Latam Insights: Unlicensed Crypto Exchanges Still Allowed to Operate in Brazil

Latam Insights: Unlicensed Crypto Exchanges Still Allowed to Operate in Brazil

Welcome to Latam Insights, where we bring you the most relevant crypto and economic news from Latin America. In this edition, we highlight the Central Bank of Brazil confirming that unlicensed crypto exchanges can still operate in the country. Additionally, we discuss the integration of Lightning Network transactions in El Salvador’s Bitcoin ATMs and Trubit’s successful $6.25 million fundraising round to expand crypto adoption in Latam. Stay informed with our weekly newsletter for all the latest developments in the region’s crypto and economic landscape.

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Central Bank of Brazil Clarifies Exchanges Still Don’t Need Licenses to Operate

The Central Bank of Brazil recently released a statement clarifying the current state of cryptocurrency regulation in the country. The statement addressed the operation of unlicensed exchanges and provided some important information for virtual assets service providers (VASPs) and crypto platforms. According to the bank’s communication, unlicensed exchanges can still operate without a license during this period, as the conditions and deadlines for VASPs to adapt to Brazil’s cryptocurrency law will be established in a normative act later.

João André Calvino Marques Pereira, the head of the financial system regulation department of the bank, emphasized that until the normative act comes into force, virtual asset service providers are able to operate independently of prior authorization from the Central Bank of Brazil. This clarification provides some relief for exchanges operating in Brazil and allows them to continue their activities without the immediate need for a license.

The Central Bank’s approach aims to provide a smooth transition for VASPs and ensure they have enough time to comply with the regulations. This approach acknowledges the complexity of the cryptocurrency market and the need for thorough adaptation processes. By allowing exchanges to operate without licenses for now, the Central Bank is helping to maintain competition and innovation in the industry while ensuring that necessary regulations are met in due course.

Salvadoran Bitcoin ATMs to Support Lightning Network

In a significant development for El Salvador’s Bitcoin ecosystem, the Chivo network’s ATMs will soon integrate support for the Lightning Network. The CEO of Athena Bitcoin, the company behind these ATMs, announced plans to have 100 Bitcoin ATMs supporting Lightning Network transactions by the end of the year. This integration will provide additional functionality and benefits for Salvadoran users, making transactions faster and more cost-effective.

The Lightning Network is a second-layer protocol built on top of the Bitcoin blockchain that aims to solve scalability issues. By leveraging payment channels, Lightning Network transactions can be conducted off-chain, enabling near-instant and low-cost transactions. This integration represents a game-changer for El Salvador, where Bitcoin has been adopted as legal tender. With Lightning Network support, ATM users will be able to enjoy the advantages of this innovative technology, including reduced transaction fees and increased privacy.

However, it’s important to note that implementing Lightning Network support across all Bitcoin ATMs in El Salvador will still take some time. Athena Bitcoin estimates that it will require at least two or three more months to complete the update for all their ATMs in the country. Nevertheless, this progressive integration is a significant step in the right direction and showcases El Salvador’s commitment to embracing cutting-edge technologies in the crypto space.

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Trubit Raises $6.25 Million to Expand Crypto Adoption in Latam

In a recent Series A funding round, Trubit, a cryptocurrency exchange platform, raised an impressive $6.25 million. The funding was led by Galaxy Interactive and Dragonfly, with the participation of other investors. This injection of capital will enable Trubit, a subsidiary of Galactic Holdings, to expand its operations in Latin America and further promote crypto adoption in the region.

Trubit aims to provide accessible and convenient cryptocurrency services to retail and institutional customers across Latin America. With the additional funding, the company plans to focus on enhancing its payment services and expanding its presence in more countries in the region. This expansion will play a crucial role in driving the adoption of cryptocurrencies and blockchain technology in Latin America, where there is a growing interest in digital assets and their potential benefits.

Maggie Wu, the co-founder and CEO of Trubit, expressed gratitude to the investors for their support and emphasized the company’s commitment to making cryptocurrency services more accessible to everyone in their daily lives. Trubit’s efforts align with the broader goal of fostering financial inclusion and empowering individuals and businesses to leverage the advantages of cryptocurrencies in the Latin American market.

Overall, these developments in Brazil and El Salvador, coupled with Trubit’s fundraising success, demonstrate the growing momentum and interest in cryptocurrencies in Latin America. As the region continues to embrace digital assets, regulatory clarity and innovative solutions will play crucial roles in fostering further adoption and integration of crypto into various sectors of the economy. With each milestone reached, Latin America solidifies its position as a significant player in the global crypto landscape.

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