Latam remains unprepared to deal with cryptocrime and fraud, according to GFI report – Emerging Markets Bitcoin News

Latam remains unprepared to deal with cryptocurrency-related crimes and fraud situations, according to a recent report issued by Global Financial Integrity (GFI), a Washington DC-based think tank. The document says that crypto regulation has failed to grow with the adoption of these new technologies and that governments have often failed to detect and punish crypto-related crimes.

GFI: Latam remains vulnerable to crypto-related crime

While the use of cryptocurrency has grown tremendously in Latam due to the unique economic situations and difficulties of the countries in the area, cryptocurrency regulation has not developed on par. This is one of the conclusions that a report titled “Cryptocurrencies: A Financial Crime Risk in Latin America and the Caribbean,” released on November 14, found.

Produced by Global Financial Integrity, a Washington DC-based financial think tank, the report examined the legal development of cryptocurrencies in Latin America and the Caribbean, focusing on countries with high crypto adoption such as Argentina, Brazil, Colombia, El Salvador and Mexico.

The report found several loopholes in the regulations of some of these countries that could allow criminals to use crypto to commit money laundering crimes that could go undetected by authorities. The study also notes that some of these countries still lack crypto-specific regulations to tackle more than just crypto taxation, given that Latam’s cryptocurrency use follows different trends compared to other regions.

Guidelines

According to the study, it is fundamental for these countries to understand that cryptocurrencies are a new asset class that requires to be studied in order to establish effective regulations, which take into account the needs of each of the countries of Latam. The marketing of campaigns that inform about crypto and the possible risks that users and investors may face while using these new currencies is another tool that authorities can use.

However, according to the report, one of the most important measures that these authorities must use has to do with the implementation of KYC/AML (Know Your Customer/Anti-Money Laundering) protocols among service providers, which can serve to identify possible threats.

In the same way, it is recommended to adopt the recommendations of international organizations such as the Financial Action Task Force (FATF), in connection with the interconnection of these agencies to cooperate and exchange data that could lead to the prosecution of suspected criminal cases.

What do you think of GFI’s latest report on the vulnerabilities facing Latam countries regarding crime related to cryptocurrency? Tell us in the comments section below.

Sergio Goschenko

Sergio is a cryptocurrency journalist based in Venezuela. He describes himself as late to the game, entering the cryptosphere when the price spike occurred during December 2017. He has a computer engineering background, lives in Venezuela and is influenced by the cryptocurrency boom on a social level, offering a different point of view on crypto success and how it helps the unbanked and underserved.

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