The leading cryptocurrency stories in Latin America this week point to a region in transition. Fintech giant Revolut launched full banking operations in Mexico.
In Venezuela, Interpol carried out a major crackdown on a cross-border cryptocurrency scam linked to Generation Zoe.
Meanwhile, El Salvador strengthened its Bitcoin strategy by introducing new tax incentives for foreign investors.
El Salvador doubles down on its Bitcoin bet
By eliminating capital gains taxes on Bitcoin and other cryptocurrencies, El Salvador is reinforcing its position as a Bitcoin-friendly country.
Aimed at attracting foreign investment and digital asset innovation, the legislation targets overseas investors and offers tax incentives to foreigners who bring more than three Bitcoins into the country.
The move builds on Bitcoin’s adoption as legal tender in 2021 and reinforces President Nayib Bukele’s long-term cryptocurrency strategy.
The government is repositioning El Salvador as a global hub for cryptocurrency investment through bold fiscal incentives, even as domestic use of cryptocurrency for remittances has declined.
Interpol arrest in Venezuela signals a major break in the Generation Zoe crypto scam
Rosa María González Rincón, a key figure in the international cryptocurrency pyramid fraud known as Generación Zoe, was apprehended by Interpol agents in San Cristóbal, Tõira.
The arrest, enabled by international cooperation and intelligence efforts, marks a significant development in one of the largest cryptocurrency fraud cases in Latin America.
The scheme used bots and fake trading tools to promise unrealistic returns.
A central operational link in the network, González Rincón was promoted as an expert in cryptocurrency trading and logistics within the fraudulent operation, which targeted thousands of investors in Argentina, Chile, Uruguay, Spain, Mexico, and other countries, with estimated losses ranging from $100 million to $300 million.
Her detention follows earlier convictions in Argentina, including a 12-year prison sentence for founder Leonardo Cositorto on charges of fraud and illegal association.
Revolut launches full banking operations in Mexico
Revolut, a UK-founded fintech company, has completed its testing phase and opened its first bank outside Europe by formally launching full banking operations in Mexico.
With a population of 130 million and an expensive, bureaucratic legacy banking system, Mexico offers an ideal environment for Revolut’s fully digital business model, which focuses on low costs and app-based services.
By entering the market with a full banking licence, more than $100 million in capital, and notably strong capital ratios, Revolut signalled stability in a fintech-wary environment.