Breaking away: Grupo XP, Brazil’s largest independent brokerage, announced that it will launch the Bitcoin trading and ETH trading platform by the end of 2018. At the same time, the Brazilian government has taken the first step towards legalizing the cryptocurrency market. The author believes that with the support of the government and the largest local brokerage company, there will be more local cryptocurrency exchanges in Brazil in the future, while attracting existing exchanges dedicated to international market expansion, and eventually bringing an index to the local cryptocurrency market. Growth.
Grupo XP, Brazil’s largest independent brokerage, has publicly announced plans to launch Bitcoin and the Ethereum trading platform by the end of 2018.
GuilhermeBenchimol, CEO of Grupo XP and XP Investment, said the business would integrate BTC and ETH coin into the company’s existing infrastructure, enabling more than 3 million investors in the country to invest in encrypted assets.
Major decision
As stated in the CCN’s previous report, on September 20th, the Brazilian government and its anti-monopoly regulators received complaints from the local banks that the cryptocurrency exchanges received lower than standard financial services, and the country’s banks and major financial institutions A formal investigation was launched.
Officials of the Brazilian Economic Defense Administrative Committee (CADE) stated:
“However, the bank has applied this restrictive measure directly to all cryptocurrencies directly, without checking whether the compliance level of each broker and the anti-fraud measures it takes are illegal operations, which does not seem to be reasonable.”
In an official statement, Grupo XP CEO Benchimol stressed that he personally is not optimistic about cryptocurrency as a means of value storage and consensus currency. However, he said that the company believes it has an obligation to start promoting cryptocurrency transactions in the market, because ultimately, like banks, investment companies must meet customer needs.
“I have to admit, I would rather have this topic never existed, but it already exists. And we have to start to lay out in this market,” Benchimol said.
The surprising decision of Grupo XP is particularly important for the South American cryptocurrency market, as it is at this time that the Brazilian government is also taking the first step towards legalizing the market through stable financial services and banking cooperation.
With the support of the government and the country’s largest investment company, there may be more exchanges in the cryptocurrency market in Brazil in the coming months, providing investors in the country with services that were not available in the past nine months.
The government’s incentives for banks to provide financial services to local cryptocurrency exchanges are entirely likely to drive the market open to existing exchanges that focus on international market expansion.
In the past week, the two largest exchanges in the cryptocurrency market, Binance Exchange and Upbit, and OKEx and Huobi, have expanded their operations to Singapore.
market structure
Since mid-2017, the United States, Japan, and South Korea have achieved stability in their respective cryptocurrency exchange markets. On the one hand, these countries provide a stable and robust infrastructure for the market, and on the other hand, they have established a practical regulatory framework for protecting investors and promoting the growth of cryptocurrency-related businesses.
Over the years, South America and Europe have lagged behind Asia and the United States due to regulatory uncertainty. However, the forward-looking attitude of the Brazilian government and the positive trend of major financial institutions entering the market may lead to an exponential growth in the cryptocurrency markets of Brazil, Argentina and Venezuela.