TronWeekly

Crypto World News

You are here: Home / Archives for Brazil

Brazil

Binance And Mastercard Join Forces To Launch Crypto Card In Brazil

by

Through its numerous advances and initiatives, the leading cryptocurrency exchange Binance has paved the way for cryptocurrency acceptance. The introduction of the Binance card, which enables users to utilize cryptocurrency for a variety of purchases, is one such initiative.

A law recognizing cryptocurrencies as valid payment options in Brazil was recently enacted. Prepaid cryptocurrency cards were jointly introduced in Brazil by Binance and Mastercard to make the bitcoin game easier for the country’s people.

The global cryptocurrency exchange has announced the arrival of the Binance card in Brazil in collaboration with Mastercard, according to the specifics. The card is now under beta testing as well and will be available to the general public in a few weeks.

The card, which is issued by Dock, enables existing and new exchange customers to utilize bitcoins to pay bills and make purchases at more than 90 million Mastercard outlets worldwide.

During the buying process, users of the exchange will also be able to convert cryptocurrencies to fiat money in real-time. Additionally, users will be able to receive 8% cash back in cryptocurrency. More than 15 cryptocurrencies, including BTC, ETH, BNB, BUSD, SHIB, MATIC, LINK, ADA, and others, are now supported by Binance Card for payments.

Binance Blocks Several Accounts: Bitzlato Case

Due to the Bitzlato probe, Binance, the largest cryptocurrency exchange in the world by market cap, has suspended many accounts. Numerous users, many of whom speak Russian, reported the problem. In a Telegram group conversation, the impacted users complained about the issues and claimed that the accounts had been abruptly terminated. Over 1000 people are now a part of the organization.

The aggrieved users contrast the limits with the punitive action taken by the US Department of Justice against the cryptocurrency firm Bitzlato. Furthermore, a lot of people acknowledge using Bitzlato for both incoming and outgoing transactions between Binance and Bitzlato.

A spokesman for the exchange confirmed to local media that the current account blocking was connected to the Bitzlato case. The cryptocurrency exchange also suggested that users read Binance’s blog post on the various reasons why their account can be deactivated as well as what to do in such a situation.

Bitcoin Now Officially A Mode Of Payment In Brazil

by

Prices for cryptocurrencies like Bitcoin are still far from recovering. At the time of publication, the market’s total value of all cryptocurrencies had changed by just 0.09% over the previous day and was $809.49 billion. Additionally, the value of Bitcoin did not change over the previous day; it was last spotted trading at $16.8k on Thursday. Amidst this downside, Brazil gives hope to crypto enthusiasts.

The official journal of the federal government reports that Brazilian President Jair Bolsonaro enacted a law on Thursday morning. The law establishes a thorough regulatory framework for the use and exchange of cryptocurrencies like Bitcoin (BTC). In addition, the law won’t take effect for 180 days.

The legislation, which had previously been approved by Congress, was passed by President Bolsonaro with no modifications. The new laws state that cryptocurrencies are a digital representation of value. In the South American nation, digital assets are accepted as a means of payment and as a form of investment.

According to the bill, a virtual asset is,

“a digital representation of value that can be negotiated or transferred electronically and used for payments or as an investment.”

No cryptocurrency, including Bitcoin (BTC), is recognised as legal cash by the new law. Which government organisations will be in charge of overseeing market regulation will be decided by the executive branch. When using cryptocurrency as a payment method, it is envisaged that the Central Bank of Brazil (BCB) will be in charge. The securities and exchange commission (CVM) will be in charge of regulating cryptocurrency investments. The BCB, the CVM, and the federal tax authority (RFB) all helped to draught the reform legislation.

More Assets To Join Bitcoin In Brazil?

If the BCB is recognised as the sector’s watchdog, the outlook is not good. The legal definition of a virtual asset cannot be changed by the regulator. There is no reason for the BCB to take extra steps to encourage the adoption of cryptocurrencies, nevertheless. Additionally, Roberto Campos Neto, the organization’s president, has voiced his disinterest in cryptocurrencies as a workable substitute for traditional currency. Volatility is one of the main causes of Neto’s lack of faith, according to him.

