X (Twitter) Banned in Brazil and More

BeInCrypto comprehensive Latam Crypto Roundup brings Latin America’s most important news and trends. With reporters in Brazil, Mexico, Argentina, and more, we cover the latest updates and insights from the region’s crypto scene.

This week’s roundup notes that Brazil’s government has banned X (formerly Twitter) due to its non-compliance with local regulations. Meanwhile, Chile has initiated a legal battle against Worldcoin due to concerns over biometric data, among other updates.

Bitcoin Adoption in El Salvador: Progress or Setback?

El Salvador’s President Nayib Bukele has acknowledged that Bitcoin adoption in his country has not advanced as quickly as expected. This comment is particularly interesting, given that the country declared BTC as legal tender in 2021.

In an interview with TIME Magazine, Bukele described the results as “positive,” although he admitted that the anticipated benefits were not achieved. Although large businesses in El Salvador, such as supermarkets and restaurant chains, accept Bitcoin as a means of payment, mass adoption has not materialized.

Read more: Who Owns the Most Bitcoin in 2024?

To date, Bukele’s government has promoted the use of cryptocurrency in daily transactions and also put forward ambitious proposals such as the creation of Bitcoin City. This initiative intends to build a city powered by geothermal energy from volcanoes that would serve as a global hub for cryptocurrencies. In addition, the president has launched a citizenship program for people who invest at least $1 million in Bitcoin or Tether, with the aim of attracting international investors.

However, despite these efforts, Bukele’s administration remains strongly supportive of Bitcoin. Since the president implemented the Dollar Cost Averaging (DCA) strategy to buy one Bitcoin daily, the country has consistently purchased BTC regardless of market conditions.

At the time of writing, El Salvador’s mempool shows that the government holds 5,859 BTC. With the current market price of Bitcoin, this amount is equivalent to approximately $346.35 million.

Brazil has suspended the social media platform X following its failure to comply with local regulations. Minister Alexandre de Moraes ordered the ban after Elon Musk’s company neglected to appoint a legal representative in the country. The platform is expected to become inaccessible within 24 hours.

In addition to the ban, Brazil has imposed a fine of R$50,000 (approximately $10,000 USD) per day on individuals or companies using VPNs to access the app. Apple and Google have also been given a five-day deadline to remove the app from their stores.

This situation arose after X removed its legal representatives from Brazil in response to what Musk described as “untenable demands” from the Brazilian court, including censorship and privacy concerns.

Considering Brazil’s sixth-place global ranking for the number of X users, a ban could have significant consequences. Furthermore, this decision could impact the country’s crypto community.

X is a crucial platform for real-time market updates and crypto discussions. A potential ban would significantly challenge investors who rely on the platform for information and market insights.

According to a recent survey by CoinGecko, 34.4% of crypto traders and investors rely on X for their information needs. Specifically, 66.7% of the 1,065 survey participants identified X as their primary source of crypto information.

Worldcoin Sued in Chile Over Biometric Data Concerns

Chile’s National Consumer Service (SERNAC) has filed a lawsuit against the Optimistic SpA Group, the company that operates Worldcoin in the country. The lawsuit, submitted to the 2nd Local Police Court of Las Condes, cited irregularities in collecting biometric data from Chilean citizens. 

SERNAC’s investigation uncovered multiple violations of the Consumer Law, particularly concerning the lack of transparency and inadequate protection of personal data.

The Chilean agency seeks to impose substantial fines, potentially reaching $20 million, on Worldcoin for its alleged misconduct. Additionally, it demands the immediate halt of Worldcoin’s operations in the country until the legal issues are resolved.

US Bill Reaffirms Sanctions on Venezuela, Targeting Cryptocurrencies

Amid ongoing political tensions, US Congress members are preparing to introduce a bill that will reinforce sanctions against Venezuela, with a specific focus on cryptocurrencies. The proposed “Law for the Promotion of Freedoms, Opportunities and Rights in Venezuela” (VALOR) seeks to maintain pressure on the Venezuelan government by blocking the assets of key financial institutions, including the Central Bank of Venezuela and the state-owned cryptocurrency, Petro.

This legislation, spearheaded by Congresswoman María Elvira Salazar, aims to tighten existing measures and expand the reach of US sanctions to ensure Venezuela remains under international scrutiny.

“The VALOR Act will do just that by seeking international cooperation for a peaceful transition to democracy in Venezuela and maintaining sanctions until there is substantial and measurable progress,” Salazar said.

In 2018, the Trump administration also implemented measures against Petro, a cryptocurrency the Maduro government launched to sidestep US sanctions. Trump labeled Petro as a corruption tool and a desperate bid to sustain the government.

Stellar Invests in Colombia’s Puntored to Boost Cross-Border Payments

The Stellar Development Foundation (SDF) announced investing $2 million in the Colombian FinTech company Puntored. They facilitated this investment through the Stellar Enterprise Fund as part of an effort to use blockchain technology to enhance remittance services and financial inclusion in Latin America.

Colombia has seen a significant increase in remittance inflow. The country’s Ministry of Finance reported a 17.3% rise between January and July 2024 compared to the previous year.

Read more: How To Accept Crypto Payments: A Brief Guide

Stellar’s collaboration with Puntored currently serves over 18 million users across Colombia, Mexico, and Puerto Rico. Therefore, this partnership is expected to transform the digital payments sector in the region.