Some of Brazil’s biggest crypto exchanges have agreed to create and abide by a new self-regulatory code of conduct, and have collectively vowed to impose know-your-customer (KYC) and other compliance-related protocols.
Per media outlet Criptonoticias, the initiative was launched by the Brazilian Association of Crypto-economics (known locally as ABCripto) late last week. The body has imposed what it called a “code of self-regulation for the Brazilian digital asset sector.”
Trading platforms BitPreço, Foxbit, Mercado Bitcoin, NovaDax and Ripio were among the signatories. Together these platforms account for over 80% of the total volume of crypto transactions conducted in Brazil.
Although four crypto-specific bills have been put before parliament, Brazil is still yet to move close to adopting any formal system of regulation for its fast-growing crypto sector. ABCripto spoke of the need to plug a “regulatory vacuum” with self-regulatory protocols and policies that it hopes will help legitimize the industry.
The group spoke of the need to impose rules “without hindering” its members’ growth plans, helping “promote crypto asset trading,” but also helping to “demystify” crypto for the uninitiated and assisting in the fight against crypto scams and fraud.
In addition to KYC policies, members will also need to boost security, strengthen legal compliance, safeguard user data and make commitments to respecting free competition within the sector.
Members who fail to comply with the new code, said the organization, could be issued with warnings, fines, or even expulsion in extreme cases.