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From attracting major investments to framing regulatory frameworks to fostering innovation, Brazil has grown up to be one of the most vital parts of the global cryptocurrency market. This overview brings out a clear insight into the present state of the cryptocurrency market in Brazil with regard to government initiatives, regulatory bodies, major investments, and key players.
February 2024: A crypto payments company smoothened KYC procedures for users on all major platforms like MetaMask, TrustWallet, and BitPay.
An amount of BRL 28 billion is established by the Government of Brazil under a Growth Acceleration Program, PAC, for the development of digital inclusion and connectivity. This will attract private investments and increase growth.
Cryptocurrency is legalized by the Chamber of Deputies as a method of payment across Brazil by legislating it in the December of 2022.
A bill on regulating Bitcoin as a payment method is successfully passed by Brazil in November 2022, hence, putting in place a wide-scale regulatory framework.
These initiatives have therefore been highly visible, proving a commitment by the Brazilian government to promote the growth of cryptocurrency ecosystems while remaining very protective of users and thus fostering financial inclusions.
Until 2023, Brazil had no standalone regulation for cryptocurrencies. However, the new and landmark Brazilian Virtual Assets Law (Law No. 14,478/22), which was enacted in December 2022, did create a legal base for transactions with virtual assets. This legislation is still relatively in its infancy, although ancillary regulations from BCB are expected to follow soon, laying more detailed requirements on businesses in the area of compliance in the near future.
1. Central Bank of Brazil
2. Brazilian Securities and Exchange Commission
3. National Tax Revenue Service (RFB)
4. Council for Control of Financial Activities (COAF)
1. Brazilian Blockchain and Cryptocurrency Association (ABCB)
2. Brazilian Association of Cryptoeconomy (ABCripto)
These institutions play a huge role in shaping the regulatory landscape and making sure the markets are compliant.
June 2023: Accenture makes an investment in Parfin, a top Latin American Web3 infrastructure provider for financial institutions.
November 2023: OKX, a crypto exchange and Web3 wallet platform, launches into Brazil with DeFi access and fiat-on-ramp capabilities.
April 2023: BTG Pactual, a major financial institution, unleashes its own dollar-backed stablecoin.
2021: 2TM, a SoftBank-backed Brazilian firm and the owner of Mercado Bitcoin, the largest Latin American crypto exchange, takes the majority stake in Lisbon-based cryptocurrency exchange CriptoLoja.
These investments represent the growing confidence of foreign companies and national players in the potential of the Brazilian cryptocurrency market.
Biscoint
FoxBit
CDA Oasis Global Trading
Redecoder Gateway
Mercado Bitcoin
Bitfy
Bizanc N3 Research
LoopiPay
Emigro
nftfy
Interchains
Investy Club
Hashdex
The above companies are contributing to innovation, leading the Brazilian cryptocurrency landscape, among many services issued on trading platforms, digital asset custody, and DeFi solutions.
The cryptocurrency market in Brazil is projected to be US$117 million in 2028 from US$73 million in 2023, growing at 12.65% CAGR. By being proactive towards regulating cryptocurrencies and also investing heavily within the vertical, it has created a local ecosystem of vibrant players; thus, it is rightly situated to lead in the Latin American crypto market. As regulations and the market mature, Brazil can become a global hub for innovation and responsible cryptocurrency adoption.
