By George Ward
Crypto supporters in Brazil have called on lawmakers to revisit the pending crypto bill. This is coming after the fall of FTX caused severe panic in the global crypto industry.
Several crypto firms have suffered huge losses due to the latest FTX bankruptcy crisis. As a result, Crypto investors are seeking new ways to manage and store their digital assets.
Meanwhile, countries are urging policymakers to be more stringent on the crypto sector. They believe sound regulations would prevent a repetition of the FTX situation.
Reuters reported that Brazilian crypto enthusiasts are asking lawmakers to revisit the country’s pending crypto bill. The bill aims to provide regulatory oversight for the country’s crypto sector.
Most government officials called for swift regulation of the crypto sector following the recent bankruptcy filing of the FTX crypto exchange. Also, other countries are evaluating the situation to ascertain the cause of the crisis.
Roberto Dagnoni, a principal executive at Mercado Bitcoin, a crypto exchange, stated that the FTX crisis also has a good side. The good side is that lawmakers would speed up efforts to regulate the sector.
According to Dagnoni, only a few market players in the crypto sector follow laid-down rules. Others do as they please, thereby putting investors at risk.
Meanwhile, Brazil’s Senate passed the pending crypto bill at the beginning of the year. However, it still awaits approval from the lower chamber.
The regulation, if endorsed, would change the crypto climate in Brazil. For instance, crypto entities must establish physical offices before operating in Brazil. There would also be fines for offenders.
Rising Crypto Adoption In Brazil
Furthermore, a report from Chainalysis noted that Brazil is among the ten most active crypto markets in 2022. Fernando Furlan, the ex-president of Brazil’s blockchain association, also sided with Dagnoni.
Furlan argued that the FTX crisis is enough to push policymakers to action. Moreover, he believed the regulation would benefit crypto investors in Brazil.
Last week, a local newspaper, Folha de S. Paulo, quoted Arthur Lira, the Lower House Speaker, stating that the chamber would vote on the legislation before 2023.
Meanwhile, Joao Pedro, the head of the country’s securities regulator, has also hammered on the need for crypto regulations. In a public meeting, he noted that Brazil is close to adopting its first crypto bill.
However, FTX’s operation in Latin America is small compared to other regions. Besides, Mercado Bitcoin, the dominant crypto firm in the area, had zero exposure to FTX.
Mercado’s primary function in the region is to store its users’ crypto assets. According to Dagnoni, the crypto exchange has witnessed massive growth despite the current downturn in the crypto market.