As if it is not enough to regulate the cryptocurrency market with the continuous updating of the framework, digital currency-related businesses and exchanges are encouraging rival associations in Brazil. This only indicated that they have failed to unite both to bring under one umbrella on the strength of the blockchain technology. Though the government has issued warnings, the South American country has moved onto the bandwagon of virtual currency.
Vibrant Digital Currency Ecosystem
Brazil is having a vibrant cryptocurrency ecosystem since it has more than 1.4 million crypto and bitcoin investors in the country. However, what was concerning was the formation of an association by coming together of renowned blockchain-related virtual currency exchanges to defend the rights of the big digital currency community.
This included evangelists, investors, and enthusiasts of digital coins. Bitcoin trade, Mercado Bitcoin, and Foxbit joined hands with smaller exchanges to establish an organization known as ‘Associacao Brasileira de Criptoeconomia (ABCripto). Similarly, there are other companies in the sector, who thought that ABCripto could not control the complete crypto population in entire Brazil, has resorted to a starting of association.
These companies are led by a company, Atlas Project, which provides fintech services in the region. This association is known as Associacao Brasileira de Criptomoedas e Blockchain (ABCB). Significantly, both the associations have different views in respect of how the virtual currency ecosystem could be regulated. None-the-less, they have a common objective, i.e., to make sure that the cryptocurrency industry is vibrant and favorable enough to businesses in Brazil.
ABCripto has indicated its determination to ensure that its association takes care of the majority of crypto-connected businesses in Brazil. The association is also keen to demand that cryptocurrencies should be treated as assets. Its VP, Natalia Garcia, indicated that the association was waiting for proper directives to be issued by the regulator. The VP disclosed that she came to know about the other association only recently.
However, she reiterated that the association is looking forward to unveiling action in alliance with some bitcoin exchanges in the upcoming weeks. She added, “I’m concerned an association does not have any relevant exchanges. Everybody on the market knew we were building an association and getting ready to talk to other players in the market.”
Open To Any Regulatory Framework
On the other hand, ABCB showed its openness to any kind of regulatory framework. However, it should not suppress the growth of the cryptocurrency ecosystem. Its president, Fernando Furlan, disclosed that his body would do everything to defend digital currency markets in the country.
The president was categorical when he said that regulations should not put an end to innovation. He pointed out about the ambiguity from a legal angle and said that based on the purposes, it should be allowed to be considered as payment means or a financial asset.
Incidentally, ABCB has been in existence since October last, i.e., before ABCripto was established. However, the two bodies are ready to forget about questionable activities of each other and focus more the tasks ahead of them.