• XDEX has a built-in transfer system connected to Brazilian banks to ensure speed and reliability in transferring money and cryptocurrency.
• Brazilian investment funds allowed to invest in cryptocurrency through acquisition derivatives and foreign funds.
• Cryptocurrency exchanges in the country under scrutiny.

XP investimentos, Brazil’s largest investment firm has launched XDEX, a website that deals in cryptocurrency. It is already up and is currently accepting pre-registrations. Portal do bitcoin was the first news outlet to spot the website whose primary objective is to advertise commission-free bitcoin trading to its users, although notable is the fact that the platform will charge fees when they’re trading other cryptocurrencies like Ethereum.

XP investimentos offers a built-in transfer recognition system connected to its banks, which ensures speed and reliability when transferring real money to buy cryptocurrencies. While it isn’t as yet clear when the exchange will open for business, its page states that users will have to open an account when it does.

Banks uncooperative

Of clear interest is the fact that earlier this year Brazil’s antitrust watchdog the Administrative Council for Economic Defense (CADE) launched an enquiry into whether the country’s banks were intentionally curtailing crypto exchanges by putting restrictions on their operations.

Portal do bitcoin denotes that users won’t be able to send bitcoins to or from their personal wallets. The page reads:

“Deposits, redemptions and / or transfers of digital assets / cryptocurrencies from and to a virtual wallet (E-wallet) through the XDEX platform are not permitted. The deposits / redemptions and / or transfers will be made only in reais, and the sale of the digital asset will be mandatory for the redemption in reais.”

XP Investimentos was launching its cryptocurrency exchange earlier this year, as available data showed it registered a company called XDEX INTERMEDIACAO LTDA, whose registered capital was $7.3 million according to CCN.

Brazilian investment funds allowed to indirectly deal in cryptocurrency

Investment funds in Brazil have recently been given the green light to deal in cryptocurrency through the acquisition of derivatives and foreign funds as per the superintendent of institutional investor relations at the country’s Securities and Exchange Commission, the CVM.

Cryptocurrency exchanges in the country have, however, come under serious scrutiny. The government recently sent exchanges a 14-point questionnaires in a bid to learn more about their businesses and their potential use to clean dirty money, and earlier this month CADE sent out to them another questionnaire they have to answer or face a fine that could amount to up-to $25,000.