@misc{38589,
title = {Decrypting Crypto: Supervision, Intelligence, and Recovery in the Virtual Assets Era. A Reference for Latin America and the Caribbean Financial Intelligence Units and Regulators},
author = {Arias Alvarez, Jose Angel and Lagarda, Guillermo and Verastegui Lira, Paulina and Grajales, John and Dassen, Nicolás and Duque, Marcela and Anwar, Kamal and TRM Labs},
year = {2026},
doi = {10.18235/0014600},
abstract = {The rapid expansion of cryptoassets and blockchain technologies is reshaping global financial systems, presenting both opportunities and significant risks for financial integrity. This publication, aimed at Financial Intelligence Units (FIUs) and regulatory authorities in Latin America and the Caribbean (LAC), provides a comprehensive technical, regulatory, and operational reference on virtual assets. It covers foundational blockchain technology, virtual asset categories, regional adoption trends, illicit finance typologies, beneficial ownership challenges, transaction reporting standards, and cryptoasset recovery frameworks. The document addresses the structural gap between fast-evolving technology and slower-adapting regulatory systems, compounded by institutional asymmetries across LAC jurisdictions. Drawing on FATF standards--particularly Immediate Outcomes 6, 7, and 8--and cross-country experiences, it debunks common myths about cryptocurrency anonymity and recovery complexity, while providing actionable guidance for investigations, seizures, and international cooperation. The publication advocates for risk-based, proportionate regulation grounded in technical understanding, public-private partnerships, and regional coordination, offering a roadmap to strengthen AML/CFT/CPF resilience across the region in the virtual assets era.},
url = {https://doi.org/10.18235/0014600}
}