Along with the heated market of 2020, came a movement of crypto exchanges looking for your place in the sun. Several brokers such as Huobi, OKX and CoinBene tried to establish themselves on Brazilian soil.
In 2022, even with the market down, the movement continues with Binance, bitso and other brokers.
In addition, major banks and fintechs have also announced their own currency trading platforms. cryptocurrencies like Xtage from XP, Mynt from BTG PactualMercado Pago and even the Nubank entered this market.
O Crypto Times spoke with spokespersons of some brokers that are operating in Brazil to understand what they think about the movement of these fintechs, and the arrival of their direct foreign competitors.
“Salt-free version of the crypto universe”
Fabricio Tota, Bitcoin Market New Business Director. says that the broker’s differential over banks is direct access to cryptoassets.
Tota refers to the fact that platforms launched by banks do not yet have the functionality to withdraw or deposit in cryptocurrencies, however some of them like Mynt from BTG have already announced that it is in the plans.
“That [poder sacar e depositar em cripto] means that the crypto asset is in fact the customer’s and can be withdrawn at any time. The crypto world is open by definition, and the asset purchased on a platform can be withdrawn to a customer’s own wallet, which is something very powerful,” he says.
According to Tota, in addition to the sovereignty that this possibility brings to the individual, he can interact with some Defi protocol. [finanças descentralizadas]buy a NFT and sell on another platform.
“The possibilities are endless. The offer in banks and stockbrokers is super restricted, the customer is exposed to price fluctuation, but cannot withdraw the assets. It removes a fundamental characteristic of crypto-assets”, he says.
Bitcoin Market New Business Director says that banks indirectly represent competition with crypto exchanges, “even though they offer this unsalted version of the crypto universe,” he says.
“In addition to the super restricted offer, most of them offer only BTC and ETH. Today we offer more than 200 cryptoassets, including cryptocurrencies, backed tokens, fan tokens and NFTs.”
However, he still comments that banking platforms may lose customers to brokers in the future.
“O crypto market, although it has grown a lot, it has a lot of potential to grow. Maybe it’s a gateway for some people, but the chance of falling in love and wanting the full version of the experience is pretty big, in my opinion,” he says.
Tota goes on to say that the market is still going to grow a lot, and that could also influence brokerage firms that are coming from abroad.
“As long as they adhere to the laws and rules of our country, they are welcome. What they cannot do is have weak money laundering prevention policies, with the lame excuse of “being global”, as we have observed,” she says.
The examples of money laundering, fraud and other crimes that have passed through these exchanges are numerous, as he says.
For him, a crypto exchange needs to focus on several points to attract a substantial customer base. Among them are a great experience, diversity of products, excellent service, security and credibility.
When asked about the target audience of crypto banking and exchange platforms, Tota says he believes there is no difference.
“I believe it is the same. Crypto is for everyone. Clearly the idea is to take advantage of its large customer bases and try to show one more product, taking advantage of the attractiveness of the crypto universe. But having this access directly with someone who specializes in the subject is always better”, he concludes.
Crypto withdrawal missing, got it?
José Artur Ribeiro, CEO of Coinext, also comments on the issue of bank platforms not allowing cryptocurrency withdrawals.
As he explains, it is a fundamental difference, and without withdrawals, users will only be exposed to the price of crypto. The platform would serve well, if the user chooses the exposure, even without the withdrawals.
“The price of cryptocurrencies on these platforms are also usually higher, because of the ‘spread’ [diferença], which, most likely, the platforms themselves determine. As a rule, the price tends to be higher than at brokerages”, he explains.
Ribeiro says that this lack of withdrawals can be very relevant for those who operate as a trader, as it makes an arbitrage scheme impossible – buying in one broker and selling more expensive in another.
However, the CEO comments that he believes the entry movement of these banks is super important, as it validates the thesis that “crypto assets are here to stay”.
“The entry of these ‘players’ corroborates the ecosystem, validating that the asset is really something incredible. We are facing a revolution”, he says.
