Brazilian Cryptocurrency Regulation Tightens, Exchanges Are Hit Hard

The cryptocurrency exchanges in Brazil are suffering from increased pressure by legislators, the latest cryptocurrencies news show. The Brazilian cryptocurrency regulation was not known as strict so far but legislators have gotten support to regulate the crypto market following allegations of fraud at Atlas Quantum, Zero10, and Trader Group last year.

February saw some of the results of those actions. Meanwhile, Bitcoin.com has reported that two major cryptocurrency exchanges based in the South American nation have been shut down following the threats of heavy fines and the immediate effects of the regulations.

Acesso Bitcoin was one of the exchanges suffering from the new Brazilian cryptocurrency regulation – and had to voluntarily close their doors. The co-founder Pedro Nunes was quoted by the crypto news outlet Portal do Bitcoin as saying:

“After the Federal Revenue Service introduced these rules we noticed a significant decrease in the traded volume. We also feel that the market has cooled off for smaller exchanges.”

Another Brazil based crypto exchange named Latoex faces similar problems. Right now, the company is looking at a 100,000 Brazilian real (BRD) fine if it does not comply with the suspension order which was issued by the Brazilian cryptocurrency regulation body – the Securities and Exchange Commission.

Both houses of the National Congress of Brazil are looking at proposals to regulate the country and its cryptocurrency industry. A special commission is analyzing and making revisions to such a motion, Bill 2303/2015.

Meanwhile, the Senate is reviewing two other bills which are the PL 3825/2019 and PL 3949/2019. The Brazilian cryptocurrency regulation shows that no specific legislation has been enacted to establish regulations for the crypto market in the country.

Brazil is one of the countries which are stepping up when it comes to cryptocurrencies. The regulatory landscape in the country is changing and it appears that the increased interest towards crypto by the community is shaping up the regulatory climate.

Meanwhile, today’s Bitcoin and altcoin news show that BTC is suffering today and is now below $9,800. Ethereum, on the other hand, has lost 7% overnight and is at $249 while Bitcoin Cash (BCH) and Bitcoin SV (BSV) are the worst performers in the top 10, losing 13% and 15% respectively.