into a global crypto news hub with eight million monthly visitors. Tota, meanwhile, is a key figure in Brazil’s crypto industry.

The BeInCrypto stage at Rio Innovation Week will feature names like Agrotoken, B3, and Comissão de Valores Mobiliários (CVM). Other participants include Itaú Unibanco, Bradesco, BTG Pactual, Banco do Brasil, and Microsoft. TecBan, ABCripto, Bitso, Trexx, MIBR, Plataforma Impact, and the Ethereum Brasil community will also be present.

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.

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.

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TradFi To Become Biggest DeFi Customer

Published

28 mins ago

September 19, 2024

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Chainlink co-founder Sergey Nazarov predicts that tokenized real-world assets (RWAs) will soon be more valuable than cryptocurrencies. He points to the increasing involvement of traditional finance in decentralized finance, driven by a growing interest in tokenization.

Nazarov also noted that Chainlink is ready to take advantage of this shift in the blockchain space.

TradFi Interest in Tokenized RWAs To Alter Blockchain

Nazarov anticipates an interconnected world where decentralized finance (DeFi) and TradFi actively transact with each other. Acknowledging the growing interest in tokenized RWAs, he says TradFi would be DeFi’s largest customer.

Speaking at Token2049 in Singapore, Nazarov highlighted DeFi’s ability to generate yield and create reliable markets for RWAs. He urged the industry to prepare for this shift, noting that it’s already happening, driven by asset tokenization. According to Nazarov, blockchain technology is giving TradFi exactly what it needs.

Chainlink co-founder also highlighted how decentralized infrastructures like Chainlink and smart contracts are transforming the digital space by removing the need for traditional counterparty relationships. Instead of relying on human decision-making, automated code ensures outcomes, improving efficiency and reducing risks that traditional finance models often face.

Chainlink co-founder on TradFi, DeFi, and tokenized RWA during Token2049 in Singapore

Nazarov emphasized that this represents a major shift from the current TradFi model, where delays and risks stem from human intervention.

His remarks align with his statements from late August, when he predicted that tokenized real-world assets (RWAs) would surpass crypto in value by 2027, driven by institutional interest and TradFi integration. Currently, the RWA market is growing, with RWA.xyz data showing it is already a $2.22 billion industry.

Tokenized RWA — Tokenized Securities Industry Valuation. Source: RWA.xyz

This development comes as blockchain technology continues to tackle the infrastructure challenges faced by traditional finance, while also opening up new investment opportunities. Blockchain’s ability to streamline workflows and significantly improve settlement times is especially appealing — echoing what Sergey Nazarov explained about the efficiency and certainty that decentralized systems offer.

“TradFi needs all kinds of different data that allow those traditional finance smart contracts to function properly…the Net Asset Value (NAV) data of tokenized funds is an example of a dashboard live on production showing the proof of Reserves of one of the many ETF funds use to prove things about them,” Nazarov said.

Notwithstanding, the road to a complete transition to digital infrastructure is marred with challenges. Among them are legal considerations, identity standards, and data privacy, which would demand careful evaluation with regulatory systems in mind.

Accordingly, TradFi and DeFi players and the broader financial services industry must work to build infrastructures capable of supporting broader tokenization adoption while ensuring security and compliance before Nazarov’s dream can become a reality.

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Vitalik Buterin’s Speech, and More

Published

2 hours ago

September 19, 2024

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The Token2049 conference in Singapore has once again proven to be a key event for the crypto industry, showcasing major advancements and collaborations.

The event covered everything from Ethereum’s growth to new partnerships in sports and AI, highlighting how the industry continues to evolve.

Vitalik Sings Ethereum’s Progress: Fees, Speed, Future

Ethereum creator Vitalik Buterin surprised Token2049 attendees by delivering his speech in the form of a concert. Despite the unusual presentation, he shared key updates on Ethereum’s progress.

Buterin highlighted how Layer-2 networks have reduced transaction fees and improved transaction confirmation times to just 5 to 15 seconds.

He also stressed the importance of balancing mainstream adoption with Ethereum’s core values of decentralization and open-source development. Buterin briefly mentioned the ongoing competition with Bitcoin, which currently dominates 58% of the market.

On the second day of Token2049, global crypto exchange Bitget announced a partnership with LaLiga. The collaboration, timed with Bitget’s sixth anniversary, will focus on leveraging blockchain technology alongside LaLiga’s ventures into AI, virtual reality, and the metaverse.

Bitget CEO Gracy Chen highlighted the alliance’s potential to connect with millions of football fans in emerging markets. This follows Bitget’s 2022 partnership with Lionel Messi, reflecting the growing overlap between crypto and sports.

Solana Mobile Unveils ‘Seeker’: Next-Gen Web3 Smartphone

Solana Mobile, a subsidiary of Solana Labs, has unveiled its second-generation Web3 smartphone, called “Seeker”. Previously referred to as “Chapter Two,” Seeker has already secured over 140,000 presale units across 57 countries, according to Emmett Hollyer, Solana Mobile’s general manager. The device is set for release in 2025 and aims to further Web3 mobile development within the Solana ecosystem.

Seeker’s key features include a seed vault wallet, Solana dApp Store 2.0, a Seeker Genesis token, and enhanced hardware. The Early Founder price is $450 until September 21, 2024.

This launch comes after the Saga phone faced initial struggles with sales, but later sold out following a surge in the value of the BONK meme coin.