Regardless, a legal framework for the cryptocurrency market ought to encourage more open discussion regarding cryptocurrencies.

Cryptocurrency Regulatory Bill Soon To Be Law In Brazil; Chamber Approves

by

A bill governing cryptocurrency transactions was approved by the Brazilian Senate’s full body in April of this year. Senator Flávio Arns’ bill was presented to the Brazilian Chamber of Deputies, which then took a vote on it.

The bill gives cryptocurrency businesses the designation of “virtual service providers,” making them accountable for crimes against the Brazilian financial system in the same ways as traditional financial institutions.

Arns’ bill was accepted by the economic affairs committee of the Brazilian Senate in February, while two other crypto initiatives put up by senators Styvenson Valentim and Soraya Thronicke were shelved.

The bill also establishes a two- to a six-year prison sentence as the maximum punishment for crimes committed using virtual assets. In response to a request from Senate President Rodrigo Pacheco, the sentence that was originally proposed would have ranged between four and eight years.

Cryptocurrency Regulatory Bill Awaits Executive Sanction

On Tuesday, the Chamber of Deputies passed the fundamental language of the Bill, which governs the Brazilian cryptocurrency market. The matter will now be sanctioned by the president.

In accordance with the legislation, businesses have 180 days to adjust to the new regulations before the bill takes effect. The deputies also rejected the focus that demanded segregation of property.

The issue relates to the market authority of regulatory organizations. The project states that the Securities and Exchange Commission will be in charge of overseeing crypto-assets that are classified as securities, while another body that will be chosen by the Executive Branch would be in charge of overseeing assets that do not come under this classification. The selection of the Central Bank is anticipated.

The SEC recently released an opinion to the market with recommendations on how to invest in crypto assets that are regarded as securities in light of the delay by Congress in implementing the PL. The text also outlines the regulator’s scope of authority and suggests methods for standardizing, inspecting, supervising, and disciplining market participants.

The PL that was adopted today had already been authorized by the Senate in April, but it got stuck in the Chamber in June, and even though it repeatedly appeared on the voting agenda, it wasn’t approved again until today, nearly six months later. There was disagreement over some textual issues, particularly those pertaining to patrimonial segregation.

Brazil’s New Proposal Will Make Payments in Crypto Legal

by

A proposed amendment to Brazil’s legislation would allow Brazilians to utilize cryptocurrency as a form of payment while also shielding their private keys from being seized by the courts.

On Friday, Federal Deputy Paulo Martins submitted the idea to the country’s legislature. If passed, the measure would broaden both the legal uses of cryptocurrencies in Brazil as well as the ability of courts to seize them.

While crypto-assets are not a currency in and of themselves, they could be “used as a financial asset, means of exchange or payment, or instrument of access to goods and services or investment,” according to the proposed addition to Article 835 of the Civil Procedure Code.

Brazil’s new proposal will not make crypto a legal tender

It would not make Bitcoin or any other cryptocurrency legal tender in the nation. Instead, it would make cryptocurrency a legally recognized financial instrument that could be used for investments and other purposes.

According to one interpretation of the plan, cryptocurrencies like Bitcoin (BTC) and Ether (ETH) might be used to pay for products and services all around the country. It might also be used to settle outstanding debts “in the case of a crypto asset offering or forced restriction.”

The plan also covers the new rights and restrictions that Brazilian courts will have once a cryptocurrency is recognized as a financial instrument, such as the ability to freeze exchange accounts.

However, the proposal does not grant the court the authority to seize users’ private keys:

“The following regulations shall be followed: The Judiciary will not have access to the users’ private key.”

To ensure the payment’s authenticity, the debtor would have to transmit it to the court’s wallet. The proposal is silent on how the court would get cryptocurrency from self-held wallets.

The court would have the right to order “intermediaries” such as exchanges to freeze the debtor’s crypto assets if they retain their crypto on exchanges.

The proposed amendments are still being debated in the country’s legislative chamber, the Chamber of Deputies. This means the Senate may take several years to pass the amendments and the president to sign them into law. They may have radically changed by then.

