said that the nation’s crypto markets are a top priority – but it has the matter must first of all undertake wider financial market reforms.
Mexico is leading the Latin American region in taking action for Travel Rule adoption had been asserted by the Latin American Financial Action Task Force (GAFILAT). 18 LATAM countries are members to the Task Force (FATF) and have been recommended to establish Travel Rule in their respective countries against decentralized currencies. The major guidelines for the sector of cryptocurrency have been came forward through these orders. Globally, the implementation of the provision of sharing sender details can be easily found out being brought into law in countries including South Korea. Updating the KYC (Know Your Customer) protocols is another idea proposed by FATF to temper down anonymous crypto transactions.
Mexico Ahead of The Curve: Latin American Region Embraces Travel Rule Adoption
Mexico is “leading the way” in Latin America’s Travel Rule adoption drive, a recent study by the Latin American Financial Action Task Force (GAFILAT) has concluded; the findings suggesting other regional countries have, meanwhile, ’lagged behind’ in the same state of affairs. Comprising of 18 countries affiliated to the global anti-money laundering ‘watchdog’, the Financial Action Task Force (FATF), the Travel Rule requires virtual asset service providers (VASPs) to share sender-related records and other data when making coin transfers to one another’s platforms.
In June 2021, the global body ascertained Mexico had given great importance to following FATF’s suggestions, which in large part include doing their upmost to succeed in pliant with and enforce know your customer (KYC) protocols and for robust, secondary regulations aimed at FATF observation and command. Echoing similar acclaim in 2019 for efforts related to about 75% of technical FATF setups, the nation is clearly ahead of the pack given the noticeable yield to encourage crypto trades via lawful measures.
Another trio of countries that have moved towards regulatory regulatory compliance during remain Brazil, Chile and Uruguay. Cuba, Nicaragua and Paraguay also gained positive recognition for “Starting” protocols rooted in the FATFs directions. Recently, Colombia, Ecuador and Bolivia were quick to originate regulatory standards for different demanded concessions directed towards VASPs. Their challenges sound simple enough; as was the condemn as faced by the handful of countries unable to adopt FATF directed Regulatory Markings- most notably little progress from the Argentinian Government which recently began to look for other financing besides the IMF as a factor of overhauling their crypto sectors.
Our roundup comes to a conclusion with Uruguay, Costa Rica, Guatemala, Honduras, Panama, Peru and the Dominican Republic ending at the bottom the list of compliance constraints; all afraid of coming up against the mammoth task of legislating when its comes to their specific representation of crypto trading. It essentially stems down to the shortage of efficient market supervisory measures across board- a goal amongst authorities actively taking action to marry digital assets with centralized tradition. No matter the pace, following FATF markers will doubtlessly prove to be imperative for the era of mass crypto adoption forging ahead.