Chainlink’s Sergey Nazarov Predicts RWA Surge

Chainlink co-founder Sergey Nazarov once again predicted that tokenized real-world assets (RWA) will soon surpass cryptocurrencies in value on Web3. During his keynote at Token2049, he stated that TradFi will become decentralized finance’s (DeFi) largest customer, reshaping the blockchain industry.

Nazarov highlighted Chainlink’s Cross-Chain Interoperability Protocol (CCIP) as crucial in connecting various financial systems. He noted that Chainlink’s oracle network has already enabled $15.49 trillion in transaction value since 2022.

To integrate with blockchain, TradFi needs access to diverse data types and cross-chain connectivity. CCIP offers programmable token transfers, allowing value and data to be included in single transactions.

CertiK, the prominent blockchain security firm, announced a major upgrade to its Web3 services. The company introduced two free community security tools: Token Scan and Wallet Scan, aimed at increasing user asset protection.

Token Scan offers instant security checks for tokens, helping users detect potential scams on networks like Solana. Wallet Scan allows users to assess their wallets for risks such as approval vulnerabilities, and interactions with phishing addresses.

These tools were developed based on CertiK’s extensive experience, including over 70 white hat operations, reporting of 4,000+ security incidents, identification of 115,000 code vulnerabilities, and protection of approximately $360 billion in assets.

Hollywood Veteran Critiques Celebrity Meme Coins

Andrew Saunders, a former Hollywood executive and now Skale’s chief marketing officer, voiced criticism of celebrity-backed meme coins at Token2049. Despite his background in entertainment, Saunders warned against these tokens due to concentrated supply and high risk, likening them to a player-versus-player game where early entry is key to making a profit.

Looking ahead, Saunders predicted a shift in the landscape as crypto regulations become clearer and public understanding improves. He envisioned a future where celebrities use blockchain to connect with fans in a more meaningful way, accessing unique data through an “arm in” model.

As a better alternative to meme coins, Saunders suggested that celebrities develop decentralized applications (DApps) where fans could earn points through social interactions. These points could then be redeemed for exclusive experiences or merchandise.

Solidus Ai Tech and SambaNova Partner for Web 3.0 AI

Solidus Ai Tech has partnered with SambaNova Systems to advance AI in Web 3.0 by integrating SambaNova’s RDU stacks into Solidus Ai Tech’s AI marketplace and European HPC Data Centre. This collaboration promises unprecedented speeds in AI inferencing and fine-tuning.

Set to launch in September, the AI Marketplace will feature advanced AI models powered by SambaNova’s SN40L chip, making high-performance AI accessible across various industries. Paul Farhi, CEO of Solidus Ai Tech, described it as a major leap for AI, while Su Le from SambaNova emphasized the potential for decentralized intelligence in Web 3.0.

Venture Trio Launches Fund for Aptos Ecosystem Growth

MEXC Ventures, Foresight Ventures, and Mirana Ventures have joined forces to establish a new fund aimed at boosting the Aptos ecosystem. This collaborative initiative will focus on supporting promising projects built on the Aptos platform, with a particular emphasis on developing crucial Web3 use cases.

The fund will prioritize projects that leverage Aptos infrastructure, including technologies like Block-STM, and those that facilitate seamless interoperability with key EVM ecosystems. This strategic investment demonstrates strong confidence in Aptos’ technological advancements and future potential.

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How Fed Rate Cut Could Help LINK

Published

3 hours ago

September 19, 2024

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Chainlink’s (LINK) price has risen above $11 following the recent Fed rate cut. This increase has ignited fresh speculation about the coin’s short-term outlook.

In this analysis, BeInCrypto examines the factors contributing to the hike, the potential implications of the rate cut, and what traders can expect from LINK.

Chainlink Key Drivers Want More

According to Santiment, alongside the recent rate cut, Chainlink’s 90-day Mean Coin Age (MCA) has risen. The MCA reflects the average age of tokens in circulation, with a low MCA suggesting that previously inactive tokens are being moved from cold wallets, potentially leading to a sell-off and putting downward pressure on the price.

Conversely, a rising MCA indicates that investors are holding onto their tokens and engaging less in trading activity, often signaling a long-term hold strategy. In Chainlink’s case, the spike in the MCA suggests that many investors are choosing to keep their LINK tokens dormant or moving them into self-custody, reducing selling pressure.

Chainlink 90-Day Mean Coin Age. Source: Santiment

Beyond the rising coin age, the 4-hour LINK/USD chart reveals a surge in the Cumulative Volume Delta (CVD), a key indicator of market sentiment. Each bar on the CVD shows whether the market is dominated by buying or selling activity. Red bars signal selling pressure, which could drive the price down.

In LINK’s case, the chart shows five consecutive green bars, indicating sustained buying pressure. This suggests that the market’s demand for LINK is growing, potentially supporting the continuation of its uptrend.

Chainlink Cumulative Volume Delta. Source: TradingView

LINK Price Prediction: Further Gains

The daily chart shows that Chainlink is holding strong at the $10.02 support level, which played a key role in its recent breakout above the $10.83 resistance. Currently, LINK is trading at $11.30, with no significant resistance in sight to halt the uptrend.

Using Fibonacci retracement levels to assess potential price targets, LINK’s next likely move could take it to $11.86, corresponding to the 38.2% Fibonacci level. If it breaks past this point, the next target could be around $12.98, a level that appears within reach given the current momentum.

Chainlink Daily Analysis. Source: TradingView

However, the cryptocurrency could experience a pullback if it fails to surpass $11.86. If that happens, LINK might drop to $9.25.

Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.

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