Latin America is rapidly becoming one of the leading global centers for cryptocurrencies, where stablecoins have become a key part of the payment infrastructure. According to TRM Labs, the growing popularity of digital assets in the region is accompanied not only by legal operations but also by a significant increase in criminal activities such as money laundering, sanctions evasion, and financing of criminal networks.
This is reported by Business • Media
Stablecoins “now account for nearly 95% of all inflows to sanctioned entities worldwide,” making their monitoring not an option but a fundamental requirement for financial institutions.
Rapid Market Growth and the Impact of Inflation
In 2025, the cryptocurrency sector in Latin America demonstrated explosive growth: Brazil, Venezuela, Argentina, Mexico, and Colombia ranked among the top 25 countries in the world for cryptocurrency adoption. In just one year, the volume of retail crypto transactions in the region increased by more than 125%. Over 30% of the global volume of crypto transactions was provided by stablecoins, with transaction amounts exceeding $4 trillion in seven months.
The main reasons for this development were high inflation, a shortage of dollar liquidity, and the advancement of digital infrastructure. In Venezuela, USDT effectively became the “Binance Dollar,” and prices for goods and services are increasingly being quoted in stablecoins due to hyperinflation.
Increase in Criminal Operations and Regulatory Measures
Alongside market development, the volume of illegal transactions is also rapidly increasing. According to TRM Labs, in 2025, the amount of illegal crypto operations in Latin America reached $158 billion, which is 145% more than the previous year. The main risks are associated with the activities of drug cartels such as Sinaloa and CJNG, which actively use OTC brokers and P2P platforms. Chinese money laundering networks conducted operations exceeding $103 billion in 2025, while flows of sanctioned funds, particularly from Venezuela, were integrated into daily transactions.
The CJNG cartel has long been implementing cryptocurrencies to finance its activities, and some Chinese companies are using digital assets to trade precursors for fentanyl.
In response, countries in the region have intensified control measures. Specifically, Brazil has introduced licensing for cryptocurrency companies, strengthened anti-money laundering and counter-terrorism financing requirements, and is considering the introduction of a tax on international crypto transfers.
In Argentina, the rules for registering virtual asset service providers have been tightened, and a legislative framework for tokenized assets is being created. Mexico has expanded its anti-money laundering obligations in accordance with FATF standards and intensified control over cryptocurrency operations.
TRM Labs emphasizes that “regulatory windows are narrowing simultaneously across all key jurisdictions,” creating additional pressure on crypto exchanges, fintech companies, and banks.
It is worth noting that leading fintech companies, such as Revolut, view Mexico as a future hub for global digital banking.