Brazil’s Biggest Brokerage Grupo XP Joins Crypto Market Resentfully

Grupo XP, owned by XP Investimentos has decided to finally join the crypto market despite CEO’s resentment of cryptocurrencies.

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.”

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He adds that there are around 3 million Brazilians exposure to Bitcoin and cryptocurrencies, but only 600,000 investing in stocks. And that this was the reason the firm was pushing into the crypto sector. As compared to other South American markets, Brazil has an unusual activity in the crypto market.

The exchange is set up for cryptocurrencies is called XDEX by Thiago Maffra and will comprise of 40 employees. A total of $7.3 million was set aside as capital for this investment reported Portal do Bitcoin.  This platform will allow trading of Bitcoin and Ethereum as well. Consequently, the exchange will allow OTC trading, which means heavyweight investors will show involvement.

Guilherme Benchimol adds, “The brokerage will be totally separate from our financial holding and is a 100% B2C project. In the future, if the legislation permits will include the company integration.”

Although there haven’t been any strict regulations from the government,  On December 18, the Administrative Council for Economic Defense (CADE) ruled that “the absence of regulation, in any case, should serve as an argument to block free enterprise.”

Finance Ministry’s circular provides “other assets trading in third jurisdictions, admitting and regulating in those markets.”

A Quick Glimpse About XP Investimentos

XP Investimentos is a financial firm which manages over $35 billion for over half a million clients. It is the biggest firm in Brazil. And as per the country’s regulatory agencies, it has registered XDEX INTERMEDIACAO LTDA, an investment platform for cryptocurrencies.

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Qadir AK

Qadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.

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