Gafisa, Brazil’s Real Estate Giant Embraces Bitcoin

by

Brazil’s real estate stalwart Gafisa has added Bitcoin [BTC] for transactions through a partnership with cryptocurrency gateway provider Foxbit according to a press release. The latest addition is set to cut third-party entities out of the real estate transaction process, thereby reducing costs.

Partner firm Foxbit stated that Bitcoin would reduce the costs of transactions with quick and final settlements while eliminating the risk of fraud and also being a part of the “disruptive technology would open up whole new opportunities for future growth.

As known, Brazil has always been one of the leading countries for the adoption of bitcoin.

In 2022, Chainalysis reported that Brazil was the largest cryptocurrency market in Latin America based on transaction volume, receiving nearly $91 billion worth of cryptocurrencies in the year-long period between July 2020 and June 2021.

Not only does Brazil rank number six in on-chain value transacted in a report by Chainalysis, but Gafisa houses 1 out of every 130 Brazilians, according to its internal data, thus enabling millions of its citizens to have access to the world’s dominant coin.

ronaldo santos Npl87Jk3UO0 unsplash
Gafisa, Brazil's Real Estate Giant Embraces Bitcoin 2

Guilherme Benevides, CEO of Gafisa stated,

“Bitcoin is the largest cryptocurrency in market value and, technologically, the most ballast currency in history. It is a currency that is growing in popularity every day, also expanding the possibilities of its use.”

Gafisa CEO says “Bitcoin follows a path of progression”

Benevides continued to explain that BTC follows a path of progression and with the explosion of the digital revolution globally, Gafisa feels digital payments will continue to garner an increasingly high level of presence in emerging economies.

There is a natural tendency to digitize payments,” Benevides explained. “If we stop to think that the Central Bank will launch the digital real in 2022, we can conclude that, in fact, digital is increasingly present in the world.”

Less than a month ago, the Brazilian Senate plenary approved a bill regulating crypto transactions, and then two weeks later the nation’s only stock exchange, B3, laid out plans to launch Bitcoin futures “in the next three to six months,” Chief Financial Officer André Milanez then said in an interview.

Coinbase’s Big Bet On Latin America’s Largest Crypto Brokerage

by

U.S. cryptocurrency exchange Coinbase Global Inc is inching closer to a major acquisition deal of 2TM, owner of Latin America’s largest crypto brokerage Mercado Bitcoin. As per a report by a local newspaper O Estado de S.Paulo, the agreement would be finalized by the end of April. However, the news outlet did not disclose the source of the information, adding to its mystery.

The report also mentioned that Coinbase was pitching the idea with Mercado Bitcoin beginning in 2021, as part of its larger effort to expand its operations in the increasingly competitive market. As of now, Coinbase and 2TM made no comment on the development.

Last year in July, Mercado Bitcoin, a Latin American digital assets exchange, has raised $200 million in Series B funding from the SoftBank Latin America Fund. The round enhanced its parent firm 2TM Group’s valuation to $2.1 billion, ranking it among the top 10 unicorns in Latin America. 

Processed with VSCO with al5 preset

The report further noted that the Brazilian crypto unicorn would help Coinbase gain the necessary leverage required to secure a market leader position in Latin America. Besides Mercado, Coinbase was also eyeing Mexican crypto exchange Bitso as an acquisition target, but apparently, no deal was reached, the newspaper said.

In November 2020, Coinbase announced the creation of an engineering hub in Brazil and opened different positions to expand its team there. Brazil and the other Latin American nations with their large online population, a growing pool of talented developers, and the desire to improve their situation provide a fertile ground for crypto and web3 to take root.

It is not surprising why many crypto bigwigs are making a beeline in the region. In fact, Coinbase’s major rival Binance is on a hunt for similar acquisitions in Brazil, the newspaper said.

Coinbase’s Competitor Binance too gaining inroads in the Brazilian Landscape

Just a few days ago, Binance CEO, Changpeng Zhao, a.k.a CZ announced that the global crypto exchange will be establishing a base of operations in Brazil’s most populous city, Rio. CZ stated that the move is a direct result of an agreement he reached with the city’s mayor during his visit nine days ago where he was also offered a key to the city.

