Brazil’s largest bank Itau launches Bitcoin and other virtual currency trading services
First, we offer trading of BTC and ETH
On the 4th, Brazil’s largest bank, Itau Unibanco, launched a crypto asset (virtual currency) trading service on its investment platform. Reuters reported.
Guto Antunes, the bank’s head of digital assets, said it will initially enable trading in the most popular cryptocurrencies, Bitcoin (BTC) and Ethereum (ETH). He also hopes to add other cryptocurrencies in the future.
He continued that the expansion of listed stocks will also depend on how Brazil’s domestic virtual currency regulations are developed. Itau also operates as a custodian that protects user assets.
At the initial stage, external parties will not be able to deposit cryptocurrencies into Itau accounts or withdraw money from Itau accounts to customers’ personal wallets.
Itau Unibanco is a major financial company that was created in 2008 through the merger of Itau and Unibanco. Total assets are equivalent to approximately 65 trillion yen as of December 2022.
According to Statista, the number of virtual currency users in Brazil is currently estimated to be around 37.72 million. It is also predicted that the number of users could increase to 54.46 million by 2027.
Brazil is also known for offering many cryptocurrency-related ETFs, and recently DeFi (decentralized finance) and Web3-related ETFs have also been listed.
connection: Web3.0 themed ETF to be listed in Brazil
What is Bitcoin ETF?
An Exchange Traded Fund that includes Bitcoin as an investment. An investment trust is a financial product that collects money from investors into a single fund and invests it in stocks, bonds, etc. The system is such that the investment results are distributed according to each investor’s investment amount. Among investment trusts, ETFs are listed on stock exchanges, so they can be bought and sold like stocks.
Virtual currency glossary
connection:What is the exchange-traded fund “Bitcoin ETF� | Why BlackRock’s application is attracting attention
Brazilian virtual currency regulations
In Brazil, the development of virtual currency regulations is progressing.
In December 2022, a bill was passed that legally allows the use of virtual currency as a payment method. It will allow virtual currencies such as Bitcoin as a payment method and investment asset, and require virtual currency companies to obtain licenses and protect their customers.
connection: Brazil passes a law allowing virtual currency payments
Also, in November, Brazil’s Senate approved a bill that would impose a 15% tax on profits generated from cryptocurrencies held on exchanges outside Brazil.
If approved by President Lula, it could come into effect as early as January 1, 2024.
The bill would ensure that virtual currencies are taxed in the same way as other foreign investment assets. In Brazil, income that Brazilians receive overseas is exempt from tax up to approximately 180,000 yen, but 15% tax is deducted from approximately 180,000 yen to approximately 1.5 million yen, and 22.5% tax is deducted above that. .
It has also been pointed out that increasing taxes on overseas exchanges’ profits could be advantageous for Brazilian exchanges.
connection: “Cryptocurrency transactions will be subject to separate self-assessment taxation†Shinkeiren, led by Rakuten and Mikitani, proposes a tax reform plan to the government
The post Brazil’s largest bank Itau launches Bitcoin and other virtual currency trading services appeared first on Our Bitcoin News.
