Latin America’s crypto scene continues to evolve, with new products and regional expansions highlighting its rapid growth.
This week’s most notable news is that a judge in Cali, Colombia, has issued an arrest warrant for Juan José Benavides Velasco, the alleged mastermind of the Daily Cop operation, and has requested a red alert from Interpol to launch a worldwide manhunt.
On the other hand, Guatemala is moving forward to regulate crypto activities in the country as the sector rapidly expands.
Interpol targets the leader of the crypto scam, Daily Cop
The Colombian court has taken a significant step in the Daily Cop case, involving a corporation that promoted itself as the country’s first cryptocurrency but is now accused of scamming over 150 investors.
According to the Prosecutor’s Office, the company promised 12% monthly returns and operated as a pyramid scam.
A judge in Cali has issued an arrest warrant for Juan José Benavides Velasco, the alleged mastermind of the operation, and has requested a red alert from Interpol to launch a worldwide manhunt.
Benavides escaped Colombia in 2022, and his whereabouts are unknown. He has been accused of conspiracy to commit a crime, unlawful enrichment, and money laundering.
Authorities suspect that he took at least 100 billion Colombian pesos from investors to buy luxury items and homes while also laundering unlawful monies through front companies.
Despite the great claims, investors never received the projected returns, causing outrage and requiring legal action.
The issue grew when reports surfaced linking the scam to illegal payments to Gustavo Petro’s 2022 presidential candidacy.
According to testimony from Spartan Hill CEO Ómar Hernández Doux-Ruisseau, campaign trips may have been paid for with Daily Cop funding and coordinated with former ambassador Armando Benedetti.
As investigations continue, Colombian authorities hope to apprehend all offenders and recover looted assets.
Guatemala moves to regulate crypto for financial inclusion
Shirley Rivera, a Guatemalan congresswoman, has submitted the “Cryptocurrency Law of Guatemala,” which seeks to regulate the usage of crypto assets in the country and legalise them as a form of voluntary payment.
The idea stresses expanding financial inclusivity through technological innovation rather than making cryptocurrencies legal tender.
The measure has 15 article reforms divided into three sections, with a focus on transparency, user protection, and fraud prevention. If enacted, it will become law eight days after final approval.
The Superintendency of Banks and the Public Ministry would undertake regulatory control, assuring compliance and monitoring for fraud.
An important element is the promotion of stablecoins backed by the quetzal or the US dollar, which provide consumers with a more stable alternative to volatile cryptocurrencies such as Bitcoin.
To encourage responsible adoption, educational initiatives and possible tax breaks are recommended.
First Binance Day celebrated in Peru
Binance picked Peru to host its inaugural Binance Day, demonstrating the company’s expanding interest in Latin America.
The event, which took place on May 30 in Lima, intended to link the local crypto community with regional leaders through education, talks, and a showcase of the Web3 ecosystem.
Binance’s Latin America General Manager, Daniel Acosta, stressed the importance of this event, saying it underscores Binance’s belief in Peru’s potential and the region’s burgeoning crypto and blockchain business.
The timing is noteworthy since it coincides with the 15th anniversary of Bitcoin’s initial transaction, which marked the transition of cryptocurrencies into major financial assets.
Binance Day consisted of two main sessions: morning masterclasses on blockchain and Web3 foundations, followed by afternoon panels with industry professionals discussing regulation, security, AI, and Latin America’s specific concerns.
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