Groupo XP, Brazil’s biggest independent brokerage, is launching an exchange soon and officially joining the crypto craze. The new exchange will be open for trading Ethereum and Bitcoin trading in the coming months, Guilherme Benchimol, Chief Executive Officer said at an event in Sao Paulo. Grupo XP is the owner of XP Investimentos SA. According to Benchimol, around 3 million Brazilians have exposure to Bitcoin and that was a reason strong enough to push the firm to venture into the crypto business. Another point of significance here is that out of the 3 million Brazilians only around 600,000 invest in stocks.
Thiago Maffra will be going to run this new exchange, that will be set apart from XP’s other brokerage business. The new exchange will be known as XDEX and will initially start off with 40 employees. Brazilian regulators released a set of rules this week that facilitates funds to invest in crypto-assets abroad, with some limitations.
Apart from launching a new crypto exchange, Groupo XP is also launching a bank in the next few months. XP intends to have around 1 trillion Reais ($245 billion) in its custody by 2020. Groupo XP has been rapidly expanding over the last couple of years by offering online investment platforms to the growing middle-class population of Brazil, as stated in the Bloomberg report.
The firm had been planning its entry into the crypto market since April. It also registered an entity called XP COIN INTERMEDIACAO last year in August. However, Brazil’s wider cryptocurrency business sector is presently struggling with an increasingly hostile landscape involving banks.
A government agency is now investigating claims that businesses are subject to account shutdowns by institutions that would rather not deal in crypto-related transactions. This situation is similar to complaints in Poland in the last few months.
The government agency said that it isn’t reasonable for banks to apply restrictive measures on all crypto exchanges without examining the anti-fraud measures adopted and the level of compliance followed by the individual brokerage firms, as stated in the Bitcoinist report.
The post Brazil’s Biggest Independent Brokerage, Groupo XP Launching Crypto Exchange Soon appeared first on OWLT Market.
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