Brazil and Mexico Tighten Crypto Regulations to Combat Money Laundering
- Under Normative Instruction No. 739, Brazil’s Central Bank now requires virtual asset service providers (VASPs) to present independent audits from entities registered with the Brazilian Securities and Exchange Commission (CVM).
- The audits must assess VASP’s compliance in areas such as institutional policy, organizational structure, and employee training.
- Mexico and the European Union signed a €5 billion trade agreement focusing on global cooperation against crypto money laundering.
- Secretary of State Marco Rubio designated Brazilian gangs Comando Vermelho (CV) and Primeiro Comando da Capital (PCC) as Specially Designated Global Terrorists, with Foreign Terrorist Organization penalties starting June 5.
Brazil’s new audit requirement for VASPs aims to enhance legal compliance and combat money laundering through cryptocurrencies. Meanwhile, Mexico’s partnership with the EU underscores a coordinated effort to address crypto-related illicit activities on a global scale.
These measures reflect increasing international efforts to regulate the use of cryptocurrency in criminal activities, highlighting its role in money laundering by organized crime groups like CV and PCC. (Source)