.

Binance Gains Foothold In Bahrain and Dubai

by

Leading crypto exchange Binance would now be able to offer its service in Bahrain and Dubai. As per sources, the world’s largest digital-asset platform was granted a license from the Central Bank of Bahrain [CBB], to set up shop in the region, increasing its footprint in the Middle East. The news assumes significance as it is Binance’s first such regulatory approval in the Gulf area.

The permit will enable the crypto firm to provide digit-asset trading, custodial services, and portfolio management to customers under the supervision of the Bahrain regulators. As per a Bloomberg report, the cryptocurrency exchange also obtained a license to be the first anchor in Dubai World Trade Centre, an economic free zone. Speaking on the same, CEO Changpeng Zhao a.k.a CZ stated,

“This landmark achievement for Binance represents our first license as a crypto-asset provider in The Cooperation Council for the Arab States of the Gulf [GCC] and demonstrates our commitment to being in regulatory compliance as the first of its group of companies in the region.”

Binance eyeing opportunities in non-crypto industries

In a back-to-back development, the global crypto exchange signed a Memorandum of Understanding [MoU] on 14 March seeking to explore the acquisition of Brazilian securities brokerage Sim;paul Investimentos. According to the company’s website, Sim;paul founded by João Silveira in 2019 is a securities brokerage firm regulated by both the Central Bank of Brazil and the Securities and Exchange Commission [CVM].

As stated in the press release, the move is intended to further develop the cryptocurrency and blockchain ecosystem in Brazil. On establishing the formal agreement, CZ noted,

“In a fast-developing market like Brazil, crypto can transform and facilitate people’s lives and as such, we believe in full collaboration with local authorities that Binance has a lot to contribute in developing the community and ecosystem in Brazil.”

Having said that, completion of the transaction would require a green signal from the administrative authorities, including the Central Bank of Brazil. Previously in August, Binance had to halt trading of crypto derivatives products such as futures contracts on its Brazilian platform to comply with local regulations.

Brazil Inches Closer Towards Regulating Crypto; Committee Approves Bill

by

Brazil’s economic affairs committee on Feb 22 unanimously gave the bill a green signal for regulating digital assets. The recent move if accepted by the full Senate and is signed by its President Jair Bolsonaro would make it the largest Latin American nation to have legalized crypto transactions.

The proposed bill specifies digital assets and categorizes their service providers, thus giving the government power to determine which body will be responsible for regulating business with cryptocurrencies. According to Sen. Iraja Abreu who backed the bill, expects this responsibility will fall on the central bank, which helped construct the legislation.

In addition to that, the bill requires virtual asset service providers to act against money laundering while combating criminal elements, terror financing, and the spread of weapons of mass destruction.

The latest developments come on the same day Russia’s Finance Ministry submitted a draft crypto regulation law that said digital currencies are only available as an investment tool and not as a means of payment.

Having said that Brazil is considered by several global exchanges who see the country’s potential as Latin America’s main market in 2022.

Brazil emerges as the hottest Latin American market for crypto exchanges

The obsession began in 2020 when crypto exchanges began to notice that Brazilian stablecoin traders were quadrupling in number. By 2021, locals traded $11.4 billion in stablecoins, while bitcoin trading reached $10.8 billion over the same period.

Moreover, Brazilians have incentives to buy crypto instead of U.S. dollars to hedge against inflation or devaluation. Despite the country being embroiled with economic imbalances, the region continues to attract major crypto players such as Binance, Coinbase, and Crypto.com.

Not only that, the global payments company Ripple considers Brazil to be the key driver of growth in Latin America. Even regional crypto exchanges already operating in Spanish-speaking markets are also eyeing Brazil.

In the latest development, Brazil-based crypto exchange Foxbit has secured $21 million in a Series A funding round led by OK Group. Founded in 2014 by João Canhada and Luís Augusto Schiavon, the firm at the moment boosts around 950,000 customers, according to its website.

