Some of the top Brazilian-based cryptocurrency exchanges have reportedly received questionnaires from financial authorities in Brazil. This move has been described as an inquiry which aims to know more about their businesses and study their potential use in money laundering and other illegal financial activities.
Based on the report published by a local media platform, Portal do Bitcoin, the government through its Ministry of Finance name has been sending these to virtual currency exchanges a 14-point questionnaire their contact form for the past two weeks.
These set of documents were reportedly signed by prosecutor Ana Paula Bez Batti, and it issued a deadline of five days for crypto exchanges to reply, stating that their response will be part of a private dossier to “protect the interiority of the financial system.”
Though some have inquired as to the information contained in the 14-question questionnaire regarding “wallet’s hash” and for data on the operators, the question as clouded on the phrases; “study to combat corruption and money laundering.” For instance, Question 13 states that;
“Does the crypto-exchange use some type of system to avoid trading in its platform cryptocurrencies with a blockchain history considered to be risky (as risky, consider bitcoins linked to known thefts, illicit markets, and other criminal activities)?”
This decision made by the Ministry of Finance must have been necessitated by the hack of a top Brazilian Virtual currency investment platform, Atlas. Despite the fact that the company stated that the users’ asset is in safe custody, it was also however reported that over 264,000 users, including their email addresses and volume of Bitcoin deposited on the exchange platform, was exposed through the hack.
The Brazilian-based crypto asset firm, Atlas categorically stated that it would let users take advantage of the market in the crypto space with the help of a bot. This will translate to all users making a profit by merely depositing fiat currency of Bitcoin on the exchange for a definite period of time which is similar to that of the BitConnect when it was still in operation.