Latam Insights: Regulators and Courts Move on Crypto in Brazil and Paraguay as Disaster Relief Hits Venezuela

Welcome to Latam Insights, a compilation of the most relevant crypto news from Latin America over the past week. In this edition, Brazil proposes a 24-hour holding period for stablecoin remittances, two illegal bitcoin miners get convicted in Paraguay, and Binance pledges a $3 million donation to earthquake relief efforts in Venezuela.

The bank also acknowledged that the holding period would not be absolute and that funds could be released in a shorter timeframe if the intermediating VASP manages to address the risks of the specific transaction before.

“The retention is exclusively precautionary in nature and is intended for risk analysis of the respective operation, not implying the definitive unavailability of assets,” the bank stressed.

Nonetheless, even as they were found guilty, the court suspended the execution of the sentence. Even so, the ruling was described as a milestone for the power company, which stressed that it would serve as a strong precedent given the nature of the case.

This is because one of the defendants, who held the contract with the power company at the location where the miners were discovered, failed to show that he did not know about the use of his property for these purposes, and was also affected by the ruling.

The organization revealed that it will distribute $3 million to users who have completed Proof of Address (POA) and Know Your Customer (KYC) procedures, indicating they reside in La Guaira, Distrito Capital, Miranda, Aragua, Carabobo, Falcón, and Yaracuy, areas that were most affected by the natural disaster.