Latam Insights: Venezuela Upholds Crypto Mining Ban Amid Power Crisis, Tether Pursues $300 Million Lawsuit in Brazil, Stablecoins Lead Peru’s Crypto Market
By Sergio Goschenko | Published May 11, 2026, 1:05 AM
Welcome to this edition of Latam Insights, your weekly digest of the most impactful cryptocurrency developments throughout Latin America. This week, Venezuela reinforces its ban on crypto mining as the nation confronts a severe energy demand spike, Tether initiates legal action against Titan Holding in Brazil to recover a $300 million loan, and stablecoins have emerged as the dominant force in Peru’s burgeoning $28 billion crypto market.
Venezuela Maintains Crypto Mining Ban Amidst Record Power Demand
Facing an electricity demand surge not seen in nearly a decade, the Venezuelan government has formally reconfirmed its prohibition on cryptocurrency mining activities across its territory. According to a government statement, on May 7, the National Electric System in Venezuela reached a peak consumption of 15,579 megawatts—the highest in nine years. Officials attribute this unprecedented demand to a persistent heat wave combined with continuing economic growth.
In light of the mounting pressure on the country’s power grid, which has forced the implementation of rationing measures affecting ordinary citizens, the statement emphasized the country’s commitment to banning digital mining operations unequivocally. It clearly affirms that:
“The absolute ban on digital mining in the national territory is upheld. Those who illegally use this activity will be sanctioned as the law establishes.”
Authorities have also announced the launch of a regulatory oversight plan to monitor and enforce these measures, signaling upcoming sanctions for any crypto mining operations detected in violation of the ban.
Tether Files $300 Million Lawsuit Against Titan Holding in Brazil
In São Paulo, Tether—the issuer of the widely used USDT stablecoin—has initiated legal proceedings against Titan Holding, a corporation linked to the Master conglomerate controlled by Daniel Vorcaro. The lawsuit seeks to recover $300 million granted as a loan to Titan Holding, which remains unpaid well past its March 28, 2026, due date.
Background to this case reveals that Tether Investments issued the loan approximately one year ago, preceding the public unravelling of the Master conglomerate scandal. In late 2025, Banco Master, Vorcaro’s financial institution, was liquidated by the Central Bank of Brazil after regulators uncovered a $2.2 billion deficit in its reserves—a crisis that impacted over one million customers.
Following Vorcaro’s recent apprehension, Tether’s legal complaint requests the judiciary to freeze all financial assets connected to the defendants, including bank accounts, investments, and other holdings related to Titan Holding, Master Holding, and Master Participações. This move aims to secure repayment and safeguard Tether’s financial interests in Brazil.
Stablecoins Drive 90% of Peru’s Expanding $28 Billion Crypto Market
On the other side of the continent, Peru’s cryptocurrency ecosystem is experiencing robust growth, with stablecoins increasingly taking center stage. Daniel Acosta, General Manager for Binance Latam North, revealed that dollar-pegged stablecoins now underpin approximately 90% of the country’s cryptocurrency transactions, which cumulatively represent an estimated annual volume of $28 billion.
Acosta highlighted that the widespread adoption of stablecoins in Peru is largely due to their effectiveness as a proxy for the US dollar in remittances and cross-border payments. By circumventing traditional intermediaries, these digital assets help reduce transaction costs and enhance payment efficiency for users.
This surge in stablecoin usage positions Peru’s crypto market as one of the most dynamic in Latin America, aligning with regional trends favoring digital assets that offer price stability and facilitate international money transfers.
Additional Latin American Crypto Highlights
- Brazil continues to tighten its regulatory grip on the cryptocurrency sector, including recent measures to ban certain crypto transfers.
- Meta has launched USDC stablecoin payouts catering to Latin American markets, aiming to streamline digital payments.
Stay tuned for more updates as we continue to monitor how Latin America’s cryptocurrency landscape evolves amidst regulatory, technological, and market developments.
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