Brazilian Top Bank Itau Unibanco Introduces Bitcoin Trading
Itau Unibanco is a Brazilian banking enterprise that recently introduced Bitcoin trading. The new feature is an extension of the trading services for its current clientele.
A report published in Reuters indicated that Itau, one of the biggest banks from Brazil in terms of AUM has introduced Bitcoin trading services. The platform has also added other digital currencies in the new investment service such as Ethereum.
Itau will Act as a Custodial Service Provider
Guto Autunes, the digital head of the bank told media that the banking enterprise will bring more cryptocurrency trading offers for its consumers. On this account, Itau officials noted that it will serve as a custodial services provider for cryptocurrency investors.
The management reported that the consumers at the trading platform of the bank will not be able to make withdrawals or deposits for a specified duration using external wallets.
New Bitcoin Trading Features
Itau executive briefed media that the investors on the trading platform of the bank can store the money in their bank accounts. In this manner, they will have the guarantee of balance sheet as a warrant for security of the invested amount.
At the same time, major lending firms from the country such as Santander Brasil, BTG Pactual, and Unibanco have started to recruit more employees and resources for nation-wide debut of digital Brazilian real named Drex.
Itau also launched digital asset custodial program at the start of the ongoing year. Autunes claimed that 85% of its clients have shown an interest in retaining their funds within their bank accounts.
On the other hand, two major players namely XP Investmentos and PicPay revoked cryptocurrency services without issuing any public statements. J&F the conglomerate that owns PicPay noted cited regulatory pushbacks as reasons for termination of the cryptocurrency subsidiaries.
Brazilian Central Bank Increases Regulatory Scrutiny
Statistics issued by the Central bank of Brazil reported that since the start of the ongoing year cryptocurrency imports increased by 44% in comparison to last year. Banco Central Do Brasil governor reported that there was a visible increase in cryptocurrency trading within its jurisdiction.
As a result, the Central bank has introduced stringent regulations for digital currency investors. Roberto Campos Neto, reported the significant rise in cryptocurrency imports at the Finance and Taxation Commission to the Parliament.
The governor reported that total funds to be around 35.9 billion Brazilian reals or $7.4 billion. At the same time, Neto noted the popularity of stablecoins that are used for payment options rather than investment products. He claimed that the Central bank is working on implementing austere policies to manage the crypto industry and contain issues such as tax evasion or illegal financial activities.
The government of Brazil has appointed Comissao de Valores Mobiliarios or federal securities regulator of the country to create and implement cryptocurrency regulations in the region.
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