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2020-02-17

Regulations hit crytpo exchanges in Brasil

Legislators in Brazil received support for crypto regulation in connection with fraud charges in Atlas Quantum, Zero10 and Trader Group last year, and in February they became aware of some of the results. Bitcoin.com reported that two major crypto currency exchanges based in a South American country have been closed due to threats of high penalties and immediate regulatory consequences. 

Acesso Bitcoin was one of those exchanges that voluntarily closed its doors. Co-founder Pedro Nunes was quoted by the news portal Portal do Bitcoin.

Latoex, another Brazilian cryptographic exchange, is facing similar problems. If it fails to comply with the suspension order issued by the Brazilian Securities and Exchange Commission, the company is considering imposing a fine of 100,000 Brazilian Real (BRD).

As Brazil does not currently have a special law on cryptography, all exchanges are covered by Regulatory Instruction 1888 issued by the Department of Federal Taxation. All companies carrying out cryptographic transactions in Brazil must report them or be fined between 500 BRD and 1500 BRD or between 120 and 360 USD.