Brazil’s B3 Exchange Gets Regulatory Clearance to Start Trading Bitcoin Futures in April

The securities authority in Brazil has given the green light to B3, a Brazilian exchange operator, to launch Bitcoin futures trading.

Reuters reports that the platform announced on Thursday that Bitcoin futures trading would begin on April 17. Crypto-related exchange-traded funds (ETFs) and ETF receipts are now available on B3.

The exchange is responding to the increasing demand for derivatives that provide protection from price swings or exposure to the direction of the popular cryptocurrency by adding Bitcoin futures to its trading platform.

Each contract reflecting 10% of Bitcoin’s price in Brazilian reais is sold by B3. The contracts are pegged to the Nasdaq Bitcoin Reference Price.

There will be no physical exchange of bitcoins for the purpose of settling these futures contracts; all transactions will be purely financial.

The introduction satisfies the need for a derivative that provides protection against bitcoin price swings or exposure to the asset’s direction, according to Felipe Goncalves, the supervisor of swap rates and currency products at B3.

He claimed that B3’s action marks a major milestone in the mainstreaming of cryptocurrency in Brazil’s conventional banking system.

Investors may take advantage of the price fluctuations of the digital asset by trading Bitcoin futures on B3, a licensed and secure platform.

The Brazilian government has recently prioritized blockchain and other new technology, as well as digital assets.

More than 214 million of the country’s residents will soon be able to apply for digital identity cards made possible by blockchain technology, the government said last year.

The inherent immutability and decentralization of blockchain technology led to its selection as a means of digital identification.

The president of Serpro, Alexandre Amorim, has said that blockchain technology is essential for the prevention of fraud and the protection of personal data.

He said that the b-Cadastros blockchain platform greatly improves the National Identity Card project’s security and dependability, providing Brazilian residents with a safer digital experience.

The digital identification project isn’t the only thing Brazil is working on; they’re also developing a CBDC, or central bank digital currency.

The government renamed the initiative Drex and released further facts about it in August. The CBDC’s goal is to increase companies’ access to funding by using Drex’s tokenization method.

In light of the increasing popularity of cryptocurrency in Brazil, the country’s central bank has lately pledged to crack down on regulations and increase its monitoring of crypto platforms.

The head of Brazil’s central bank, Roberto Campos Neto, made the announcement in October of last year that “cryptocurrency imports” by Brazilians had increased by 44.2% from January to August of 2023 compared to the same time in the previous year.

Neto said, “We recognize that a lot is tied to tax evasion or linked to criminal operations,” highlighting the need to enhance monitoring of Brazil’s cryptocurrency business moving ahead.

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