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Brazil, crypto exchanges struggling
Brazil, crypto exchanges struggling
Crypto

Brazil, crypto exchanges struggling

By Eleonora Spagnolo - 17 Feb 2020

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Regulations change in Brazil and two crypto exchanges shut down. This is happening to Acesso Bitcoin and Latoex. The news has been spread by the Bitcoin.com website which in turn references the local newspaper Portal do Bitcoin

Reportedly, after the introduction of new regulation, exchanges complained about collapsing volumes.  

Pedro Nunes, CPO of Acesso Bitcoin, told the Brazilian newspaper: 

“After the Federal Revenue regulations, we have noticed a significant reduction in the volume traded within our market. We also believe that the market has cooled for smaller exchanges”.

Indeed, the website is now unreachable. A few days before it went offline, clients were recommended to transfer their deposited funds to another place on the exchange.

Even Latoex, based in Sao Paulo, is about to close down. This was announced by Latoex Capital CEO Diego Velasques. In this case, however, the site is active with the ability to register, even though its social channels have not been updated for months.

Crypto regulation in Brazil

According to local newspapers, new regulations require intermediaries in the cryptocurrency sector (i.e. exchanges) to provide information to the authorities on the identity of those who carry out crypto transactions. The rule has actually been in force since last July. Today it is reaping its first victims, despite the fact that the market period has seen a sharp increase in cryptocurrency prices, which usually coincides with an increase in volumes. 

However, the requirement to report all transactions to the Brazilian authority, the Secretaria da Receita Federal do Brasil, under penalty of a fine, has clearly discouraged some exchanges.

In reality, there is no real regulation of the cryptocurrency sector in Brazil. Several bills are being studied by parliament, which aim to give a regulatory framework to the market. In the meantime, a stricter regulation has been enough to put the sector into crisis.

Eleonora Spagnolo
Eleonora Spagnolo

Journalist passionate about the web and the digital world. She graduated with honours in Multimedia Publishing at the University La Sapienza in Rome and completed a master's degree in Web and Social Media Marketing.

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