Fun

Brazilian Crypto Companies to Self-Regulate: Target a $100 Billion Market by Year-End

News Feed - 2020-08-24 04:08:08

Brazilian Crypto Companies to Self-Regulate: Target a $100 Billion Market by Year-End


Brazilian crypto companies have signed a code of self-regulation that aims to legitimize and to boost adoption of crypto assets in the country. The document was signed under the auspices of Abcripto, the country’s association of cryptocurrency companies.


According to regional media reports, Brazilian firms that specialize in cryptocurrency custody services, brokerage services, and exchanges “will now have to incorporate measures to prevent crime and money laundering on their platforms.”


The country’s prominent cryptocurrency firms that signed the code include Foxbit, Ripio, Bitcoin Market, and Novadax. The association members say they are targetting a $100 billion cryptocurrency market by end of 2020.


According to Abcripto officials, who see the agreement as a significant milestone, “these exchange platforms account for up to 80% of the volume of cryptocurrency transactions in Brazil.”


The signing ceremony was broadcast live and the code will be “registered on a private platform based on blockchain created by Growthtech.” Growth Tech develops distributed ledger solutions for the notarial and real estate market and is backed by IBM cloud services.


The objective of the agreement is to establish operational practices and compliance standards that all members must adhere to.


Speaking after the signing, the executive director of Abcripto, Safiri Felix, says this is an important step for the fast-growing market. According to Felix, Brazil’s cryptocurrency market has grown by double-digit figures in each of the last three years.


Despite the phenomenal growth, “this ecosystem continues to face the regulatory vacuum, as four possible bills for cryptocurrencies are still being discussed in the nation’s congress.”


Explaining the objectives of the code, Felix says the “main goal of this self-regulation is to protect users ‘without impeding the free initiative’ of companies.” Abcripto members also committing to fight the negative perception cryptocurrencies in the country.


The code also attempts to align the Brazilian crypto market with global standards as it requires “all platforms to apply the basic requirements of know-your-customer (KYC).”


Furthermore, “members must increase their security parameters, strengthen their legal infrastructure, commit to respect free-market principles, and to respect users’ privacy.” The code also seeks to penalize members that fail to comply with these regulations.




For more than a year, representatives from the crypto market say “they have been investigating cases of self-regulation at the international level in order to adapt it to the Brazilian ecosystem.”


Still, Felix believes that “at some point, the Brazilian government will issue a regulatory framework for cryptocurrency companies.”


Shortly after the self-regulation code was signed, media reports surfaced suggesting that the Brazilian legislature is proposing another law that seeks to regulate bitcoin and cryptocurrencies in that country.


The reports say under the law proposed by Brazilian Senator Soraya Thronicke, Brazil wants the central bank and the Brazilian Securities and Exchange Commission to regulate cryptocurrencies.


Meanwhile, Felix reveals that the global pandemic, Covid-19 might have played a part in forcing Abcripto to hasten the move to self regulate.


“This health phenomenon has triggered the use of financial technologies worldwide including transactions based on bitcoin,” Felix explains.


The executive director adds that “this could be the opportune moment for the more than 30 Brazilian crypto exchanges to adopt protection measures for their users.”


What do you think of the self-regulation move by Brazilian crypto players? Share your thoughts in the comments section belowInter-Blockchain Liquidity: Minting Synthetic Bitcoin Cash With the Ren ProtocolNEWS | 8 hours agoDarknet Giant Empire Market Offline for 36 Hours, Blame Cast at Massive DDoS AttackNEWS | 12 hours agoTags in this storyABCripto, Brazil cryptocurrency, Brazilian Securities and Exchange Commission, COVID-19, cryptocurrency market, Foxbit, KYC, KYC Compliance, NovaDAX, ripio, Safiri Felix, self regulation


Image Credits: Shutterstock, Pixabay, Wiki CommonsUse Bitcoin and Bitcoin Cash to play online casino games here.Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.Read disclaimerShow comments

News Feed

Bitcoin Difficulty Increases 6% — It’s Still 48% Easier to Find BTC Blocks Than It Was 30 Days Ago
Bitcoin Difficulty Increases 6% — It"s Still 48% Easier to Find BTC Blocks Than It Was 30 Days Ago As expected, Bitcoin’s mining difficulty increased thi
Web3 Privacy Layer Aztec Raises $100 Million in Series B Funding Round to Produce an Encrypted Version of Ethereum
Web3 Privacy Layer Aztec Raises $100 Million in Series B Funding Round to Produce an Encrypted Version of Ethereum Aztec, a Web3 privacy layer, has raised $100 million in a Series
Vikram Raj Singh11 hours agoImplementing tokenized securities for regulatory complianceSince they are programmable, tokenized securities enable the implementation of automated compliance rules and the execution of comple
India, UAE Collaborate to Boost Cross-Border Central Bank Digital Currency Transactions
India, UAE Collaborate to Boost Cross-Border Central Bank Digital Currency Transactions India’s central bank, the Reserve Bank of India (RBI), and the Central Bank of the United
Gibraltar Stock Exchange Receives Purchase Proposal by Blockchain Firm
Gibraltar Stock Exchange Receives Purchase Proposal by Blockchain Firm The stock exchange of Gibraltar, a British territory, has received a purchase offer by a blockchain firm call
Bitcoin price drop below traders’ cost basis warns of deeper sell-off
Nancy Lubale7 hours agoBitcoin price drop below traders’ cost basis warns of deeper sell-offBitcoin’s price fell below traders’ average entry point, leading analysts to caution that the current sell-off could conti
Biggest Movers: Meme Coins Move Lower, With SHIB Declining by 10%
Biggest Movers: Meme Coins Move Lower, With SHIB Declining by 10% Meme coins moved lower on Jan. 19, as cryptocurrency markets plunged following recent highs. Shiba inu, which rose
Survey: More Than 70% of Salvadorans Believe the Bitcoin Law Has Not Improved Their Personal Finances
Survey: More Than 70% of Salvadorans Believe the Bitcoin Law Has Not Improved Their Personal Finances A recent survey has offered some insight into the real opinions Salvadorans ha
Blockchain game Shrapnel to permaban users found playing the system
Arijit Sarkar1 hour agoBlockchain game Shrapnel to permaban users found playing the systemShrapnel warned users against using “teaming” and “account sharing” strategies to rank higher on the Shrapnel STX leaderbo
PAXG hit new high amid Middle East tensions, raising questions about Bitcoin
Martin Young3 hours agoPAXG hit new high amid Middle East tensions, raising questions about BitcoinTensions in the Middle East ramped up over the weekend following an Iranian drone and missile attack, with the price of P
Assetera launches secondary tokenized RWA market on Polygon
Derek Andersen11 hours agoAssetera launches secondary tokenized RWA market on PolygonAssetera will provide Europe"s first regulated secondary tokenized real-world asset marketplace.1262 Total views1 Total sharesListen to
3air Leverages Blockchain Technology to Deliver Extensive Broadband Connectivity in Africa
3air Leverages Blockchain Technology to Deliver Extensive Broadband Connectivity in Africa sponsored The broadband internet connectivity platform, 3air, aims to bring seamless broad