Brazil’s Largest Independent Broker Planning To Enter The Crypto Marketbr>
Grupo XP, the owner of XP Investimentos, Brazil’s largest independent broker, is planning to set up a cryptocurrency exchange platform by the end of the year.
Guilherme Benchimol, the chief executive officer of Grupo XP and XP Investimentos SA, said that the company will launch a trading platform called XDEX in the coming months that will initially support trading in bitcoin and ethereum. Benchimol said the company decided to enter the crypto space because around 3 million Brazilians have exposure to bitcoin, compared to only around 600,000 that invest in stocks.
While Benchimol isn’t excited about the company’s crypto venture, he said they are required to meet the demands and needs of their customers.
“I must confess, this is a theme I’d rather didn’t exist, but it does,” said Benchimol. “We felt obligated to start advancing in this market.”
The announcement came after Brazil’s Administrative Council for Economic Defense (CADE) launched a formal investigation into six major national banks regarding alleged monopolistic practices in the crypto space. The antitrust regulator said it received numerous complaints that “the main banks are imposing restrictions or even prohibiting … access to the financial system by cryptocurrency brokerages.”