Brazilian Firm XP Investimentos to Launch its Own Crypto Exchange
Brazil’s largest financial services firm XP Investimentos which manages over 35 billion dollars and more than 500,000 clients is planning to launch its own crypto exchange. The reports have come from the country’s Department of Federal Revenue which stated that XP Investmentos has already registered an exchange called XDEX INTERNEDICAO LTDA which a registration capital of about 7.3 million dollars.
According to reports from Brazil the new company was first registered as XP COIN INTERNEDICAO in 2017 when there was a massive surge for all cryptocurrencies. The company then changed its name earlier this year to XDEX after receiving 80% of its required capital of 7.3 million dollars. According to Portal da Bitcoin which is a local crypto news outlet in Brazil information from the Department of Federal Revenue have shown that the company is related to XP Investmentos. However, our efforts to reach the company’s website Xdex.com.br were not successful because the website is currently unavailable.
Even though much is not known about the exchange reports have indicated that the company focuses on over-the-counter trading. Other sources also indicate that the exchange will focus on large movements of capital and Bitcoin.
The exchange’s mother company XP Investmentos has been researching about cryptocurrencies since last year October when it registered the ‘XP Bitcoin’ brand. During that time media outlets were very interested in the activities of the company which stated that it was only studying about cryptocurrency markets. The same month the investment company hired top Brazilian cryptocurrency expert Fernando Ulrich.
The new developments by XP Investmentos are coming at a time when Cryptocurrency exchanges and businesses in Brazil have created rival crypto associations. The two rival groups have not yet come to an agreement on how cryptocurrencies should be regulated in Brazil. One group which is headed by Fernando Furlan has said that there is legal uncertainty and depending on the purpose cryptocurrency can either be a means of payment or even a financial asset.
The move by the investment giant seems to be well timed because it has come during a period when the country’s largest exchange Foxbix is experiencing a lot of problems. The exchange recently collapsed for more than 72 hours because some users had taken advantage of the exchange’s withdrawal method to duplicate withdrawals more than 130 times. The company has however recovered and is now trading and has even come back online.