Bybit Achieves VASP Registration in Argentina: A New Era for Crypto in LATAM

This month highlights Bybit's recent registration as a Virtual Asset Service Provider (VASP) in Argentina, Yilport Holdings' strategic investment in El Salvador, and Paraguay’s Minister of Economy and Finance opposing punitive energy tariffs for cryptocurrency miners.

Bybit Registers as a Virtual Asset Service Provider in Argentina

Bybit, the second-largest cryptocurrency exchange globally by trading volume, has officially acquired registration as a Virtual Asset Service Provider (VASP) in Argentina. This registration with the Financial Information Unit (UIF) represents a significant advancement for the digital asset sector in the region.

• This registration enables Bybit to legally offer a complete range of digital asset services within Argentina.
• The exchange considers Argentina a strategic market, aiming to deliver solutions specifically tailored to local needs.

Ben Zhou, co-founder and CEO of Bybit, remarked, “This achievement represents an important step forward in our mission to provide accessible and secure digital asset services to users worldwide and underscores our commitment to combating financial crime. Bybit is dedicated to supporting Argentina’s economic growth and empowering its citizens through the payment capabilities and potential of blockchain technology.”

Earlier this year, Argentina’s National Securities Commission (CNV) required cryptocurrency operators to register with the VASP Registry within 45 days of its establishment. Bybit's new license also encompasses card services, further enhancing its offerings. In July, the company introduced the Bybit Card in Argentina, allowing users to seamlessly connect digital finance with everyday transactions.

El Salvador Secures $1.6 Billion Investment for Bitcoin City Port Development

El Salvador has successfully secured a strategic investment of $1.6 billion from Yilport Holdings, a prominent Turkish global port logistics company. This investment will transform the port of La Unión into a key component of the nation's ambitious Bitcoin City project. Located on the Pacific coast, this port is essential to El Salvador's vision of becoming a leading global cryptocurrency hub.

Yilport Holdings' Vision

Yilport Holdings, recognized for its port management operations across Europe, Asia, and the Americas, plans to elevate La Unión into a world-class facility. The upgraded port will:

• Support the logistics of Bitcoin City
• Serve as a strategic trade hub
• Connect El Salvador with major markets in Asia, North America, and Europe

Max Keiser, Senior Bitcoin advisor to President Bukele, hailed the announcement as a significant milestone for Bitcoin City. He emphasized that this investment lays a solid foundation for the city and enhances El Salvador's influence in the global cryptocurrency arena.

Economic Impact of Port Modernization

The modernization of the port is expected to have a substantial positive impact on the local economy:

• Creation of thousands of jobs
• Stimulation of regional growth and revitalization

Yilport's investment reflects confidence in El Salvador's logistical potential and fortifies the country's strategic position on global trade routes.

The port of La Unión, which was completed in 2008 with a $200 million investment, has remained underutilized due to a lack of interest from the private sector. Yilport’s involvement aims to transform this dormant project into a driving force for economic transformation in El Salvador, positioning it as a vital node in the international digital economy.

Retail Investors in Latin America Gain Access to Tokenized Real-World Assets

A new partnership between Backed and eNor Securities is set to revolutionize financial access for retail investors in Latin America. Announced on August 13, this collaboration enables individual investors in the region to invest in tokenized real-world assets (RWA).

Details of the Partnership

• Backed, a company specializing in RWA tokenization, has teamed up with eNor Securities, a Salvadoran stock exchange, to introduce these assets to Latin America's retail market.
• This partnership includes access to:
• Coinbase stocks
• BlackRock’s S&P 500 ETF holdings
• Corporate and government bond ETFs, available on the eNor platform

Backed’s offerings are structured as bTokens, representing ownership of tokenized assets that are fully backed by underlying securities held by third-party custodians. These tokens comply with stringent European Union prospectus regulations, ensuring that holders retain direct rights to the assets they represent. To date, more than $52 million in bTokens have been issued across eight different blockchains.

