LATAM Crypto Roundup: Binance Secures VASP Registration in Argentina, Ripple Expands in Brazil, and More

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 features Binance’s VASP registration in Argentina, Ripple’s expansion into Brazil, and other major developments.

Binance Secures VASP Registration in Argentina

Binance, one of the largest cryptocurrency platforms globally, has reached a major milestone in Argentina by registering as a Virtual Asset Service Provider (VASP) with the country’s National Securities Commission (CNV). This registration strengthens Binance’s commitment to adhering to regulatory frameworks, not only in Argentina but around the world. 

Argentina becomes the 20th country where Binance has secured a license or regulatory registration, following the company’s recent progress in key jurisdictions like India, Kazakhstan, and Indonesia. Binance has already established a presence in other major markets, having secured licenses in Dubai, France, Japan, and El Salvador, which continues to solidify its global footprint.

With this VASP registration, Argentine users can now fully access Binance’s suite of services and tools through both its website and mobile app. This move will make it easier for local users to engage in the cryptocurrency ecosystem, offering them the security of a platform that upholds the highest standards of compliance and protection.

“Argentina is a key market for Binance. We will continue to work closely with the local authorities to develop the industry in the safest and most sustainable way possible. This is for the benefit of the crypto community and society in general,” said Guilherme Nazar, Binance’s director for Latin America.

Read more: How To Trade Crypto on Binance Futures: Everything You Need To Know

Nazar also highlighted Binance’s belief in proactive regulation as essential for the orderly and safe evolution of the cryptocurrency industry, a principle that is central to the company’s ongoing global expansion efforts. This regulatory breakthrough further demonstrates Binance’s commitment to creating a secure, compliant environment for its users while advancing the development of the global cryptocurrency market.

Ripple Expands in Brazil Through Partnership with Mercado Bitcoin

Ripple has launched Ripple Payments in Brazil through a partnership with local exchange Mercado Bitcoin. This collaboration will allow businesses to explore cross-border payments using Ripple’s end-to-end blockchain-based payment solution.

Mercado Bitcoin, the first in Latin America to use Ripple’s solution, will enhance its internal treasury between Brazil and Portugal and offer international payments for retail customers. These customers will be able to make payments in reais via a non-resident account, with funds transferred globally 24/7 and settled within minutes.

“Ripple Payments offers capabilities that are important to crypto businesses, enabling them to streamline operations, optimize liquidity, and improve margins through real-time payment settlement. We are delighted to partner with Mercado Bitcoin, a crypto market leader with more than a decade of experience in providing tokenized services to Brazil,” said Silvio Pegado, CEO of Ripple in Latin America.

Read more: XRP ETF Explained: What It Is and How It Works

Ripple Payments will focus on small and medium-sized enterprises, providing optimized onboarding, global access to over 80 payment markets, and 24/7 liquidity. Jordan Abud, Head of Banking at Mercado Bitcoin, added, “The partnership allows Bitcoin Market to take another step towards internationalization…offering lower costs and a more complete platform.”

Ripple Payments currently covers 80 payment markets, with 90% coverage of the FX market and more than $50 billion in processed volume. For now, the service is available to Mercado Bitcoin customers in Brazil and Portugal.

IMF Urges El Salvador to Limit Public Sector Exposure to Bitcoin

The International Monetary Fund (IMF) has once again urged El Salvador to limit its public sector exposure to Bitcoin and to strengthen oversight of its regulatory framework. Despite the country’s notable 3% GDP growth in 2024, the IMF continues to express concerns about the risks posed by cryptocurrency volatility.

Since El Salvador made Bitcoin legal tender, the IMF has conducted several assessments, maintaining that the risks associated with Bitcoin’s price swings remain significant. While the IMF has adopted a more moderate stance compared to earlier years, it still insists on stricter regulations to ensure economic stability.

“We have recommended reducing the scope of the Bitcoin law, strengthening the regulatory framework and oversight of the Bitcoin ecosystem, and limiting public sector exposure to Bitcoin,” said Julie Kozack, IMF communications director, quoted by Reuters.

Read more: Who Owns the Most Bitcoin in 2024?

President Nayib Bukele, currently on an official visit to Argentina, remains a strong advocate for Bitcoin, though he acknowledges that adoption rates in El Salvador have fallen short of his expectations. He expressed a desire for greater acceptance among Salvadorans but emphasized that adopting the cryptocurrency has been a free choice for citizens.

Despite the IMF’s warnings, El Salvador continues to purchase Bitcoin through its Dollar Cost Averaging (DCA) strategy. To date, the government has accumulated 5,892.76 BTC, valued at approximately $360.97 million.

Nubank to Reduce Crypto Transaction Fees

On October 2, Brazil’s Nubank Cripto announced plans to lower the fees for cryptocurrency transactions in its app, with the changes set to roll out gradually through October and November. Under the new system, transaction fees will be based on the volume of customer trades, with potential reductions of up to 60%.

According to Nubank, the fee for buying and selling cryptocurrencies could drop to as low as 0.6% per transaction. Customers will have a 45-day cycle to accumulate transactions, after which the fee will be adjusted according to their trading volume. The new system improves upon the previous average rate of 1.6%, which had already decreased to 0.8% between March and September 2024.

The volume tiers Nubank will use to determine fees are as follows:

• Between 0 and 99 reais
• 100 to 1,999 reais
• 2,000 to 9,999 reais
• More than 10,000 reais

Read more: Crypto vs. Banking: Which Is a Smarter Choice?

This fee structure rewards high-volume traders with lower transaction costs, a common practice in the crypto industry, known as “transaction tiers.” Major platforms like Binance also use a similar model. Nubank Cripto expects all customers to access the new system, though the implementation will be gradual.

Transaction fees, essential for on-chain processes, incentivize miners or nodes to validate transactions. While networks like Ethereum have struggled with high fees for years, Nubank Cripto’s new system aims to offer a more user-friendly experience for its customers.

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.