Welcome to Latam Insights, a compilation of the most relevant crypto news from Latin America over the past week. In this week’s edition, the Brazilian government is preparing to introduce a decree to pave the way for taxing cryptocurrency flows, Venezuela offers gas bitcoin mining opportunities, and new Libra revelations arise.
Latam Insights: Brazil Prepares to Tax Crypto Flows, Venezuela Offers Flared-Gas Bitcoin Mining Opportunities
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Brazil Prepares to Tax Cryptocurrency Flows
The Brazilian government is in the process of building a legal framework to apply the tax on Financial Operations (IFO) on cryptocurrency and stablecoin flows.
The Ministry of Finance is preparing to issue a decree equating cryptocurrency transactions with the exchange of foreign currency, paving the way to tax these flows. According to Valor Económico, the ministry will put the document to public consultation to measure the impact of such an action, which will surely change crypto usage trends in the country.
The proposal to tax crypto and stablecoin flows stemmed from the Central Bank of Brazil’s classification of some of these operations as foreign exchanges last year. Since then, the Ministry of Finance announced that it was working on a set of measures to curb the use of stablecoins to avoid taxation.
Analysts: Venezuela’s Oil Industry Resurgence May Precede a Flared- Gas Bitcoin Mining Boom
With the recent opening of Venezuela’s oil industry, speculation has surged about the use of flared gas to power bitcoin mining facilities in the country.
While the country has 6,000 cubic kilometers of gas, the ninth nation with the most proven reserves in the world has to flare much of it to the atmosphere due to the unfeasibility of exploiting it. Estimates put this number at nearly to 25% of Venezuela’s gas production.
Demerson David, a local bitcoin miner, told Criptonoticias that using this gas to mine bitcoin was not only possible but a strategic opportunity for the nation to take advantage of resources that would be wasted otherwise.
He stated:
“Following models like those in Argentina, we could install modular plants at the wellhead to generate electricity immediately, injecting direct capital into the national economy.”
Libra Case: Confidential Agreement Between President Milei and Hayden Davis Revealed
More revelations regarding President Milei and the party that allegedly launched Libra, a token focused on aiding Argentine companies that morphed into a billionaire rugpull, have arisen.
Recently, local newspaper Clarin reviewed a document linking both President Javier Milei and Hayden Davis, CEO of Kelsier Ventures, two weeks before the launch of Libra. The agreement establishes Davis, who was part of the launch of Libra, as a blockchain and artificial intelligence (AI) advisor to Milei.
In the document, Davis stated that the proposal included providing “consulting services in blockchain and artificial intelligence to facilitate the understanding, analysis, implementation, and impact of innovative technological solutions, contributing to taking advantage of the opportunities offered by the digital economy in Argentina.”
FAQ
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What new tax developments are happening in Brazil regarding cryptocurrency?
The Brazilian government is set to introduce a decree to tax cryptocurrency and stablecoin flows, equating them to foreign currency exchanges. -
How is Venezuela leveraging its gas resources for cryptocurrency?
Venezuela aims to utilize flared gas for bitcoin mining, turning wasted resources into a profitable energy source for mining operations. -
What recent revelations have emerged about President Milei and Libra?
Confidential documents link President Javier Milei to Hayden Davis, revealing plans for Libra, a token intended to support Argentine businesses.