Paraguay's Stance on Cryptocurrency Mining

Key Points:

• Carlos Fernández Valdovinos, Paraguay’s Minister of Economy and Finance, opposes punitive energy prices for crypto miners.
• He believes that imposing high prices could deter the growth of the mining industry in Paraguay.
• Valdovinos emphasized the need for a fair balance between industry growth and the financial needs of the National Electricity Administration (ANDE) for infrastructure investments.

Future of Cryptocurrency Mining in Paraguay

• Paraguay is considering legalization and regulation of cryptocurrency mining.
• Javier Giménez, a senior government official, has mentioned plans to sell energy directly to mining companies. This aims to establish Paraguay as a regional hub for cryptocurrency mining.
• ANDE has refuted rumors that mining companies are leaving the country, with current data indicating that there are 72 contracted mining companies in operation.
• These companies have the potential to generate up to $100 million in revenue.

• The ongoing discussions reflect Paraguay's need to promote economic growth through cryptocurrency mining while ensuring sustainable energy management.
• The government's approach aims to foster a supportive environment for miners without compromising the infrastructure needs of the country.

Ecuador’s Central Bank Reaffirms Cryptocurrency Ban

Ecuador’s Central Bank (BCE) has made it clear that cryptocurrencies remain banned and do not hold legal tender status in the country. This reaffirmation comes in light of increasing discussions regarding Worldcoin (WLD), a project that offers cryptocurrency in exchange for iris scans.

Key Points from BCE's Statement

• Legal Tender:
• According to Articles 94 and 99 of national law, the US dollar is the only legal currency in Ecuador.
• Cryptoassets are neither legal tender nor an authorized means of electronic payment.
• Recognized Payment Methods:
• The only accepted forms of payment in Ecuador include:
• Physical currency
• Electronic transfers
• E-wallets
• Credit and debit cards
• Prepaid cards
• Prohibition of Unauthorized Payment Methods:
• The BCE warned that using unauthorized payment methods is prohibited under Article 98 of the COMF.
• Any identified infractions will be reported to the Attorney General’s Office for investigation and potential sanctions.

Context of Cryptocurrency in Ecuador

• Despite the ban, Ecuador ranked eighth in Latin America, with $7 billion in cryptocurrency transactions recorded between 2022 and 2023.
• The BCE noted that these transactions did not impact the national financial system, as most occurred on exchanges without affecting cash flow or reserves.

Worldcoin and Public Reaction

• The rising presence of Worldcoin in Ecuador has drawn considerable attention, especially its method of offering 30∗incryptocurrencyforanirisscan,whichcanbeconvertedto∗20 in US dollars.
• The project has seen large crowds in cities like Guayaquil, raising questions about its legality and compliance with national regulations.

Risks of Cryptocurrency Investments

• The BCE has cautioned citizens about the inherent risks and volatility associated with investing in cryptocurrencies.

This situation highlights the ongoing tension between emerging technologies and established financial regulations in Ecuador.

The situation regarding Binance in Venezuela has indeed become quite challenging for users. Here’s a summary of the current developments:

1. Access Restrictions: Venezuelan users are facing restricted access to Binance's web platform due to the government's tightening of internet controls. This has been confirmed by Binance in a statement shared on X (formerly Twitter).
2. VPN Usage: In response to these restrictions, many users are utilizing virtual private networks (VPNs) to bypass the limitations. It's important to note that the mobile app for Binance remains operational, allowing users to continue trading.
3. Expert Advice: Prominent figures in the Venezuelan crypto community, such as Ernesto Contreras, have advised users to consider self-custody of their funds. He recommends downloading wallets and protecting seed phrases to ensure the safety of assets.
4. Economic Context: These restrictions come at a critical time when many Venezuelans are increasingly relying on cryptocurrencies as a means to combat the ongoing economic crisis, characterized by hyperinflation and instability.
5. Recent Developments: This situation follows a recent ban on X in Venezuela, initiated by President Nicolás Maduro after a public dispute with Elon Musk. The ban is part of broader efforts to control information and communication within the country.

As the Latin American crypto scene continues to evolve, these developments underscore the region's growing influence in the global market.