Caribbean sees crypto revival as adoption grows across Latin America

The Caribbean's cryptocurrency landscape, once shaken by the collapse of FTX (CRYPTO:FTT) and other platforms, is experiencing a resurgence.

According to a recent report by blockchain analysis company Chainalysis, users in the region are increasingly turning to centralized exchanges (CEXs) like Coinbase and Binance.

This revival, which began in late 2023, signals renewed trust and interest in crypto activities throughout the Caribbean.

Based on Chainalysis’ 2024 Geography of Cryptocurrency Report, the Cayman Islands have seen a rise in overseas clients establishing legal entities within the Web3 and blockchain sectors.

David Templeman, Specialist Financial Investigator for the Cayman Islands Bureau of Financial Investigation, noted that the region is focusing on strengthening oversight and improving industry practices following the collapses of FTX, TerraUSD/Luna, Celsius Network, and Three Arrows Capital.

Templeman explained, "There is a strong community of blockchain and Web3 companies within the Islands both physically present and legally domiciled here."

Chainalysis predicts that this renewed activity could position the Caribbean as a key hub for cryptocurrency adoption in the near future.

Latin America as a whole has also seen remarkable growth in cryptocurrency adoption, with a year-over-year increase of 42.5%.

Argentina and Brazil lead the region in terms of cryptocurrency value received, with $91.1 billion and $90.3 billion, respectively.

Argentina dominates the stablecoin market in Latin America, accounting for 61.8% of stablecoin transactions.

Meanwhile, Venezuela has emerged as one of the fastest-growing crypto markets, recording a 110% year-over-year growth.

DeFi is gaining traction in Venezuela, with increased interest observed since late 2023, further fueling the region's cryptocurrency adoption.