For Ribeiro, there is a market for everyone. “This new economy is just beginning. It has a huge market. I emphasize that we are talking about 1%, or 1.5% of the Brazilian population that is registered with a broker. Just there, you can see the size of the market,” he says.
Regarding crypto exchanges that are moving to Brazil, Ribeiro recalls a similar scenario in 2018, with the arrival of several exchanges such as
“The truth is that all those who entered 2018 are no longer in Brazil. doing business in Brazil is complex. Brazil is a country with its peculiarities,” she says.
For him, the movement of internationalization and localization of a business in itself is already something complex.
“I don’t know if all these players that came here, largely because of the growth that the market went through last year, will be able to stay or continue in Brazil. One or the other I believe so, we have a great market, but in others they no longer see a great future”, he says.
According to him, some international players have already taken initiatives for inorganic growth through partnerships with local brokers.
If you can’t beat them, make them join you
Binance calls itself the largest global ecosystem infrastructure provider blockchain and cryptocurrency, with a suite of financial products that includes the largest digital asset exchange by transaction volume.
For this reason, the brokerage’s narrative was to be a technology provider, rather than a competitor.
“This infrastructure makes it possible for various participants, including other exchanges, to enter this market through the products and services offered by Binance, such as Binance Cloud (cloud), BNB Chain, which is Binance’s blockchain, and BNB, cryptocurrency. with the third highest market value in the world, for example”, he says.
According to them, globally, the Binance ecosystem is responsible for securing the majority of market liquidity for most listings.
“Binance believes that today there is room for many participants to act within the crypto market in Brazil and worldwide. We are leading the global crypto industry development process, working in partnership with regulators, lawmakers and governments around the world to ensure a safe and inclusive environment.”
For Binance, the moment is of increasing use of this technology, with increasing demand for products. “The more people know about blockchain and crypto, the more the market will grow,” he says.
“O Brazil is an extremely relevant market for Binance and we will continue to invest and expand services for local users, as well as contribute to the development of the blockchain and crypto ecosystem in the country”, he says.
This includes industry regulation, according to the statement. Binance cites the announcement, in March, of the acquisition process of the local brokerage Sim;paul, a company authorized by the central bank and for Securities and Exchange Commission (CVM).
Who’s Afraid of “Crypto Competitors”?
For Thales Freitas, CEO of Bitso, the world of cryptocurrency platforms is becoming more diverse, which means that new competitors can emerge in the market every day.
This is a natural and important process for market innovation, according to Freitas.
“More important than pointing out who is our competitor or not, what I can tell you today is that we came to Brazil to be the link between the traditional financial system and the new digital finance system of Crypto and DeFi, because we believe that the cryptoeconomics opens up a world of possibility to people and can really revolutionize finance,” he says.
According to the CEO, Bitso’s mission is to make crypto useful and innovate the market. “We are not just an exchange, we offer much more than just the purchase and sale of crypto assets”, he comments.
For Freitas, the broker’s differential is to offer humanized and personalized customer service, 24/7, in Portuguese.
“And it’s made by people and not robots, which gives you the security of knowing that you can solve a problem or a question at any time”, he concludes.
The arrival of other players
In addition to domestic and foreign exchanges and banking and fintech platforms, the crypto technology market in Brazil has another widely disputed sector: tokenization.
The tokenization of traditional assets through blockchain is something that companies like Liqi, Vórtx and Bolsa OTC are looking to get their hands on. Check out the exclusive interview given by Crypto Times with Keiji Sakai, investor and board member of Bolsa OTC, the first digital asset trading platform in Brazil approved in Bacen’s Regulatory Sandbox.
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Disclaimer
Money Times publishes informative articles of a journalistic nature. This publication does not constitute an investment recommendation.
Source: Moneytimes
I am an author at Global happenings and I mostly cover automobile news. In my time working in the automotive industry, I have developed a keen interest in the latest developments and trends. My writing skills have also allowed me to share my knowledge with others through articles and blog posts.
