Many BTC companies may have to close in Brazil

[asriloni]

Having to require an exchange with a $7.2 capital in total is actually needed. That gives them the proof that they'll be able to operate with that money for their users.

And they're not just some exchange that do process their customers trade but can also have that liquidity to provide and to show to their local market.

Isn't it timely that all of these changes have came when Binance entered? there can be some collaboration with them to reduce competition.

Yes, it's just the big tries to increase their domination in the brazilian market, but it's not something wrong because exchange sites also need to prove its liquidity. Unable to prove it will result the platform will run away with people's money.

Since the arrival of the giant Binance, coupled with the new regulations, some companies have already closed down,  there are few options left, and now there will be even fewer
Perhaps the market will shift to P2P, but Brazil is one of those countries that would rather stifle development than support and encourage small businesses to thrive

What’s the situation like in your country?

It feels like a monopoly rather than try to provide a friendly regulation for all of parties who provide virtual asset service. The only big entity like Binance who can afford to fulfill requirement. Does the big crypto service ordered this regulation to be created? 

Beside that this regulation is good from user's POV because liquidity is actually needed to ensure the entities who provide virtual asset service can run its service without facing difficulties.

yet i don't think market will shift to the p2p because Brazil is also tightening the rules to control it by freezing any suspected crypto transaction for 24 hours, but it can be longer depending on the result from investigation.

Their new regulation is also giving a sanction to the bank who also faciliated people to do p2p transaction, which makes them being more sensitive to the any of suspicious transactions. Anyone who does p2p potentially dig his own graveyard.

[pewboy]

I detest the government coming to the public to declare that the supported the use of crypto from the list of suggested platforms that are regulated by them, because all of these are going to be in our favor, but rather in the interest that is going to benefit them, as they will incentivize every user who is identified on the platform. You should embrace decentralization and convert anything that links us to a centralized crypto platform being regulated by leaders.

decentralization is a very important issue, everyone must understand that by using cryptocurrencies you are subject to control by the authorities and that it is absolutely in their interest not to have kyc and to make everything more hidden, but not to do something illegal, just to try to protect themselves in case things go wrong, bitcoin is a tool and must be used well, not as they impose on us.

[rdluffy]

Well if they can't live with the new Brazilian Crypto-currency capital rules then they need to close up it's as simple as that and there should not be any big deal to that.
I think this would help in the Brazilian Crypto-currency companies regulations, many of these companies should not even be existing the first place and this law is helping flush them out.

I strongly disagree with that line of thinking

When you implement a regulation and likely 80 or 90 percent of businesses won’t be able to continue operating, there’s something wrong with the regulation
Perhaps they’re favoring companies that are already very large too much and suffocating the small ones

When you discourage small businesses and force them to be sold or to shut down, you send the message that there’s no place for small companies, innovation, experimentation, startups, etc

Just imagine if Binance were the only player in the market?

I like where this is all going, like what happened to P2P normally? I feel people are too lazy it's why they are using centralised exchanges, if privacy is very important to people I believe that even Binance exchange will struggle.

So I am in support and good mood that this is happening, let this continue and people will start to have some senses about all the wrongs they have been doing without even knowing.

We should all be using Dex or P2P to buy and sell Bitcoin, centralised exchanges means total control and rule over cryptocurrency holders around the world.

P2P services are emerging here in Brazil, connecting BTC, fiat, stablecoins, payments, and credit cards
At least there’s still a way out with decentralization

[Davidvictorson]

Since the arrival of the giant Binance, coupled with the new regulations, some companies have already closed down,  there are few options left, and now there will be even fewer
Perhaps the market will shift to P2P, but Brazil is one of those countries that would rather stifle development than support and encourage small businesses to thrive

What’s the situation like in your country?

There’s nothing that will happen with crypto that hasn’t happened in another country
Some years ago, it happened in my country and we felt very betrayed by Binance even though we knew it was not their fault.
We quickly switched to P2P and we survived without them.
This is what will happen in Brazil .

[CryptopreneurBrainboss]

What’s the situation like in your country?

The situation over here in my country is that centralized exchange's aren't even established in the country and the government aren't that friendly yet with the industry but P2P is striving very well over here but that has it's own challenges but we're still scaling through. I hate hearing news about companies in the space being affected as they've to closed down because that isn't giving the adoption of Bitcoin any good push.

We don't have any registered company in my country so I always envy the countries that does and Brazil is one of them but with this news, I feel devastated. The regulations are becoming more harsh on the industry instead of becoming more friendly as they should have been. I still don't get why countries that are struggling financially that should be welcoming new developments like crypto industry to help them boost their economy as they tax companies reasonably to encourage their continues operations in the country and offer their citizens jobs.

What the Brazilian government are doing is going to hurt them later but they don't know this, the unfavourable conditions being introduced for crypto business isn't a good business choices for them  as they should be taking advantage of the industry instead of chasing it away and it's a mistake that the government are going to regret.

[IjawMan]

I still don't get why countries that are struggling financially that should be welcoming new developments like crypto industry to help them boost their economy as they tax companies reasonably to encourage their continues operations in the country and offer their citizens jobs.

The aspect of how this new development by the Brazil government affects jobs that are created for the citizens is what I was specially concerned when I read about the article. Government can be a daft at times with their policies that are rather making lives harder for citizens than it should be ameliorating.

Over 300 virtual currency business services and it is just 10 that are projected to meet the criteria to still operate. I can only imagine how many citizens would be thrown back into the labour market for job hunting over again.

Even when this might be viewed as a means of regulation on the cryptocurrency space in Brazil to protect investors and traders from fraudulent exchanges, the approach is too extreme and is most definitely going to hit on the economy somehow in a negative way.

What the Brazilian government are doing is going to hurt them later but they don't know this, the unfavourable conditions being introduced for crypto business isn't a good business choices for them  as they should be taking advantage of the industry instead of chasing it away and it's a mistake that the government are going to regret.

Whosoever had given the government this advise does not mean wel for them cause crypto market is the new gold mine for countries now in raising revenue for it treasury which as well stretch towards technological and infrastructural development.

[shinratensei_]

Having to require an exchange with a $7.2 capital in total is actually needed. That gives them the proof that they'll be able to operate with that money for their users.

And they're not just some exchange that do process their customers trade but can also have that liquidity to provide and to show to their local market.

Isn't it timely that all of these changes have came when Binance entered? there can be some collaboration with them to reduce competition.

I always have the impression that to create an exchange you need much more than that, the $7.2 million capital requirement is actually nothing but as it turns out, other countries only requiring small capital requirement. The more important point in this regulation is requirements capital for custodial service, it could potentially curb the smaller payment processors therefore less crypto adoption on the area, beside that it isn't really a big deal. A centralized exchange should operate and kickstarted with high liquidity otherwise risk of insolvent is high, I actually agree with the regulation in this case. If they can't fulfill the bare minimum of requirement, they shouldn't have started a centralized exchange. We're talking about the wellbeing of retailer from getting their money snatched in insolvent exchange.