Home Finance NewsPress Releases Grupo XP the Brazil Based Brokerage to Launch Crypto Exchange

Grupo XP the Brazil Based Brokerage to Launch Crypto Exchange

grupo XP

Grupo XP, the largest investment brokerage and retail stock exchange from Brazil is set to establish cryptocurrency exchange services for retail investors.

“XP Investimentos SA”, is a holding company owned by Grupo XP.  Grupo XP based in Rio de Janeiro has been offering securities brokerage, investment advisory, and insurance via Private Company Formation.

Early this week, Guilherme Benchimol, CEO of Grupo XP’s at an event in Sao Paulo, spoke about the launch of the new platform that will provide, Bitcoin and Ethereum, exchange services in the coming months.  The company is not completely enthusiastic about testing the waters of this risky and unregulated ecosystem.

Investors in Brazil have five times more popularity with respect to Bitcoin.  The popularity of cryptocurrencies in Brazil is at par with stocks.  This is the major reason for why Grupo XP is venturing to establish the cryptocurrency exchange platform.  Statistically speaking, there are only 600,000 of them who are investing in stocks; however, 3 million Brazilians have exposure to bitcoins.

Benchimol; however, is not as excited about the new product offered in his exchange.  He stated, “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.”

Thiago Maffra will be running the exchange.  The cryptocurrency exchange platform will be known by the official name XDEX with a total of 40 employees.  This platform will be operated independently of the other platforms.

Previously, instances of retail exchanges like NYSE and NASDAQ entering cryptocurrency markets were seen. Grupo XP venturing into cryptocurrency markets is the latest in the line of traditional investment companies taking up on this path.

The coming of this independent broker into the cryptocurrency ecosystem will ease up the attitudes of investors in the coming days.  However, the anti-trust watchdog of Brazil is investigating into whether the top banks in the country will be halting the services they are providing to companies focusing on digital currency.

Previously, Ilan Goldfajn, Brazil’s Central bank Chief “Compared cryptocurrency with a Ponzi scheme and a bubble.”

The Administrative Council for Economic Defense is currently exploring “the Banco do Brasil, Banco Santander Brasil, Banco Inter and many others with respect to closing down on crypto platforms’ accounts.”

The Brazilian Government is regulating cryptocurrencies, thereby providing for strengthened frameworks that will function to safeguard the interests of the investors who are interested in the newer forms of digital currencies.  The tax laws for these investments will as well be regulated.

Of note “Banking giant Itau Unibanco Holding SA consented to buy a minority stake in the organization a year ago, a deal that valued it at 12 billion reais.”

CVM is the main regulatory authority in Brazil. “The CVM Board is composed of a Chairman and four Commissioners nominated by the President of Brazil and approved by the Senate.”  They have released a document that comprehensively explains the steps to be followed when it comes to adding cryptocurrencies to the investment portfolios.  This comprehensive document is particularly useful to fund managers.

Read more about:
Share on

Steven Anderson

Steven is an explorer by heart – both in the physical and the digital realm. A traveler, Steven continues to visit new places throughout the year in the physical world, while in the digital realm has been instrumental in a number of Kickstarter projects. Technology attracts Steven and through his business acumen has gained financial profits as well as fame in his business niche. Send a tip to: 0x200294f120Cd883DE8f565a5D0C9a1EE4FB1b4E9

Crypto newsletter

Get the latest Crypto & Blockchain News in your inbox.

By clicking Subscribe, you agree to our Privacy Policy.