USDT Dominates Brazilian Crypto Market, Bukele’s Administration Accused of Embezzlement

    Stablecoins like USDT are on the rise in Brazil, raising questions about cryptocurrency regulations. Meanwhile, allegations of embezzlement surround El Salvador’s use of funds for Bitcoin projects. Venezuelan exchanges unite in a new association amidst regulatory challenges.

    Stablecoins are making waves in Brazil, with USDT leading the charge. The Brazilian Tax Authority (RBF) notes the substantial presence of stablecoins like USDT, USDC, and BRZ in the nation’s cryptocurrency transactions. This development raises concerns about tax and regulatory implications for the crypto market in Brazil. Tether’s USDT, the market’s largest stablecoin, dominates the scene, accounting for over 80% of all transactions and moving a staggering 271 billion reals since 2019.

    In El Salvador, President Bukele’s administration faces allegations of misusing Covid-19 relief loans for Bitcoin-related projects. An investigation by OCCRP claims that a significant portion of a $600 million loan from the Central American Bank for Economic Integration (CABEI) intended for pandemic relief was diverted for Bitcoin initiatives. This controversy adds complexity to El Salvador’s adoption of Bitcoin as legal tender.

    Meanwhile, Venezuelan cryptocurrency exchanges have joined forces to create Acincrip, a new association. This move comes as the nation grapples with a seven-month industry shutdown, triggered by regulatory intervention and the arrest of the former head of Sunacrip, the national cryptocurrency regulator. The association aims to address regulatory challenges and promote cooperation within the Venezuelan crypto market.

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