The New Crypto Order: Why Latin America Is Racing to Regulate Digital Wealth

• Mexico’s SAT now taxes crypto gains as virtual asset transfers, requiring detailed reporting in annual income declarations.
• Argentina, Chile, and Mexico lead regulatory progress, while Brazil, Peru, and Uruguay refine their pending crypto-asset legislation.

Governments across Latin America are establishing clearer regulations for cryptocurrencies as their use continues to expand in the region. Authorities seek to define the legal, fiscal, and financial responsibilities of individuals and companies that use or trade crypto assets. The objective is to maintain financial transparency and prevent money laundering or the financing of illicit activities, while acknowledging the growing role of crypto currencies in the regional economy.

In Mexico, cryptocurrencies are legally classified as virtual assets. The Tax Administration Service (SAT) requires both individuals and corporations to declare operations involving these assets. Income derived from buying and selling cryptocurrencies is treated as a transfer of goods and taxed under income tax laws.

For individuals, rates range from 10% to 37%, depending on total income, while for corporations the standard rate is 30%. Mining activities are also considered taxable income. The tax authority expects users to keep detailed records of each operation, including transaction dates, counterparties, and peso valuations. These must be reported in the annual tax return under the section for diverse income.

The regulatory framework seeks to make cryptocurrency activity traceable and compliant with fiscal obligations. Users who operate without proper documentation face penalties similar to those in traditional financial operations. Financial institutions and fintech companies integrating crypto asset services are also subject to oversight, aiming to preserve transparency in a market characterized by rapid technological change.

Across the region, the level of regulatory development varies. Mexico’s Fintech Law, enacted in 2018, remains a foundational reference, while Argentina and Chile approved updated frameworks between 2023 and 2024 that require registration and public reporting for virtual asset service providers. Peru, Uruguay, and Brazil are still finalizing regulations that address both financial inclusion and risk prevention. Most countries expect to consolidate comprehensive legal frameworks between 2025 and 2026, partly in response to recommendations from the Financial Action Task Force (FATF).

Anti–money laundering policies are a central element of the new regulatory architecture. The Mexican National Banking and Securities Commission (CNBV) obliges cryptocurrency service providers to register and implement monitoring mechanisms. In Peru, Decree 006-2023-JUS compels virtual asset service providers to report suspicious operations to the Financial Intelligence Unit.

Argentina’s Law 27.739, passed in 2024, created a public registry for crypto providers and imposed transparency and compliance standards. Chile followed a similar path through its Fintech Law 21.521, emphasizing corporate governance and risk management requirements for platforms handling crypto assets. Uruguay and Brazil are preparing comparable measures that will require due diligence and regular reporting to supervisory authorities.

Although the pace and structure of regulation differ among countries, there is a clear regional tendency toward uniform standards aligned with international guidelines. Governments aim to integrate the benefits of technological progress into formal economies while reducing exposure to illicit practices.

Cryptocurrency regulation in Latin America is evolving toward a model that balances fiscal discipline, user protection, and technological adaptability. As the region’s financial systems incorporate crypto payments and blockchain-based assets, oversight mechanisms will continue to expand.

The trend suggests a future in which crypto-related operations coexist with traditional finance under comparable legal and fiscal conditions—where compliance, rather than speculation, defines the role of crypto assets in the Latin American market.