🇧🇷BCR #39: Crypto Bill Back on Senate Agenda After Another Delayed Vote
Plus, Neymar buys another ape NFT; Brazilian crypto investors realized $2.5bn in profits in 2021, per Chainalysis
E aí gente, tudo bem?
⏰Brazil’s Federal Senate once again postponed a much-anticipated vote on legislation that would establish a regulatory framework for cryptocurrency businesses operating in the country.
Originally scheduled for April 12, the vote was delayed to April 19 because there wasn’t a sufficient quorum of senators available to vote. However, the bill has been delayed yet again as the vote was blocked to deliberate another bill at the request of Sen Wellington Fagundes.
The bill, known as Projeto de Lei 3.825, is back on the Senate agenda for this Tuesday, April 26, as reported by Livecoins.
If approved, the Senate bill will move to the Chamber of Deputies where it will receive a full plenary vote.
🔥 In other news, Brazilian crypto investors realized US$2.5bn in profits in 2021, according to a new report from Chainalysis, a blockchain analysis firm. This was a massive jump from 2020, when investors realized US$300m in gains.
Brazil’s gains were the 15th highest of all markets surveyed, per the report. By contrast, US investors saw US$46.9bn in profits for the year.
The report as it stands doesn’t break out any other specific details on the Brazil market. However, I will (hopefully) be talking to the lead economist from Chainalysis on my podcast this week to go into more depth here.
🎙Also be sure to check out the most recent BCR podcast with Fabricio Tota of Mercado Bitcoin, where we chat about MB’s hockey stick growth of the last 18 months, crypto regulation in Brazil and roadmap ahead for MB and 2TM, its parent company. The episode can be found on Spotify.
👩💻 Brazil Crypto Jobs Spotlight
Bitso announced the hiring of Thales Araújo de Freitas as its Brazil country manager. A 15 year veteran of Citibank, HSBC and the fintech world, he will be responsible for driving Bitso’s strategy and expanding its footprint in the country. Freitas commented:
“I feel extremely happy and honored to be able to lead the company's operations in the country, together with a talented and enthusiastic team that is growing every day. My mission is to work to amplify the adoption of this revolutionary technology with the highest quality and safety standards, establishing a relationship of trust with customers, partners and the population as a whole.” (CoinTelegraph Brasil) (BlockNews)
🗞Brazil Crypto News Rundown
Brazilians have invested nearly R$3bn (US$625m) in crypto ETFs listed on the B3 exchanges. More than 233,000 investors have piled into the eight crypto ETFs that have been listed over the last year. (O Globo)
Valor Investe ran a lengthy article exploring the differences between Brazil and the United States on the question crypto ETFs and why the US is so reluctant to approve a spot bitcoin ETF. It features quotes from Brazilian experts like Marcos Viriato of Parfin, Bruno Sousa of Hashdex, Alexandre Ludolf of QR Capital and Luis Kodic of B3. Ludolf explained:
“The quality of Brazilian regulation allows for one of the best and cheapest crypto products in the world. In Brazil, as incredible as it may seem, regulation has evolved faster than the American one, very close to Canada, the first developed country that allowed cryptocurrency ETFs in a regulated way,”
Itaú is exploring new investment products that would give customers ability to buy and sell crypto directly. While the bank currently offers exposure through a new fund that invests in Hashdex crypto ETFs, Fernando Beyruti - global head of private banking - said that there is increasing demand for crypto advisory and direct purchase products. Plans are in the research phase for now, he said, but once a decision is made it will be “plug and play” because “market players are already prepared to meet banks with these new demands”. Heretofore, Itaú - one of Brazil’s largest banks, has been known for its opposition to cryptocurrencies. (Forbes Brasil)
Wallet app Bitfy is offering zero fees on the purchase of Celo’s cREAL stablecoin. The promotion has no specified end date; users normally pay a 1.5% servicing fee. (CoinTelegraph Brasil)
Dash Core Group, which is responsible for the DASH cryptocurrency, announced a new partnership with Brazilian exchange Stonoex that adds new pairs (DASH/BRL, DASH/Coffee Coin) and facilitates the acceptance of Dash at several merchants. (CoinTelegraph Brasil)
Byebnk, a Minas Gerais-based fintech firm, will allow domestic investors to gain exposure to different international markets via tokenized assets. Investors can gain exposure to US equities, fixed income and real estate, as well as different types of commodities. (CoinTelegraph Brasil)
Foxbit announced the launch of a new token backed by public debt in the State of São Paulo. The third such token released by Foxbit, it will have a supply of 11,265 that will be available for R$50. (CoinTelegraph Brasil)
Crypto exchange FTX inked a R$15m (US$3.1m) sponsorship deal with Furia, the largest e-sports organization in Brazil. The deal is the largest e-sports partnership ever in Brazil, with a value equivalent to that paid by some to sponsor teams in the Campeonato Brasileiro A Series, according to Estadao, which first reported the story. (Coin Times) (CoinTelegraph Brasil)
BNDES, Brazil’s national development bank, and TCU, the Federal Court of Auditors, signed an agreement to create a national blockchain network called Rede Blockchain Brasil. The RBB’s objective will be to improve the transparency of public spending. First conceived in 2018, it will use the Hyperledger Besu and will use a Proof of Authority consensus mechanism that involves no mining.
