Itau Unibanco, Brazil’s largest private bank, trades Bitcoin and Ether due to the country’s developing regulatory framework.
Itau Unibanco, the biggest private bank in Brazil, has entered the cryptocurrency market. According to a Reuters story, the lender is providing cryptocurrency trading services, initially dealing in Bitcoin and Ether. The growth of cryptocurrency laws in the Latin American nation serves as the foundation for Itau Unibanco’s foray into the digital asset space.
Its debut into the Brazilian cryptocurrency market puts it squarely against regional competitors like Mynt and the multinational behemoth Binance. Itau’s twin function as a digital asset custodian and trading platform sets it distinct from competitors.
With custodial services for cryptocurrency users’ assets, Itau hopes to make a name for itself in the rapidly expanding Brazilian digital market. The bank hopes to expand its cryptocurrency holdings, even if Bitcoin and Ether will always be the primary emphasis.
Brazil’s Changing Cryptoscene
Brazil’s financial system is about to undergo a dramatic change after the Senate approved a bill that would have imposed a 15% income tax on gains made in cryptocurrency that are held outside of the country and exceed $1,200. The president of the nation must still approve this proposed rule before it can go into effect on January 1.
Global exchanges have noticed Brazil’s growing interest in digital assets. In August, Binance launched Binance Pay in the nation to provide contactless cryptocurrency payment services in collaboration with regional businesses such as Weo Games.
Global Interest Encourages Brazil’s Crypto Innovation
The largest bitcoin exchange in Brazil, Mercado Bitcoin, received a payment institution license from the central bank of that nation in June. This accomplishment improved its standing and opened the door for its growth in the fintech industry. With the help of this crucial license, Mercado Bitcoin is allowed to provide a variety of fintech services, including as staking, digital fixed-income investments, and other financial activities involving cryptocurrency assets.
Other companies with the Brazilian payments license include Bitso and Crypto.com in addition to Mercado Bitcoin. Coinbase has grown in Brazil and formed alliances to make it easier to deposit and withdraw local money.
In 2022, Nubank, a major player in digital banking in Brazil, also entered the cryptocurrency space. The business launched its offerings, enabling users to buy, sell, and retain Ethereum and Bitcoin. Nubank promised to provide more services besides Ethereum and Bitcoin.