Brazil’s Leading Bank Enters the Crypto Space with Bitcoin and Ether Trading Services
Brazil’s largest private bank, Itaú Unibanco, has made its foray into the cryptocurrency space. According to a report by Reutersthe lender is offering a cryptocurrency trading service that initially trades Bitcoin and Ether. Itaú Unibanco’s expansion into the digital assets space is based on the progress of crypto regulations in the Latin American country.
By entering the Brazilian crypto market, it is in direct competition with local players such as Mynt and global giant Binance. What sets Itaú Unibanco apart from its competitors is its dual role as a trading platform and custodian for digital assets.
By offering custody services for crypto users’ assets, Itaú Unibanco aims to establish its presence in Brazil’s rapidly growing digital space. While the initial focus will be on Bitcoin and Ether, the bank plans to diversify its crypto portfolio.
Brazil’s Evolving Crypto Landscape
Brazil’s crypto landscape is poised for significant change after the Senate passed a bill proposing a 15% income tax on offshore crypto profits of more than $1,200. This proposed rule still needs final approval from the country’s president and could be implemented on January 1.
Brazil’s rising interest in digital assets has caught the attention of global exchanges. Binance launched Binance Pay in the country in August to offer contactless crypto payment services in collaboration with local companies such as Weo Games.
Global interest drives crypto innovation in Brazil
In June, Mercado Bitcoin, Brazil’s largest cryptocurrency exchange, received a payment institution license from the country’s central bank. This success strengthened its position and paved the way for its expansion in the fintech space. This crucial license enables Mercado Bitcoin to offer a range of fintech services that include digital fixed income investments, staking and various financial transactions based on crypto assets.
In addition to Mercado Bitcoin, other players that have the Brazilian payment license include Crypto.com and Bitso. Coinbase has expanded its Brazilian operations and promoted partnerships to facilitate local currency deposits and withdrawals.
Additionally, Brazil’s digital banking giant Nubank has been heavily involved in the cryptocurrency sphere in 2022. The company launched its services that allow customers to buy, sell and hold Bitcoin and Ethereum. Nubank promised to expand its offerings beyond Bitcoin and Ethereum.
