The crypto landscape in Brazil

New investment and payment players are emerging while some await government regulatory approval to gain clarity. Vinicius Vieira of Bex pays details this change in dynamics.

Brazil is currently one of the top five countries with the most crypto investors; it has more than 10 million users, or about 5% of the population, behind only India, the United States, Russia and Nigeria.

Despite big losses around the world, investments or payments using cryptocurrencies continue to dominate the media, as many people still wonder about the risks and benefits of crypto. Safety is always at the forefront of every discussion. Many experts are concerned about the risks posed by crypto payments and their increasing use in fraud schemes and other crimes.

Crypto regulation and partnerships with Open Finance, Pix and CBDC

Crypto assets are not yet regulated in Brazil, but soon will be. The proposed bill, currently being debated in the House of Commons, will create a set of rules to provide additional security for investors and improve the growing oversight of crypto-related businesses. Most stock exchanges reacted positively to news from the Brazilian Securities and Exchange Commission (CVM), which said the guidelines were not intended to interfere in the industry – particularly to avoid affecting trading processes. innovation. Exchanges have noted that the market will benefit from increased security and reliability. Many international companies are waiting for the release of the regulations, studying alternatives and preparing the user experience to enter the Brazilian market, as they expect to see significant demand once the regulations are in place. Among other measures, the proposed bill stipulates that domestic and international companies are required to obtain licenses from the regulator.

The Central Bank of Brazil (BCB) is optimistic about the country’s crypto regulation and has proposed interconnection with a CBDC (Digital Real), Pix and Open Finance, as well as potential opportunities to transform the financial services market and connect to the metaverse. BCB Chairman Roberto Campos Neto says digital assets will lead to a future “tokenized” economy.

Partnerships and engagement between regulators and companies

The market is currently operating in an area with many unanswered questions, but experts have noted that regulators, innovators, and private market players need to cooperate with each other to create a safe and secure crypto environment.

Giant cryptocurrency exchange Binance is actively studying Brazil to better understand the local market and improve its approach to preventing, investigating and combating financial crimes. Additionally, Binance hosts several themed workshops with a range of government agencies to address the concepts behind blockchain and crypto assets, as well as other issues. The goal is also to increase awareness of Binance’s anti-money laundering (AML) policies. Attendees will learn about the company’s tools and processes to help authorities combat cyber and financial crimes involving digital assets. Media recently reported that Binance has terminated its partnership with Brazilian payment provider Capitual, and litigation is currently underway to resolve the matter. This situation reflects the complexity of the current regulatory framework and the vulnerability of certain industry models and flows.

Digital giants enter the market

A new Brazilian player recently entered the market and made a significant impact. Just three weeks after Nu Cripto was established, Nubank announced that one million individual customers had used the bank’s app to purchase cryptocurrency. With over 50 million users in Brazil, the company aims to democratize crypto and provide its customers with new financial opportunities. The Brazilian unicorn is also leveraging its brand trust and modern user experience to streamline access while increasing security for those investing in crypto, which has caught the world’s attention. Bexs is also part of the Nu Cripto solution offering an FX-as-a-Service platform integrated into Nubank’s app, allowing Brazilian investors to access crypto wallets.

Other major players are looking to the Brazilian market not just for investments, but also for payments. Argentina’s Mercado Libre, one of the largest e-commerce companies in Latin America, has launched its own cryptocurrency, called Mercado Coin, on its platform. Mercado Coin is used to make purchases on Mercado Libre and receive rewards (cashback). The company believes that blockchain technology has significant potential to provide more secure transactions. The new crypto option is available to its 80 million Brazilian users, and the company plans to start using Mercado Coin in other Latin American markets as well.

The future of crypto in Brazil

The future will depend on how regulations are framed here and in other countries – and how much of the crypto price can recover. Nevertheless, there seems to be no turning back now. Traditional banks are following this market closely and paying particular attention to Gen Z consumers, who are most likely to be attracted to crypto. Additionally, an increasing number of stores are accepting cryptocurrency payments. According to CoinMap, more than 900 Brazilian companies currently accept crypto payments. They were disruptive and their future has been somewhat uncertain over the past decade, but corporate and government interest leads us to believe that crypto adoption is on the right track to make cryptocurrencies a Efficient and robust investment and payment option in Brazil and worldwide.

About Vinicius Vieira

With over 10 years of experience in global payment processing, Vinícius areas of expertise include digital payments and fintech innovation, global acquiring, multi-currency payment processing, cross-border payments in Brazil and in Latin America, product and business development. At Bexs Pay, his main challenge is to lead business growth while bringing innovation and technology – which, through payment transactions, facilitate access to global goods and services for Brazilians and the best of goods and services. Brazilians for the world.

About Bexs

Bexs connects Brazil to the world with the best team and innovative foreign exchange and payment technologies to bridge the gap between businesses and customers on all continents. The group unifies solutions developed by Bexs Bank, which has been providing bespoke transactions and API functionality to the foreign exchange market for over 30 years, and Bexs Pay, a pioneering digital payment provider for cross-border markets. This guarantees Brazilian customers access to the best the world has to offer and gives Brazilian products and services cross-border reach. Bexs has already processed millions of payments and FX transactions for global companies such as TikTok, Worldline, Kwai, Thunes, Nubank, among others.

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