News

Brazilian Biggest Brokerage To Launch A Cryptocurrency Exchange

The largest brokerage in the Brazilian private sector, Grupo XP has indicated interest via an announcement that it would be launching a Bitcoin and Ethereum trading platform before this year runs out.

While making the announcement, the chief executive officer of Group XP and XP Investimentos SA, Guilherme Benchimol expressed his view, he revealed that the company would accommodate Bitcoin and Ethereum into the pre-existing platform which will, in turn, open doors to about three million investors into Brazil to invest in the crypto assets.

Brazilian Regulators Decides

Earlier in the month, it was reported that the Brazilian government and its antitrust regulators had instigated an investigation into the activities of banks and major financial institutions in the country due to several complaints received by the authorities stating that crypto exchanges received subpar financial assistance from local banks operating in the country. Officials at the Administrative Council for Economic Defense (CADE) stated that:

“However, it does not seem reasonable for banks to apply such restrictive measures a priority on a straight-line basis to all cryptocurrency companies, without examining the level of compliance and the anti-fraud measures adopted by individual brokerage firms conferring unlawful treatment per se on businesses brokering cryptocurrencies.”

However, Grupo XP CEO Benchimol in an official press statement stated that he is not an enthusiast of the virtual currencies whether as a consensus currency or store of value. He further noted that this move by the company is birthed by the need for the trading platform to advance in the market owing to the fact that it has to meet the demand of its clients as an investment bank, just like banks. Guilherme Benchimol stated that;

“I must confess, this is a theme I’d rather didn’t exist, but it does. We felt obligated to start advancing in this market.”

This Decision Came at the Right Time?

This question of whether or not the decision by Groupo XP came at the right time is seemingly rhetorical as this is simply the best time to make this move towards cryptocurrencies, this is so because the Brazilian government has made an attempt to grant the market some sorry of legitimacy coupled with stable financial services and banking partners.
It would be optimistic to sum up after considering the support of the government, the country’s largest investment platform involving in cryptocurrency and a host of other factors that the cryptocurrency market in Brazil in a few months might experience an emergence of exchanges with the capability to provide services that were unachievable about nine months ago in the country.
Also, there is a strong likelihood that the government’s approval of banks providing financial services to local cryptocurrency exchange will expose the market to pre-existing exchanges that are considering expanding their platform beyond the walls of Brazil, thereby going international.
It is more concrete than probability, and it is now evident as Binance and Upbit which are the two largest exchanges in the crypto market and also OKEx and Huobi have expanded to Singapore in the past week.

The Cryptocurrency Market Structure

The cryptocurrency market structure in Japan, US, and South Korea since Q2 of last year has experienced some stabilization in respective cryptocurrency exchange alongside robust infrastructure, and feasible legal frameworks constituted to protect investors and ensure the growth of crypto-related enterprises.
For several years, South America and Europe have been ‘crawling’ behind Asia and the US owing to the cloud of regulatory uncertainty hovering around their financial systems, but it is commendable that the Brazilian government has exhibited a departure from this regulatory standpoint.
The Brazilian government, being forward-looking, has encouraged the crypto sector and in no time this encouragement might consequently lead to a drastic growth of the virtual currency market of Brazil, Argentina, and Venezuela which could later contribute to the market cap of Bitcoin and other virtual tokens.

Related posts
BitcoinBitcoin NewsbtcusdBTCUSDCBTCUSDTElon MuskNewsteslaxbtusd

Elon Musk Pokes Massive Hole in the Bitcoin Market After Halting Bitcoin Payments at Tesla

Elon Musk left the Bitcoin ecosystem in shambles when he, in his most recent tweet revealed that his electric vehicle company Tesla, would no longer be accepting car purchase payments in Bitcoin. The new development came as a shock to…
BitcoinBitcoin NewsbtcusdBTCUSDCBTCUSDTMoneyGramNewsxbtusd

MoneyGram Debuts Cash-For-Bitcoin Trades At Over 12,000 Locations

Physical cryptocurrency ATMs were one of the first markers of progress for the crypto industry starting from the early to the mid-2010s. Crypto ATMs essentially indicated that there was significant demand for cryptocurrency, specifically bitcoin, and as the markets for…
cryptocurrencyCryptocurrency NewsdogecoinDOGEUSDNewsShiba InuSHIBUSD

Dogecoin Might Need to Watch Out For New Blazing Rival Shiba Inu

The meme coin Dogecoin has been one of the best performing altcoins this year. Although it doesn’t come close to many DeFi coins which are topping the list, DOGE has done significantly well for an asset that was invented as…