Latam Insights: Unlicensed Crypto Exchanges Still Allowed to Operate in Brazil, Lightning Strikes Salvadoran Bitcoin ATM's

Welcome to Latam Insights, a compendium of Latin America’s most relevant crypto and economic news during the last week. In this issue: The Central Bank of Brazil confirms that unlicensed exchanges can still operate in the country; El Salvador will integrate Lightning Network transactions in its Chivo ATM network; and Trubit raises $6.25 million to expand crypto adoption in Latam.

Central Bank of Brazil Clarifies Exchanges Still Don’t Need Licenses to Operate

The Central Bank of Brazil issued a statement clarifying the state of the cryptocurrency regulation in the country regarding the operation of unlicensed exchanges. In its 40,874 communication, the bank revealed that the conditions and deadlines for virtual assets services providers (VASPs) to adapt to Brazil’s cryptocurrency law would be established in a normative act later.

Furthermore, João André Calvino Marques Pereira, head of the financial system regulation department of the bank, revealed that crypto platforms can still operate without a license during this period.

In the bank’s document, Calvino Marques stated:

Until the normative act on the matter comes into force, virtual asset service providers will be able to operate independently of prior authorization from the Central Bank of Brazil.

Salvadoran Bitcoin ATMs to Support Lightning Network

The ATMs of the Salvadoran Chivo network will integrate Lightning Network (LN) support. Matias Goldenhorn, CEO of Athena Bitcoin, the company that provides these ATMs to El Salvador, declared that they plan to have 100 Bitcoin ATMs supporting LN transactions by year’s end.

Nonetheless, Goldenhorn recognized that including LN support for all Bitcoin ATMs in El Salvador would take Athena at least two or three months more. Athena’s Bitcoin ATMs in other countries will be updated in 2024.

Only a small number of all the Bitcoin ATMs in the world have integrated LN transactions, so for Greenhorn, Athena’s move is a “revolution,” given that now Salvadoran users will be able to benefit from the low fees of the platform and the added privacy of not having their transactions registered on the Bitcoin blockchain.

Trubit Raises $6.25 Million to Expand Crypto Adoption in Latam

Galactic Holdings, the parent company of Trubit, a cryptocurrency exchange platform, raised $6.25 million in Series A funding round. Led by Galaxy Interactive and Dragonfly, the round will allow the company to expand its operation in Latam, focusing especially on payment services for retail and institutional customers.

Maggie Wu, cofounder and CEO of Trubit, thanked investors for their support, stating that the company was committed to “further expanding our presence in more Latin American countries to make cryptocurrency services accessible to everyone in their daily necessities, more simply and conveniently.”

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