Brazilian Central Bank Looking To Have Access To Crypto Exchange Data

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Brazilian Central Bank Looking To Have Access To Crypto Exchange Data

Posted on August 28th, 2018 in Around the World,Government Regulation by Trassos Vidalous

Cryptocurrencies Suffer New Intrusions Of The Establishment


It is known that the space of cryptocurrencies in Brazil is scene of much debate and uncertainty. Legislators and banks have much interest in the sector, such as Itaú, the largest private bank in the country.


Itaú was one of the first banks to close accounts of exchanges in the past, a fact that is being appreciated in the courts; this month, BACEN - Central Bank of Brazil authorized the acquisition of XP Investimentos by Itaú; and now XP Investimentos announced that it will open brokerage for Bitcoin in September, which makes the case of a clear strategic vision of the financial institution.
Brazils Central Bank has consistently introduced new specific regulations, having created Specialized Societies for Fintechs.


NEW REGULATION OF THE CENTRAL BANK


Previously, the Bank had created the Direct Credit Societies and Loan Society Between People (SEP) that let through the use of electronic platforms, marketing insurance and conducting credit analysis and collection services from third parties.


This time, seeking more security for consumers the Central Bank added to the establishment of rules to be followed by all payment institutions, the need for Cybersecurity Policy, an Action Plan and Response if there is a security incident, they require tocommunicate all data and attack vulnerabilities with competitors and government as well as an independent audit of relevant processing of data storage services and cloud computing.


This myriad of new costs and requirements loses sight that Brazil still crawls in the sector. Also, it is noted that although the fintech payment and loan firms are robust with an average of 350 employees, most begin with far fewer resources and personnel. According to an expert, although this is a good initiative such requirements will restrict operations in the sector.


ISSUES IN THE CRYPTOCURRENCY MARKET


Finally, note that there is a confusing item in Article 17, concerning the processing, cloud computing and data storage. This item requires many access permissions for the Central Bank of Brazil to the contracts and agreements, above all, to the stored data and the data backups, as well as access codes to the data.


The question is: Does the Central Bank of Brazil want access to your portfolio of cryptocurrencies on Exchanges?