Latam Insights: Regulators and Courts Move on Crypto in Brazil and Paraguay as Disaster Relief Hits Venezuela
Welcome to Latam Insights, a compilation of the most relevant crypto news from Latin America over the past week. In this edition, Brazil proposes a 24-hour holding period for stablecoin remittances, two illegal bitcoin miners get convicted in Paraguay, and Binance pledges a $3 million donation to earthquake relief efforts in Venezuela.
Brazil Proposes Mandatory 24-Hour Hold on Large Crypto Stablecoin Transactions
The institution introduced a notice of rulemaking to implement a 24-hour hold window for remittances and cross-border payments sent using stablecoins, allowing virtual asset service providers (VASPs) to complete due diligence procedures on these transactions. The hold period, applied to stablecoin transactions of over $10,000 in value, would be used by exchanges and service providers to conduct risk analysis and verify compatibility with the customer’s risk profile. The bank acknowledged that the holding period is not absolute and funds could be released sooner if the VASP addresses the risks earlier. ‘The retention is exclusively precautionary in nature and is intended for risk analysis of the respective operation, not implying the definitive unavailability of assets,’ the bank stressed.
Paraguay Convicts Two Bitcoin Miners to Jail Sentences for Large-Scale Energy Theft
The Paraguayan justice system has ruled against two individuals who allegedly used stolen energy to mine bitcoin by bypassing the metering system. On June 19, the National Power Administration of Paraguay (ANDE) announced that Cristian Daniel Jara Villalba and Ramon Martinez Morinigo were convicted of energy theft and sentenced to two years in jail. The court suspended the execution of the sentence, but the ruling was described as a milestone for the power company, serving as a strong precedent. One defendant, who held the contract with the power company at the location of the mining operation, failed to show he was unaware of the use of his property for these purposes.
Binance Pledges $3 Million in USDT to Aid Victims of Devastating Venezuela Earthquakes
Binance Charity has announced an initiative to help Venezuelans in affected zones. The organization will distribute $3 million to users who have completed Proof of Address (POA) and Know Your Customer (KYC) procedures, indicating they reside in the most affected areas: La Guaira, Distrito Capital, Miranda, Aragua, Carabobo, Falcón, and Yaracuy. The help will be distributed as 20 USDT vouchers redeemable on Binance’s platform rewards hub. ‘Users will receive the funds within a maximum of 30 days from the completion date of their POA,’ the exchange stressed.