Bybit Registers as a VASP in Argentina

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 Bybit’s recent registration as a Virtual Asset Service Provider (VASP) in Argentina, Yilport Holdings’ strategic investment in El Salvador, and Paraguay’s Minister of Economy and Finance opposing punitive energy tariffs for cryptocurrency miners.

Bybit Registers as Virtual Asset Service Provider in Argentina

Bybit, the world’s second-largest cryptocurrency exchange by trading volume, has officially registered as a Virtual Asset Service Provider (VASP) in Argentina. The registration with the Financial Information Unit (UIF) marks a major step for the digital asset industry in the region.

This registration lets Bybit legally provide a full range of digital asset services in Argentina. The exchange views it as a strategic market, aiming to offer solutions tailored to meet local needs.

“This achievement marks an important step forward in our mission to provide accessible and secure digital asset services to users around the world and our commitment against financial crime,” said Ben Zhou, co-founder and CEO of Bybit. “Bybit is committed to supporting Argentina’s economic growth and empowering its citizens through the payment capabilities and potential of blockchain technology.”

Read more: Bybit Review 2024: Review of Its Security, Fees, and Features

Earlier this year, Argentina’s National Securities Commission (CNV) mandated that cryptocurrency operators register with the VASP Registry within 45 days of its creation. Bybit’s new license also extends beyond VASP operations to include card services. In July, the company launched the Bybit Card in Argentina, enabling users to easily bridge digital finance with everyday transactions.

El Salvador Secures $1.6 Billion Investment for Bitcoin City Port Development

El Salvador has obtained a strategic investment of $1.6 billion from Yilport Holdings, a leading Turkish global port logistics company, to develop the port of La Unión into the cornerstone of its ambitious Bitcoin City project. This port, located on the Pacific coast, is crucial to El Salvador’s goal of becoming a global cryptocurrency hub.

Yilport Holdings, known for port management across Europe, Asia, and the Americas, plans to make La Unión a world-class facility. The upgraded port will support Bitcoin City’s logistics and act as a strategic trade hub. It will connect El Salvador to major markets in Asia, North America, and Europe.

Max Keiser, Senior Bitcoin advisor to President Bukele, celebrated the announcement as an important milestone for Bitcoin City. He also highlighted that this investment solidifies the city’s foundations and enhances El Salvador’s role in the global crypto stage.

“Bukele’s Turkey trip paid off bigly! Qatar on deck,” Keiser hinted.

Read more: Who Owns the Most Bitcoin in 2024?

The port’s modernization, beyond Bitcoin City, is set to significantly boost the local economy. It will create thousands of jobs, driving growth and revitalizing the region. Yilport’s investment demonstrates confidence in El Salvador’s logistical potential and strengthens the country’s position on global trade routes.

The port of La Unión, completed in 2008 with a $200 million investment, remained underutilized due to private sector disinterest. Yilport’s involvement now aims to turn this dormant project into a catalyst for economic transformation in El Salvador. It positions the port as a crucial node in the international digital economy.

Retail Investors in Latin America Gain Access to Tokenized Real-World Assets

A recent alliance between Backed and eNor Securities is set to transform financial access for retail investors in Latin America. The partnership, announced on August 13, allows individual investors in the region to invest in tokenized real-world assets (RWA).

Backed, a firm specializing in RWA tokenization, joined forces with eNor Securities, a Salvadoran stock exchange, to present these assets to Latam’s retail market. This partnership brings Coinbase stocks, BlackRock’s S&P 500 ETF holdings, and corporate and government bond ETFs, to the eNor platform.

Read more: How To Invest in Real-World Crypto Assets (RWA)?

Backed structures its offerings as bTokens, representing ownership of tokenized assets fully backed by underlying securities held by third-party custodians. These tokens comply with stringent European Union prospectus regulations, ensuring that holders maintain direct rights to the assets they represent. As of now, more than $52 million in bTokens have been issued across eight different blockchains.

Paraguay’s Minister of Economy Opposes Punitive Pricing for Crypto Mining

Carlos Fernández Valdovinos, Paraguay’s Minister of Economy and Finance, has voiced his opposition to imposing punitive energy prices on miners. Valdovinos recently stated that such measures could deter the growth of the mining industry in the country.