How Brazil’s Bitcoin Pyramid scheme Kingpin made his way to the top

by

Brazil’s Cabo Frio is dubbed as the ‘New Egypt’ for its various Pyramid schemes operating in the town along with its ringleader Glaidson Acácio dos Santos who is referred to as the Bitcoin Pharoah. Dos Santos as per police sources began trading in Bitcoin after leaving his job as a waiter in 2014. A part-time evangelical preacher in training, he recruited clients from Churches earning a referral fee for bringing in fresh recruits.

By 2017, the accused was earning a lot of money which attracted the authorities’ attention. In the same year, his firm which goes by the name of GAS consulting and technology’s total transactions amounted to 10 million reais [$1.8 million], 15 times more than the previous year. The country’s financial intelligence unit also noticed the firm which was registered as a restaurant regularly traded cryptocurrency on online exchange platforms.

Things finally came to an end when in April 2021, Brazil’s federal police caught red-handed two men and a woman loading a chopper with $1.3 million in neatly packed bills. Police sources said that the fraud firm owned by 38-year-old dos Santos had total transactions worth nearly $7 billion from 2015 through mid-2021 as part of a Bitcoin-based Ponzi scheme that promised investors 10% monthly returns.

As for Santos, he is currently lodged in a Rio jail awaiting trial on charges that includes racketeering, financial crimes, and ordering the killings and attempted murder of two business competitors.

Brazil’s crypto obsession turned fatal

The case reflects the growing appetite for cryptocurrencies in Brazil, where years of economic and political upheaval have made digital currencies an attractive cover against the depreciation of the Brazilian Real and double-digit inflation.

The craze for digital assets especially peaked in Cabo Frio, the seaside town of 230,000 where the office of the kingpin was located. As G.A.S. revenues surged, many copycat firms sprang up, hoping to reap the benefits. Soon a wave of cryptocurrency-related violence followed leading to several murders.

Experts feel that Brazil’s lenient laws regulating cryptocurrency helped fuel the rise of dos Santos. Additionally, Brazil’s securities regulator was making digital currencies more attractive. In fact, in 2018 it authorized the country’s investment funds to invest in cryptocurrencies, giving further credibility.

Brazil’s Rio de Janeiro aims to invest 1% in cryptocurrency; soon to launch Crypto Rio

by

Brazil’s Rio de Janeiro is increasing its efforts to facilitate bitcoin adoption. Recently Rio mayor Eduardo Paes expressed his intention to create Crypto Rio and transform the city into a tech hub as well as allot 1% of its reserves in the digital asset industry. Paes in a decree published on 14th January 2022 announced the creation of a working group to explore opportunities in incentivizing the use of crypto and boost the city economy, such as offering discounts when paying taxes with Bitcoin. 

According to the decree, digital asset might also used to fund city projects. The working group is set to publish the results of its study in 90 days. Pedro Paulo, secretary of finance and planning of the city, at the event on Thursday said:

We are going to launch Crypto Rio and invest 1% of our public funds in cryptocurrency, We are studying the possibility of paying taxes with an additional discount if you pay with bitcoins. You take the discount off the single quota of 7% (of the IPTU), it becomes 10% if you pay in bitcoin. Let’s study the legal framework to do this.

If succeeded, Rio will become the first Brazilian city to hold bitcoin on its balance sheet. Last year, El Salvador became the first nation to buy bitcoin on its balance sheet. The central American country presently holds nearly 1,390 bitcoins, worth more than $58 million at current prices.

The recent developments reflects a positive stance of the brazilian administration towards the digital asset industry.

Brazil advancing towards legalizing Bitcoin

Previously a crypto bill that that allowed workers to accept Bitcoin as their salary was approved by the Chamber of Deputies of the Brazilian Congress in the early days of December 2021and is currently awaiting review by the Senate. Federal Deputy Luizão Goulart, a congressman, went on to propose a bill to legalise crypto payments as a mode of payment for public and private sector workers.

The project, known as Bill 2303/15 and proposed by Deputy Aureo Ribeiro, establishes definitions for exchanges and virtual currencies. It also requires a central body to monitor all cryptocurrency-based operations, which will be appointed by the executive branch of the government.