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A regulation for the crypto market may soon be approved in Brazil. According to Thiago Cesar, CEO of Transfero, this legislation can benefit the sector as long as it is based on the freedom of the market’s free activity, without restrictions for companies with headquarters outside the country.

Although it has not been approved, the regulation of the crypto market is in the final voting stages in Brasilia (DF). After being voted among senators and federal deputies, Bill (PL) 4401/2021 returned to the House of Representatives and awaits its final report before the final vote on the legislative proposal.

But some details of the bill could change the supply of crypto assets in the Brazilian market. One of these proposals concerns the performance of international exchanges in the country.

For Thiago Cesar, making it more difficult for international exchanges to operate may increase the price of crypto assets, reducing the supply and quality of services. According to an interview with the CEO of Transfero to InfoMoney, the crypto market was born globalized and its operation has never been reduced to geographical limits.

“When we talk about crypto, it is a market that was created originally, as technology and principle, without geographical limits, without barriers or abstractions that, in practice, have no influence whatsoever on a digital asset that can be traded point-to-point, from one wallet to another. This is the great thing about crypto assets. Trying to regionalize or geographically restrict a book or a digital asset’s liquidity pool is almost a paradox”.

Crypto Market in Brazil

International exchanges such as FTX and Binance are among the largest crypto trading platforms in Brazil. Just as companies from other countries seek to establish in the Brazilian market, crypto businesses, such as Transfero, have consolidated abroad.

Created in Switzerland in 2017 by a group of Brazilians, Transfero understood that globalization was intrinsically linked to the crypto market. As a result, the platform that created the BRZ defends the principles of the industry.

“We are quite pragmatic. We are not against national exchanges and are even less blind or naive allies of international exchanges. But Transfero doesn’t support positions that aim to decrease the quality of crypto products and services offered to Brazilian users. When a global or a Brazilian exchange position goes against the principles of crypto, which are freedom, globalization, autonomy, and control over their finances, Transfero stands against it”.

Asset Segregation

In addition to hindering the activity of international exchanges in Brazil, some aspects of the crypto market regulation can fragment the sector. In an interview, Thiago Cesar advises that asset segregation is ideal but can affect market liquidity.

Therefore, Transfero’s CEO states that segregation should affect the global crypto assets supply, where there is an integrated order book that connects investors worldwide.

“There are some points that can be used to the detriment of the market, which is the case, for example, of the crypto asset segregation. We understand that exchanges should not do whatever they want with their client’s money. But when you try to approve a crypto asset segregation to isolate users’ liquidity in a controlled environment in Brazil, you kill the crypto’s global aspect.”