News
Bitcoin Pharaoh Remains in Prison and More
BeInCrypto Complete Latam Crypto Roundup brings the most important news and trends from Latin America. With journalists in Brazil, Mexico, Argentina and other countries, we cover the latest updates and insights from the region’s crypto scene.
This week’s roundup includes stories about Brazil’s Bitcoin Pharaoh, Botev Plovdiv FC’s move to El Salvador to issue tokenized shares, and more.
El Salvador and Russia strengthen economic cooperation: Bitcoin could be on the agenda
El Salvador and Russia presented plans for closer economic cooperation at the St. Petersburg International Economic Forum. Salvadoran Vice President Felix Ulloa has proposed strengthening trade relations and establishing mutual embassies, potentially reshaping the economies of both nations.
Russia, in front sanctions from the US and the EU after the invasion of Ukraine in 2022, seeks new trading allies. Under President Nayib BukeleEl Salvador has cooled relations with the United States while strengthening ties with China.
From a geopolitical perspective, an alliance with Russia could strengthen El Salvador’s global position, reducing its dependence on the United States and strengthening relations with emerging powers such as China and Russia. Economically, El Salvador aims to balance its trade deficit with Russia, highlighted by Ulloa’s mention of a $16 million import from Russia in 2021 with no corresponding exports.
To know more: Top 3 Methods to Transfer Money Cross-Border Using Cryptocurrencies
Trade scenario between El Salvador and Russia, according to the latest available data. Source: OECD
Technologically, El Salvador aspires to become a center of innovation. Collaborations with Russian technology companies could support this ambition. In particular, the role of Bitcoin is crucial in this potential partnership. As the first country to adopt Bitcoin as legal tender, El Salvador’s digital asset laws and possible creation of a Bitcoin bank could facilitate trade with Russia, bypassing traditional fiat currencies controlled by central banks.
This economic cooperation could redefine El Salvador’s position on the global stage, offering new opportunities in trade, technology and digital finance.
Brazil’s “Bitcoin Pharaoh” will remain in prison after Supreme Court ruling
The Federal Court (STF) supported the incarceration of Glaidson Acácio dos Santos, known as the “Pharaoh of Bitcoin,” on June 11. Santos, accused of running a cryptocurrency scam through Gas Consultoria, was arrested in 2021 during the federal police’s Operation Kryptos.
Santos’ defense requested habeas corpus, seeking to convert his detention to house arrest due to alleged psychiatric problems and questioning the jurisdiction of the Federal Court. However, Judge Gilmar Mendes rejected the request. He acknowledged that pyramid schemes typically fall under state jurisdiction, but noted that federal courts can intervene when the cases involve crimes related to the nation’s financial system.
Santos faces multiple charges, including financial pyramiding, fraudulent management, irregular issuance of securities, unauthorized operations and criminal organization. His scheme promised victims 10% monthly returns on investments in crypto-assets.
This decision follows the recent arrest of Cláudio Barbosa, another “Bitcoin Pharaoh,” for running a pyramid scheme through Trust Investing. Running away from 2022, Barbosa is said to have caused a loss of R$4.1 billion to investors in more than 80 countries.
To know more: The 15 most common crypto scams to watch out for
Bulgarian football club Botev Plovdiv will issue tokenized shares in El Salvador
Bulgarian football club Botev Plovdiv FC has announced plans to move its cryptocurrency operations to El Salvador through Bitfinex Securities. The club adopted Bitcoin as a payment method in October 2023. It shifted its operations to benefit from tax incentives and El Salvador’s favorable economic environment, with the aim of accessing new capital markets.
George Manolov, leader of the club’s Bitcoin strategy, revealed that Botev Plovdiv created a financial entity in El Salvador to issue tokenized shares. This initiative allows investors to become co-owners of the club.
To know more: What is Tokenization on Blockchain?
“We want Bitcoin to become the primary long-term financial strategy for our business. I am here because we want to issue tokens from El Salvador to accumulate BTC, but also to allow our fans to take part in the process of becoming a recognized European club. We are working with Bitfinex Securities to democratize stocks and the investment ticket will be very low. Anyone can become a co-owner,” Manolov explained.
Manolov discussed this new business model during a Bulgarian presentation and will share it at the BTC forum in Prague. He explained it tokenization would enable efficient storage, transfer, and management of assets on Bitfinex Securities via Liquid Network, a Bitcoin sidechain.
Brazil’s Largest Private Bank Expands Access to Bitcoin and Ethereum
Itaú Unibanco, Brazil’s largest private bank, has expanded its cryptocurrency offering, allowing customers to trade Bitcoin and Ethereum through its digital platform, Íon. With assets exceeding R$2.7 trillion, the bank aims to make access to these major cryptocurrencies easier and safer.
The initiative began gradually at the end of 2023, receiving positive feedback from customers. In internal surveys, more than 90% of users rated their experience as good or exceptional. With a minimum contribution of R$10, all active users on the Íon platform can now trade cryptocurrencies.
“We are very pleased with the cryptoasset journey we are building with our clients. The opening of trading to all Íon users reflects not only the evolution of our product but also of the entire market,” said Guto Antunes, head of Itaú Digital Assets. He highlighted Itaú’s commitment to offering intuitive and secure cryptocurrency trading.
Itaú also aims to educate customers about the cryptocurrency market, ensuring they make informed investment decisions. This move aligns Itaú with the others Brazilian institutions such as BTG Pactual and Nubank, which already offer cryptocurrency exposure to their clients.
To know more: Cryptocurrencies and banking: what is the smartest choice?
El Salvador Surpasses IMF Remarks and Reaffirms Bitcoin Agenda
El Salvador’s vice president Félix Ullóa did so reaffirmed the country’s commitment to Bitcoin, aiming for economic liberation from central banks. Since the Digital Assets Law was enacted last year, the nation has embraced various tokens and cryptocurrencies.
Ullóa highlighted El Salvador’s pioneering role in admitting Bitcoin into exchange-traded funds (ETFs) ahead of the US He expressed confidence that Bitcoin could reach $100,000 by the end of 2024.
Despite initial criticism from the International Monetary Fund (IMF) and rating agencies, El Salvador has diversified its financing sources beyond traditional multilateral organizations. This strategy has strengthened the country’s credibility and attracted digital economy companies through a supportive regulatory framework.
To know more: Who owns the most Bitcoin in 2024?
El Salvador recently marked three years since the adoption of Bitcoin as legal tender. The country purchases one Bitcoin per day, accumulating up to 30 BTC per month. These investments have borne fruit over 67 million dollars in unrealized profits.
Prominent investors like Cathie Wood, CEO of ARK Invest, believe in President Bukele’s Bitcoin strategy could increase significantly National GDP over the next five years. Ullóa acknowledged that the IMF continues to monitor the Bitcoin Law, highlighting ongoing discussions about the associated risks and benefits.
As Latin America’s crypto scene grows, these stories highlight the region’s growing influence in the global market. From El Salvador’s Bitcoin plans to Brazilian banks’ cryptocurrency trading launch, LATAM is positioning itself as a key player in the world of technology. Stay tuned for more updates and insights in next week’s recap.
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