Gladstone Arantes, head of blockchain initiatives at BNDES, commented at Ethereum Rio that the RBB is based on other initiatives from Europe, Spain and elsewhere in Latam
BNDES launched its own BNDES ERC-20 token in 2018, which was backed by BRL and could be converted into reals after a project’s completion
The agreement between TCU and BNDES is valid for 60 months
Partners in the project include Pension Technology and Information Company (Dataprev), PUC-Rio, the Information Technology Company of the state of Minas Gerais (Prodemge), Innovation Lab of the Inter-American Development Bank and Information and Communication Technology Institute of the State of Espirito Santo
In 2021, President Jair Bolsonaro also signed an order calling for the creation of an official, separate, blockchain network for the federal government as part of its digitization program (CoinTelegraph Brasil) (Exame) (Portal do Bitcoin)
36% of Brazilians would be interested in paying for physical purchases with cryptocurrency, according to a new survey conducted by CoinsPaid, while 50% of Brazilians said they view favorably companies that offer crypto payments services. (CoinTelegraph Brasil) (Exame)
Crypto asset networks and protocols could be used to intermediate financial transactions in the future, Banco Central President Roberto Campos Neto said at an event hosted by the International Monetary Fund. He said:
"People focus a lot on the asset, but the beauty of it is the 'network' that is being created with the [crypto asset] protocols. They have good features that can be used and that will change financial intermediation in the future." (CoinTelegraph Brasil) (Valor Investe)
ATRI, the Atari token promoted by Brazilian football legend Ronaldinho Gaúcho is effectively shutting down after Atari, one of the largest video game companies in the world, announced that it is divesting itself from the project. (CoinTelegraph Brasil) (Portal do Bitcoin)
Mercado Bitcoin and fintech app Kinvo are launching a new incentive providing free bitcoin education courses to customers who purchase R$50 of crypto on MB. (Portal do Bitcoin)
Wine, the wine subscription club, is accepting bitcoin payments via a partnership with Redecoin, a fintech arm of the SCF Brazil Group. (InfoMoney)
Moss, the tokenized carbon credit platform, announced that it has allocated more than R$150m (US$31m) to conservation projects in the rainforest. (CoinTelegraph Brasil)
🎮 NFTs, Gaming and Metaverse
João Doria Neto, the son of former São Paulo governor and current presidential candidate João Doria, earned more than R$200,000 (US$40,900) by flipping an NFT, according to a report by Portal do Bitcoin.
Neymar, the Brazilian footballer and now NFT enthusiast, bought an NFT from the Mutant Ape Yacht Club series for 55 ETH. His NFT, #10953, is the 1,757th rarest in the collection of 20,000. (CoinTelegraph Brasil)
The Santos Football Club and sports brand Umbro are teaming up with NFTOYER to produce an NFT collection memorializing Chorão, the lead singer of the band Charlie Brown, Jr. (CoinTelegraph Brasil) (Exame)
The first two collections of Volkswagen Brasil’s NFT launch sold out in 7 hours, with 600 packs being sold. The NFTs are developed in partnership with the Brazilian firm One Percent. (CoinTelegraph Brasil)
49% of Brazilian gamers know what an NFT is and 64% have heard about the metaverse, according to the Game Brasil Survey. 17% of gamers also invest in crypto, with bitcoin being the preferred asset. (CriptoFacil)
Mangueira and Grande Rio, two of Rio de Janeiro’s largest samba schools, are launching their own NFTs for Carnaval 2022. (CriptoFacil)
Esporte Clube Bahia released the second set of its line of NFT collectibles that highlight the team’s history, in partnership with Block4. (CoinTelegraph Brasil)
A team of surfers in Espírito Santo have launched an NFT collection to help finance their search for the next big wave. The project received a US$10,000 backing from the Harmony protocol. (CoinTelegraph Brasil)
🏛 Public Policy, Regulation and Enforcement
GAS Consultoria, an alleged crypto pyramid scheme operated by “Pharaoh of Bitcoins” Glaidson Acácio dos Santos, launched a new Instagram account called “Talk to Glaidson” that will serve as a communication channel to customers. (Portal do Bitcoin)
A Brazilian entrepreneur unknowingly lost R$230,000 last October when fraudsters opened an account on Binance using his personal data. The criminals apparently posed as car salesmen and then created an account using the man’s name, CPF and a photo of someone else’s ID. When money for the supposed car purchase was deposited, it was transferred to the fake Binance account. (Portal do Bitcoin)
In an operation called “Cryptowhite”, Sao Paulo civil police served 42 search and seizure warrants in a scheme that laundered as much as R$657m (US$137m) using crypto. (Portal do Bitcoin)
MSK Invest, a supposed cryptocurrency pyramid scheme that raised R$700m (US$146m) from investors and stopped making payouts late last year, filed for bankruptcy protection and notified that it is unable to reimburse investors whom it had committed to paying as part of a judicial reorganization. The company asserts that the high number of lawsuits seeking to block its assets have contributed to its inability to pay. (Valor Investe)
Valor Investe ran an interview with a young anonymous investor in MSK Invest who lost so much money in the scheme that they “don’t have the money to afford a lawyer”.
Federal Deputy Luizão Goulart introduced legislation that would legalize the use of smart contracts in Brazil. (Livecoins)
The Supremo Tribunal da Justiça, Brazil’s supreme court, has ordered Banco do Brasil to reopen the account of a bitcoin brokerage and return frozen funds. The bank closed the (undisclosed) company’s account in 2018 under allegations of financial fraud. The judge also ordered that BB must pay the plaintiff’s attorney fees. (Livecoins)
Federal judges working in the criminal court system will participate in a training on cryptocurrencies planned by the STJ. (Livecoins)
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