Latin America is rapidly establishing itself as one of the main centers of cryptocurrency activity in the world. Stablecoins, particularly USDT, have become especially popular in this market, effectively serving as a key payment infrastructure for both individuals and businesses. However, against the backdrop of significant expansion in the cryptocurrency sector, experts are noting a substantial increase in illegal operations, which creates new challenges for regulatory authorities in the region.
This is reported by Finway
Market Development: High Demand and Widespread Adoption of Stablecoins
According to a report by TRM Labs, the volume of stablecoin usage in Latin America has reached record levels: these digital assets now account for over 30% of the global transaction volume, and in just the first seven months of 2025, the total amount of transactions exceeded $4 trillion. Among the main factors driving this rapid growth, experts cite prolonged high inflation, a dollar shortage, and the development of digital infrastructure.
- Brazil, Venezuela, Argentina, Mexico, and Colombia are among the top 25 countries in the world for cryptocurrency adoption.
- The volume of retail crypto transactions in the region increased by more than 125% in 2025.
- In Venezuela, USDT is already referred to as the “Binance dollar,” and prices are increasingly being set in stablecoins due to hyperinflation.
“Now stablecoins account for nearly 95% of all inflows to sanctioned entities worldwide,” making their monitoring not an option but a basic requirement for financial institutions.
Growth of the Shadow Sector and Regulatory Measures
Amid the market boom, the volume of illegal crypto operations is also rapidly increasing. According to TRM Labs, in 2025, their total volume reached $158 billion, which is 145% higher than the previous year. The biggest risks for the region are associated with the activities of drug cartels (such as Sinaloa and CJNG), which actively use OTC brokers and P2P platforms for money laundering, as well as operations of Chinese laundering networks, which processed over $103 billion in 2025.
- Criminal groups use cryptocurrencies to circumvent international sanctions and finance illegal activities.
- Sanctioned flows, particularly from Venezuela, are increasingly recorded in everyday transactions.
- Chinese companies use digital assets to support the illegal export of fentanyl precursors to Latin America.
In response to these challenges, countries in the region have begun actively tightening cryptocurrency market regulations. In particular, Brazil has introduced mandatory licensing for crypto companies, increased requirements for anti-money laundering and counter-terrorism financing, and is considering taxation of international crypto transfers. Argentina, following the example of other countries, has strengthened registration requirements for virtual asset service providers and is working on creating a regulatory framework for tokenized assets. Mexico, in turn, has expanded AML obligations in accordance with FATF standards.
Experts at TRM Labs emphasize that “regulatory windows are narrowing simultaneously in all key jurisdictions,” which creates additional pressure on crypto exchanges, fintech companies, and banks. In such conditions, companies must quickly adapt to new requirements and enhance their level of transparency.
At the same time, leading financial services worldwide view Latin America as a promising market for the development of digital banking. In particular, Mexico is considered a potential epicenter of the global financial industry of the future.