Mexico Leads Latin America in Travel Rule Adoption, Argentina Behind
A study conducted by the Latin American Financial Action Task Force (GAFILAT) has found that Mexico is leading the way in the adoption of the Travel Rule in Latin America, while Argentina is lagging behind. GAFILAT is an intergovernmental organization comprising 18 Latin American countries and is affiliated with the global anti-money laundering watchdog, the Financial Action Task Force (FATF).
- Mexico has adopted FATF guidelines ahead of most other nations in the region.
- The country has developed secondary regulations to comply with FATF recommendations.
- Brazil, Chile, and El Salvador are also making good progress with FATF guideline adoption.
- Cuba, Nicaragua, and Paraguay have made modest progress in this regard.
- Argentina, Uruguay, Costa Rica, Guatemala, Honduras, Panama, Peru, and the Dominican Republic have not attempted to regulate their crypto sectors.
GAFILAT’s report commended Mexico for its cooperation with the fintech industry on regulatory matters. In 2021, the organization praised Mexico for improvements in applying regulatory standards and adopting three-quarters of the FATF’s 40 protocols. While Brazil, Chile, and El Salvador were also recognized for their progress, Argentina and other countries were warned for their lack of regulation.
Argentina Urged to Comply with FATF Recommendations
Argentina has been singled out by GAFILAT as one of the countries that has not attempted to regulate its crypto sector. The government has indicated its willingness to remedy this situation, especially as it seeks financial aid from the International Monetary Fund (IMF). The nation has already started cracking down on exchanges and plans to charge crypto miners the highest band of energy tariffs. The head of the National Securities Commission, SebastiΓ‘n Negri, has emphasized the urgent need for Buenos Aires to comply with FATF recommendations.
Hot Take
Mexico’s proactive approach to crypto regulation sets it apart in Latin America, positioning the country as a leader in adopting FATF guidelines. However, the report’s warning to Argentina and other countries highlights the need for comprehensive regulation to combat money laundering and ensure the integrity of the crypto sector. As crypto continues to gain mainstream recognition, governments must prioritize regulatory measures to foster a safe and transparent environment for investors and users.
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