“Brazil has advanced Bitcoin trading,” says Chainalysis executive

“Brazil has advanced Bitcoin trading,” says Chainalysis executive

For a Chainalysis executive, Bitcoin trading in Brazil is sophisticated compared to neighboring Latin American countries and highly concentrated on exchanges.

It is worth noting that Brazil’s volume is the largest in the entire region and is one of the 30 largest in the world. Thus, Brazilian Bitcoin trading ranks 12th in global volume.

Chainalysis is one of the largest cryptocurrency tracking solutions, partnering with businesses and governments. In addition, the company regularly publishes reports in the market, the most recent of which is the “2022 Crypto Crime Report”, with data released to the press this Thursday (10).

“Brazil Has Sophisticated Bitcoin Trading,” Executive Explains When Citing Low Volume Of P2P Negotiations

When cryptocurrency is stolen from an exchange or a government needs to track coins for crimes, it is common for companies to be hired to provide this service. One of the best known is Chainalysis, which has a branch in Brazil to help businesses and local authorities.

In addition to tracking cryptocurrencies, the company provides knowledge to the market, through reports and training. Several government agencies in the country have been and will be trained with the help of the company, a partnership with a major local Bitcoin brokerage.

This Thursday, the company’s executives, Magdiela Rivas and Brianna Kernan, spoke to the press in Brazil, detailing a recent investigation and how the company is handling the country’s market.

Without going into details of investigations, they shared information that their services, “contracted with a simple phone call”, are still being sought.

Regarding the latest market report, the 2022 Crypto Crime Report, they clarified doubts about Brazil’s situation with cryptocurrencies. In this context, Brianna Kernan, an executive in Brazil and Latin America, explained that she considers Bitcoin trading in the country to be advanced compared to its neighbors.

And to justify her opinion, she emphasized the low volume of P2P negotiations in relation to other countries. That is, Brazilians prefer to buy the currency through brokers, which will soon be subject to regulation, something the executive sees as positive for the local market.

“Brazil does not have such a strong peer-to-peer (P2P) market. And this is a sign that the Brazilian market is a bit more advanced than other countries in the region, such as Colombia, Venezuela, Argentina, which use cryptocurrencies to transfer money from the country, which is under the influence of inflation.”

Bitcoin P2P volume in Brazil not great
Bitcoin P2P volume in Brazil not great / Chainalysis

For example, in this regard, Brazil lost to Colombia, Argentina, Peru and Chile, taking the 5th volume in P2P Bitcoin trading in Latin America. When Satoshi Nakamoto created Bitcoin, he envisioned a decentralized system between people, something that does not seem to have occurred to Brazilians.

Brianna recalled that the Latino population does not use cryptocurrencies for speculation as in the rest of the world, but for money transfers, store of value, among other things.

Since brokers are the main gateway to the market, Brazil is one of the 12 largest in the world

What draws attention is that the volume of Bitcoin trading on centralized exchanges places Brazil with one of the 12 largest trades in the world, and currently the largest LATAM.

Brazil Leads the Cryptocurrency Market
Brazil is the LATAM Leader in the Cryptocurrency Market / Chainalysis

Regarding the problems of illegal use of cryptocurrencies in the world, Chainalysis executives stated that there are few cases as it is easier to track cryptocurrencies than fiat money. That is, many criminals avoid cryptocurrencies for fear of getting caught.

Yet most of the problems lie with scams, with most cases of illegal activity being recorded, followed by money laundering, ransomware and malware, which account for only 1% of crimes in Brazil.

Illegal services with cryptocurrencies in Brazil are small
Illegal cryptocurrencies services in Brazil are small / Chainalyse

Source: Live Coins