24 Aug 2020 Simon Briggs
Brazilian Crypto Startups Signed A Self-Regulatory Agreement
Crypto companies in Brazil seem to have been working side-by-side to boost the adoption of crypto assets. The new self-regulatory code seeks to legitimize the use of cryptocurrencies in Brazil, as the members of the Brazilian crypto-economy association, ABCripto, recently signed a code for self-regulation of the cryptocurrency market.
The agreement was signed last week during a live broadcast, registered on a private blockchain-based platform, created by GrowthTech. The company develops accounting solutions distributed to the notary and real estate market, supported by IBM's cloud services.
The main idea behind the code signing is accepting and following a series of operational practices and standards among the members of Brazil’s market.
The executive director of ABCripto, Safiri Felix, pointed out that in the last three years the market for cryptocurrencies in Brazil has experienced a double-digit increase per year. Nevertheless, the crypto sector in Brazil continues to face regulatory vacuum, despite the possible approval of four cryptocurrency-related regulations.
Felix also noted that the main purpose of this self-regulation is to protect consumers without hindering companies' activities. Тhe document seeks to incorporate practices that legitimize and encourage the negotiation of crypto assets but demystify the use of these currencies for illicit activities.
ABCripto members would have to include basic Know-Your-Customer mechanisms in order to comply with the Brazilian crypto sector, and with the global regulatory standards. Also, crypto companies “must increase their security parameters, strengthen their legal infrastructure, and commit themselves to respect their free competence and always respecting the privacy of their users' information.” Safiri Felix added.
Felix also stated that, even though he considers that the Brazilian government will issue a regulatory framework for cryptocurrency companies, this could take a long time. ABCripto’s executive director added that he has been investigating cases of self-regulation at the international level with the purpose of adjusting them to the Brazilian crypto ecosystem.
The recent COVID-19 outbreak with Brazil among the top-infected countries may have been a catalyst for such self-regulatory actions.
“This health phenomenon has triggered the use of financial technologies worldwide, highlighting among them those based on Bitcoin,” Felix concluded.
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