Brazil’s XP Investimentos Opens XDEX Crypto Exchange Despite CEO’s Prior Contradictory Wishes
Owner of Brazil Investment Firm Decides to Launch Crypto Exchange, Despite CEO’s Wish That Crypto “Didn’t Exist”
XP Investimentos, which owns the largest investment firm in Brazil called XP Group, has made the decision to bring a cryptocurrency exchange to their company. However, it does not seem like everyone is on board. In fact, Bloomberg reported that CEO Guilherme Benchimol said,
“I must confess, this is a theme I’d rather didn’t exist, but it does. We felt obligated to start advancing in this market.”
Still, he is giving into the demands of investors in the industry, following six months of rumors that this would begin. The platform will be establishing both Bitcoin and Ethereum in their trading options.
Brazil has seen an increase in the trading activity of Bitcoin in their country, which contradicts the figures that have arisen in other South American markets like Chile, Argentina, and Venezuela. In fact, the weekly volume in Brazil for LocalBitcoins, for example, tops 1.5 million reals, which is about $367,000 USD.
The goal to enter the crypto market for XP Investimentos has been in the works for at least five months, though many insiders told the press that it was launching before the company official acknowledged it. In effort to commit to their goals, they registered a new project called XP COIN INTERMEDIACAO about a year ago.
Ultimately, by the time this platform launches, it will be called XDEX, which some experts believe that is a homage to the exchange industry as a whole. The project will include 40 team members, based on information received by Bloomberg.
As great of a move as this is for consumers in the area, the entry into the crypto industry for Brazil means that they will be in the middle of a fairly hostile landscape for banks. Much like the issues that Poland has had in recent months, there is a government entity that is looking through claims that banks are threatening to shut down accounts, if they want to opt out of crypto.
The agency told Reuters, “…It does not seem reasonable for banks to apply restrictive measures a priori on a straight-line basis to all cryptocurrency companies, without examining the level of compliance and anti-fraud measures adopted by individual brokerage firm.”