Brazilian Central Bank received CZ from Binance What are the plans for bitcoin?

The president of the Central Bank of Brazil, Roberto Campos Neto, met with the CEO of Binance, Changpeng Zhao (CZ), last Friday, May 13. The appointment, held by videoconference, was given as part of the plans that the bitcoin (BTC) exchange and other cryptocurrencies have to strengthen their presence in the giant South American country, and therefore in the region.

The mission of the cryptocurrency company is to set up an office in Brazil, where its platform registers the largest volume of bitcoin operations in the region, as reported by local media.

The meeting between CZ and the president of the Central Bank of Brazil can be interpreted as a sign that both are making preparations for the Law., which is one step away from being approved, after the approval by the full Senate.

The focus of this meeting would be on Bitcoin Law

As Criptonews reported at the end of April, the proposed law to regulate the cryptocurrency sector in Brazil indicates that it will be the Executive Branch that chooses the regulatory body of the industry. It means that the Central Bank can be designated as the body responsible for supervising the exchanges of cryptocurrencies and other digital asset service providers.

However, the Central Bank has been working in advance on the development of guidelines for the supervision of financial transactions with cryptocurrencies in Brazil.

A new order would have been addressed to all financial institutions by the highest monetary authority. As reported by the media, it seeks to frame bitcoin and other cryptocurrencies, as “investment vehicles”.

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Therefore, crypto-asset exchanges would have to follow the rules of other investment funds regulated by the Brazilian Securities and Exchange Commission (CVM). With it, all would be required to have a physical headquarters in the country in order to operate, in addition to maintaining records and documents that support the digital transactions they handle.

Good and bad services with bitcoin in Brazil, which side is Binance on?

Brazilian lawyer Fabio Braga believes that the Central Bank seeks to identify and segregate suppliers of products and services, of good and poor technical and operational quality, with greater transparency and accountability.

The measure would have arisen from recent cases in which Binance was involved, when it was sued by Banco Santander for maliciously obstructing the investigation of a diversion of around 30 million Brazilian reais from a bank account of the Gerdau steel company.

According to the lawsuit, seen by the Folha media, Binance argued “technical inability” to file a report that it contained the identification of those responsible for the bitcoin wallets involved in the alleged money theft that happened in April 2020.

Santander subsequently appealed and, seven months later, Binance lost. And, although the exchange had declared that it technically could not provide the data, it presented the information in less than two hours after the court decision, as reported by the aforementioned media outlet.

Binance opens its wings to fly over Latin America

As Crypto News had already confirmed in 2020, Binance has long had expansion plans in Latin America, a territory that he sees as an opportunity for growth because its population has been fighting an intense battle against inflation.

In fact, this year CZ went on a tour of Latin America, visiting countries such as Brazil, Mexico, Colombia, Uruguay, Argentina and El Salvador, as the note on Twitter.

In March he met with the President of El Salvador Nayib Bukele, and also shook hands with Eduardo Páes, the mayor of the Brazilian city of Rio de Janeiro, which will accept bitcoin for tax payments and where Binance will set up a physical office.

In Uruguay apparently there were no agreements that will boost the adoption of bitcoin, but still CZ have a light meeting with the president of the country Luis Lacalle Pou.

With all these meetings it seems that CZ is making preparations for the future, because as he said in Spain in April, it is true that bitcoin has not yet “replaced traditional money, but I think that when teenagers who are 15 today have turned 35, cryptocurrencies will be everywhere. People will use them to pay for coffee or in supermarkets.”