Latin America’s crypto scene continues to evolve, with new products and regional expansions highlighting its rapid growth.
This week’s most notable news is that Brazil has proposed a new regulation to bring cryptocurrencies under financial market tax rules.
On the other hand, stablecoins such as USDT are increasingly being used in Bolivia in daily transactions, with some stores now showing pricing in USDT rather than the local currency.
Brazil moves to tax crypto assets
On Wednesday, the Brazilian federal government proposed a temporary legislation that drastically alters taxation on financial investments by expressly bringing cryptocurrencies such as Bitcoin and stablecoins under general financial market tax rules for the first time.
The proposal replaces an unpopular IOF directive and seeks to increase public revenue without raising direct taxes on individuals, a policy supported by the Ministry of Finance.
Under the new law, crypto assets will be taxed at a single rate of 17.5%, regardless of how long they are kept — a significant departure from the existing income tax scheme, which benefited long-term investors.
The legislation also eliminates tax breaks for traditional assets such as LCIs and LCAs, raises corporate tax obligations for fintechs and crypto platforms, and permits profits and losses from all financial assets to be deducted in annual tax returns.
USDT gains ground in Bolivia
Tether CEO Paolo Ardoino has noted the growing use of USDT in Bolivia, where economic insecurity and currency depreciation have prompted residents to seek more solid financial instruments.
As a result, stablecoins such as USDT are increasingly being used in daily transactions, with some stores now showing pricing in USDT rather than bolivianos.
Financial institutions, notably the Banco de Crédito de Bolivia, have begun to offer fee-free international USDT transfers, showing a growing acceptance of digital assets.
The inclusion of USDT into Bolivia’s financial environment represents a subtle but significant shift.
Businesses, such as candy and snack shops, now price items in USDT, while banks like Banco Bisa provide custody and transaction services for the stable token.
Tether’s success in Bolivia is redefining financial behaviour. It may pave the path for future cryptocurrency adoption, including the possible establishment of a central bank digital currency (CBDC), the “Boliviano Virtual.”
Crypto remittances surge in Latin America
According to a recent research by Chainalysis and AUSTRAC, crypto remittances in Latin America have increased by 40% in the last year.
Argentina received the most cryptocurrency remittances in the region ($91 million) in 2024, followed by Mexico ($12 million).
This trend demonstrates a shift toward speedier, lower-cost cross-border payments via cryptocurrencies such as Bitcoin and stablecoins, particularly in countries undergoing economic troubles.
Latin America is now ranked 14th in the world for cryptocurrency ATM installations, with Mexico and Brazil adding 90 and 70 machines, respectively.
El Salvador continues to have the lowest transaction fees, boosting cryptocurrency remittances, which account for approximately 24% of its GDP.
Access to digital assets is becoming more popular, with platforms like CryptoMKT offering real-time conversion to local currency and CoinFlip’s new kiosks debuting in Mexico.
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