“I do not agree with putting a punitive price that will scare away cryptocurrency mining,” the minister said in an interview with ABC media. However, he stressed the need to strike a fair balance, noting that the National Electricity Administration (ANDE) requires resources for infrastructure investments.

Recent reports by BeInCrypto indicate that Paraguay is considering the legalization and regulation of cryptocurrency mining. Javier Giménez, another senior government official, mentioned plans to sell energy directly to mining companies, aiming to position Paraguay as a regional hub for this activity.

Read more: Is Crypto Mining Profitable in 2024?

As the country works to formalize the sector, ANDE has dismissed rumors that mining companies are leaving Paraguay. According to ANDE President Felix Sosa, the country currently hosts 72 contracted mining companies, which could generate up to $100 million in revenue.

The ongoing dialogue highlights Paraguay’s balancing act between promoting economic growth through cryptocurrency mining and ensuring sustainable energy management.

Ecuador’s Central Bank Reaffirms Cryptocurrency Ban 

Ecuador’s Central Bank (BCE) has reiterated that cryptocurrencies are banned and do not hold legal tender status in the country. The statement comes amid growing discussions around Worldcoin (WLD), a project sparking debate for offering cryptocurrency in exchange for iris scans.

The BCE highlighted that, according to Articles 94 and 99 of national law, the US dollar is the only legal currency in Ecuador. Cryptoassets are neither legal tender nor an authorized means of electronic payment. Despite this, Ecuador ranked eighth in Latin America, receiving $7 billion in cryptocurrency transactions between 2022 and 2023.

The Central Bank stated that the only recognized payment methods include physical currency, electronic transfers, e-wallets, credit and debit cards, and prepaid cards. Digital assets are not recognized by Ecuadorian law.

“The BCE reminds individuals and businesses that cryptoassets are not legal tender nor an authorized means of payment in Ecuador. The use of unauthorized payment methods is prohibited under Article 98 of the COMF. If identified, the BCE will report such activities to the Attorney General’s Office for investigation and possible sanctions,” the statement clarified.

Read more: Crypto Regulation: What Are the Benefits and Drawbacks?

The statement follows the rising presence of Worldcoin in Ecuador, where its rapid growth has attracted attention. Without proper licensing, the project drew crowds in Guayaquil, where people lined up to scan their irises in exchange for $30 in cryptocurrency, convertible to $20 in US dollars.

The BCE clarified that the reported $7 billion in cryptocurrency transactions, according to Chainalysis, did not affect the national financial system, indicating that most transactions occur digitally on exchanges without influencing cash flow or reserves. The bank warned citizens of the inherent risks and volatility in cryptocurrency investments.

Binance Faces Web Restrictions in Venezuela

Venezuelan users are now grappling with restricted access to Binance, the world’s largest cryptocurrency exchange by trading volume, as the government tightens its internet control. Binance confirmed these challenges in a recent statement shared on X (formerly Twitter), acknowledging difficulties in maintaining access for Venezuelan users.

“Like several websites of companies from different segments in Venezuela, including social networks, Binance pages have been facing access restrictions,” the statement read.

In response, many users have turned to virtual private networks (VPNs) to bypass the restrictions. Reports show that the issue affects only Binance’s web platform, while the mobile app continues to operate normally. Ernesto Contreras, a prominent figure in Venezuela’s crypto scene, advised users not to panic, recommending the use of non-US VPN locations and urging self-custody of funds.

“Also, if you are an expert, it is time to start self-custody! Download your wallet and try to store your funds yourself (Make sure to protect your seed phrase) […] Take advantage of learning, and everything will be fine!” Contreras suggested.

Read more: 7 Best Binance Alternatives in 2024

The restrictions come at a critical time, as Venezuelans increasingly rely on digital currencies to counter the country’s economic crisis. Cryptocurrency adoption in Venezuela has surged, offering a refuge from hyperinflation and economic instability.

This development follows the recent ban on X in Venezuela after a public clash between President Nicolás Maduro and X owner Elon Musk. Amid escalating tensions after a disputed election, Maduro ordered the telecommunications regulator to block X for ten days, accusing Musk of inciting division and unrest.

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.