What Crypto Credit Cards in Latin America Will Mean for the Industry

What Crypto Credit Cards in Latin America Will Mean for the Industry

Cryptocurrency broker-dealer, Binance, has paired with Mastercard to develop a crypto credit card issued in Argentina. This partnership will make Argentina the first South American country to utilize a money services business, allowing main street customers to pay in Bitcoin. The blockchain technology behind the Binance Mastercard converts cryptocurrency to fiat for each transaction without having to deal with exchanges and conversions; it’s cryptocurrency in a familiar and easy-to-use modality—a credit card. Crypto professionals are pointing toward South America as the next crypto hub, and this partnership between Mastercard and Binance in Argentina is only furthering this point.

David Szalyga, a corporate attorney at Scarinci Hollenbeck, LLC, states: “Cryptocurrency and blockchain tech adoption has accelerated in South America over the last 12 months. Transacting in crypto offers a level of freedom and predictability with direct access to global markets that typically aren’t available to citizens of those countries. Scarinci Hollenbeck, LLC has been working with cross-border fintech firms with government contracts and is making practical use of blockchain tech in everyday life.”

South American governments are accepting and welcoming to the innovation of cryptocurrency in financial services and have specifically created a political environment where blockchain integration and adoption will only accelerate. Cryptocurrencies provide a very attractive and accessible avenue for underserved populations to have access to a decentralized international financial system and international commerce.

The challenge in the next few years in the region is grappling with an evolving and often ambiguous array of laws in fields such as IP protection, data privacy, banking, and financial regulatory compliance, to name a few.  Regulatory predictability in the region, which will be compelled to develop in time, would ultimately reduce volatility, encourage more significant investment into the region, and perhaps catapult many South American economies towards economic stability.

Startup financial, property, and legal technology firms looking to innovate and develop in the region will need to be diligent and proactive with their compliance, especially if they are operating in the United States.

If your firm is involved or looking to become involved in the evolving crypto industry in South America, you should seek experienced corporate regulatory counsel. Contact the attorneys at Scarinci Hollenbeck, LLC at (201) 896-4100 or email info@sh-law.com to schedule your consultation.