Home Coins Bitcoin (BTC) Brazilian Crypto Companies to Self-Regulate: Target a $100 Billion Market by Year-End

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


1596309704 65 Major Chinese Banks Bar Customers From Buying Gold Precious Metals

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.

1595889402 943 Americans to Buy Bitcoin With Their Second Stimulus Checks After1595858606 623 3iq Files IPO for Ether Fund to Trade on Canadian

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 below

Tags in this story
ABCripto, 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 Commons

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.





Source link

- Advertisement -
Mr Bitcointe
Mr Bitcointehttps://www.bitcointe.com/
“Fact You Need To Know About Cryptocurrency - The first Bitcoin purchase was for pizza.” ― Mohsin Jameel
473FansLike
76FollowersFollow
4,567FollowersFollow
5,261FollowersFollow
1,576FollowersFollow
2,230SubscribersSubscribe
USD - United States Dollar
EUR
1.17
GBP
1.29
CHF
1.08
NOK
0.11
JPY
0.01
CAD
0.75
AUD
0.71

Most Popular

Venezuela sees its first Blockstream Bitcoin satellite node

A Bitcoin services startup based in South America has just launched the first Bitcoin node connected to the Blockstream satellite network within Venezuela.According...

YFI founder’s incomplete DeFi protocol Eminence exploited, attacker drained $15M and then returned $8M

Eminence.Finance, the unfinished decentralized finance (DeFi) protocol by Yearn.Finance (YFI) founder Andre Cronje, was exploited Monday night. The attacker drained $15 million from Eminence,...

Blockchain-based fantasy soccer game Sorare signs on Paris Saint-Germain

French soccer club Paris Saint-Germain hasn’t dropped the blockchain baton just yet, with the club now set to issue player collectibles as rare tokens.PSG...

Bitcoin Miner Maker Ebang Narrows First Half Loss To $7 Million, as Covid-19 Hit Demand

Ebang International Holdings Inc., the Chinese maker of bitcoin mining hardware, reported a net loss of $6.96 million during the first six...
bitcoin
Bitcoin (BTC) $ 10,782.64
ethereum
Ethereum (ETH) $ 357.38
ripple
XRP (XRP) $ 0.245394
tether
Tether (USDT) $ 1.00
bitcoin-cash
Bitcoin Cash (BCH) $ 227.61
bitcoin-cash-sv
Bitcoin SV (BSV) $ 169.66
litecoin
Litecoin (LTC) $ 45.64
eos
EOS (EOS) $ 2.58
binancecoin
Binance Coin (BNB) $ 28.56
okb
OKB (OKB) $ 6.15
tezos
Tezos (XTZ) $ 2.27
leo-token
LEO Token (LEO) $ 1.26
cardano
Cardano (ADA) $ 0.102433
monero
Monero (XMR) $ 96.66
stellar
Stellar (XLM) $ 0.074797
chainlink
Chainlink (LINK) $ 10.19
huobi-token
Huobi Token (HT) $ 4.64
tron
TRON (TRX) $ 0.026323
usd-coin
USD Coin (USDC) $ 1.00
dash
Dash (DASH) $ 67.81
neo
NEO (NEO) $ 19.99
iota
IOTA (MIOTA) $ 0.275688
nem
NEM (XEM) $ 0.118453
zcash
Zcash (ZEC) $ 57.12
maker
Maker (MKR) $ 518.70
paxos-standard
Paxos Standard (PAX) $ 1.00
ethereum-classic
Ethereum Classic (ETC) $ 5.44
vechain
VeChain (VET) $ 0.012845
true-usd
TrueUSD (TUSD) $ 1.00
ftx-token
FTX Token (FTT) $ 3.67
kucoin-shares
KuCoin Shares (KCS) $ 0.882494
waves
Waves (WAVES) $ 2.44