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Cryptocurrency firms in Brazil are upbeat about the crypto industry in the country. In fact, top companies in the market have joined hands by signing a code of self-regulation aimed at boosting crypto assets adoption and driving the market to new heights.
Brazilian firms engaged in cryptocurrency-related services have signed an agreement to self-regulate with the aim of protecting customers and legitimize digital assets, according to Bitcoin.com. Companies such as crypto exchanges, firms offering cryptocurrency custody services, and brokerage services “will now have to incorporate measures to prevent crime and money laundering on their platforms.”
The firms that signed the code are members of Abcripto, the country’s association of cryptocurrency companies. These include the top crypto firms in Brazil such as Bitcoin Market, Foxbit, Novadax, and Ripio.
Abcripto officials say that the agreement is a significant milestone as “these exchange platforms account for up to 80% of the volume of cryptocurrency transactions in Brazil.” The companies also said that they targeting Brazil’s crypto market to grow to $100 billion by the end of 2020.
Indeed, the country’s crypto market has grown fast in recent years. According to Abcripto executive director Safiri Felix, the market has grown by double-digit figures in the last three years.
Felix explained that despite the industry’s rapid growth, “this ecosystem continues to face the regulatory vacuum, as four possible bills for cryptocurrencies are still being discussed in the nation’s congress.” The code signed by the crypto firms is aimed at filling this vacuum.
As explained by Felix, “the main goal of this self-regulation is to protect users ‘without impeding the free initiative’ of companies.” The agreement can also be viewed as the crypto industry’s attempt to align the nation’s market to global standards such as requiring “all platforms to apply the basic requirements of know-your-customer (KYC).”
The code also aims to spur its members to “increase their security parameters, strengthen their legal infrastructure, commit to respect free-market principles, and to respect users’ privacy.” Failure to comply with regulations will result in a penalty for the erring crypto firm.
