Latam Insights: Paraguay to Mine Bitcoin With Seized Hardware, Colombia Prepares Crypto Regulation

Welcome to Latam Insights, a compilation of the most relevant crypto news from Latin America over the past week. In this edition, Paraguay seeks to implement seized hardware to mine bitcoin, Colombia prepares to regulate the crypto industry, and Uala raises $195 million to expand throughout Latin America.

Paraguay to Leverage Seized ASICs to Mine Bitcoin

Paraguay is jumping onto the bitcoin bandwagon, joining the ranks of countries like El Salvador and Bhutan.

ANDE, the state-owned power utility company, is partnering with Morphware, an artificial intelligence and cryptocurrency mining company, to establish a bitcoin mining operation using the bitcoin miners seized during illegal energy theft inspections.

Morphware, which already operates in Paraguay, leveraging the hydroelectric energy of the Itaupu dam, stated that the signing of a memorandum of understanding would allow it to “explore the role of bitcoin mining as a national-level opportunity within Paraguay’s broader energy and digital infrastructure landscape.”

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Central Bank of Colombia Finalizes Digital Assets Law Draft

Colombia is taking firm steps to bring clarity to the local virtual assets sector, which now operates in a gray zone.

The Central Bank of Colombia has finalized a draft to regulate the cryptocurrency industry activities, with a focus on recognizing the innovation that digital assets might offer to the wider economy.

Andres Murcia, the bank’s Deputy Manager of Monetary and International Investments, stated that first, the institution took a defensive stance with this draft. Nonetheless, its views evolved, becoming more progressive, acknowledging that digital assets are innovative and can benefit Colombia.

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Argentine Neobank Uala Raises $195 Million to Bankroll Latin American Expansion

Uala, an Argentina-based neobank, has closed a successful funding round, becoming one of the largest fintech companies in Argentina and Latin America.

The company, which serves over 11 million people in Argentina, Colombia, and Mexico, raised $195 million in a funding round led by Allianz X, the investment arm of Allianz Group, with participation of Stone Ridge Holdings Group, Tencent, TABLE Holdings, L.P., Soros Fund Management LLC, and D1 Capital Partners, among others.

After this round, Uala reaches a valuation of $3.2 billion, signaling the growing investor trust in its business model.

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FAQ

• What initiative is Paraguay undertaking regarding bitcoin mining?
  Paraguay plans to use seized ASIC hardware to establish a bitcoin mining operation in partnership with Morphware, leveraging hydroelectric energy.
• What regulatory steps is Colombia taking in the cryptocurrency sector?
  Colombia’s Central Bank has finalized a draft law to regulate the cryptocurrency industry, aiming to clarify its operational framework and embrace innovation.
• How much funding did Argentine neobank Uala recently raise?
  Uala raised $195 million in a funding round, solidifying its position as one of the largest fintech companies in Latin America.