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Brazilian Crypto Businesses, Exchanges Create “Rival” Cryptocurrency Associations

Last Updated March 4, 2021 5:06 PM
Francisco Memoria
Last Updated March 4, 2021 5:06 PM

Brazil’s largest cryptocurrency exchanges, including Bitcointrade, Mercado Bitcoin, Foxbit, and others, recently joined forces to create a cryptocurrency association whose goal is to defend the interests of cryptocurrency users. The organization, dubbed Associação Brasileira de Criptoeconomia (ABCripto) recently found out other companies created a “rival” association.

Headed by fintech firm Atlas Project, other crypto-related companies seemingly joined forces to create another organization, dubbed Associação Brasileira de Criptomoedas e Blockchain (ABCB).

According to local news outlet Portal do Bitcoin , the two projects seemingly have different takes on potential cryptocurrency regulations, but believe they should work together. Natalia Garcia, ABCripto’s vice president, revealed she recently found out about ABCB.

Garcia’s association will reportedly start working with the country’s cryptocurrency exchanges, along with other firms, in “two to three weeks.” Speaking to the publication, she stated (roughly translated):

“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.”

ABCripto’s goal is to create various categories, so a large number of crypto-related businesses can join it. The association is set to advocate for cryptocurrencies to be regulated as assets in the country. Garcia revealed it’s currently “looking for regulators so they can tell us the best way to regulate.”

ABCB, on the other hand, hasn’t yet taken a position on how cryptocurrencies should be regulated in Brazil. Per the association’s president, Fernando Furlan, the association will “defend the cryptocurrency markets in Brazil, defend privacy, and regulations that won’t end innovation.”

ABCB is set to become a venue that’ll help guide its partners through a set of principles, while providing regulatory assistance. It’ll connect authorities and regulators to crypto businesses, promoting the debate.

Regarding regulations, Furlan stated:

“There is legal uncertainty. Depending on the purpose, it may be considered a means of payment or a financial asset. “

ABCB has reportedly been “under construction” since October 2017, roughly a month before ABCripto was founded. The organizations have revealed they could open a “communication channel to work together for the good of the country.”

Featured image from Shutterstock.