Crypto Regulation in LatAm: Licenses, AML and Multi-Jurisdiction

Crypto regulation in Latin America: licenses, AML and multi-jurisdiction

Overview

How do you operate in crypto and web3 when Latin America's regulators wake up all at once? In this MERGE Madrid talk, CryptoMarket explains why “LatAm doesn't exist” as a regulatory unit, how each regulator interprets the rules based on its own history, and which cross-cutting issues to watch to operate safely.

What you'll learn

• “LatAm doesn't exist”: why it is a geographic reference, not a cultural or regulatory one
• Crossborder vs. multi-jurisdiction: two business models with different costs and risks
• Activities and proportionality: how what you declare defines the requirements and tier
• AML, CFT and the travel rule: the real operating cost of compliance and the provider challenge
• Cybersecurity and data: operational continuity and server localization
• Consumer protection and taxes: abusive clauses and digital-services taxes

Session summary

A continent waking up: it argues that Latin America has entered a collective regulatory wave in just a few years and that, although the rules “smell” similar to frameworks like MiCA, what changes is interpretation: each regulator reads the rule through its country's cases and “pains”.

Crossborder vs. multi-jurisdiction: it distinguishes between operating online with an offshore parent that subcontracts services (crossborder) and setting up local entities with accounts, registrations and licenses (multi-jurisdiction), with more cost and bureaucracy but national presence.

Activities and proportionality: it stresses that requirements depend on the declared activities (for example, custody if funds sit in the company's or a third party's wallets) and on proportionality criteria, where fintechs move up tiers easily due to their many-users model.

AML and the travel rule: it warns about the real operating cost of complying with anti-money-laundering rules and the travel rule, which usually requires several providers; it cites cases like Peru or Chile, where the travel rule is already being requested.

Sub-licenses and cybersecurity: it mentions sub-licenses (with the case of Argentina's CNV and the local-partner requirement) and cybersecurity, often found in general rules, with trends such as operational-continuity certifications and server localization.

Consumer, taxes and collaboration: it warns about abusive clauses banned under consumer protection (such as reversing orders, which can be market manipulation) and about taxes on digital services from abroad; it closes by recommending reliance on local lawyers and compliance officers and collaboration through fintech associations.

Watch the full talk

Watch the full recording on MERGE's YouTube channel, with CryptoMarket on crypto regulation in Latin America.

FAQs

What is the difference between crossborder and multi-jurisdiction?
Crossborder is operating online with a parent outside the country that subcontracts services; multi-jurisdiction is setting up local entities with accounts, registrations and licenses, with more cost but national presence.

Why do declared activities matter so much?
Because they determine the requirements and regulatory tier; misdeclaring (for example, denying you provide custody) can cause serious problems with the regulator.

Why are “similar” rules applied differently in each country?
Because, according to the talk, each regulator interprets the rule through its country's cases and priorities (corruption, tax evasion, etc.).

Is this legal advice?
No. This content is informational and summarizes what was presented in the talk; it does not constitute legal or compliance advice. Consult a professional for your specific situation.