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Brazilian exchange B3 receives regulatory approval to launch bitcoin futures in April

The decision could attract more institutional and retail investors to the country’s cryptocurrency market, offering them new investment opportunities.

Date: 2024-03-29 Author: Łukasz Michałek
Brazilian exchange B3 receives regulatory approval to launch bitcoin futures in April

Brazilian exchange operator B3 has received approval from the country’s securities regulator to introduce Bitcoin futures trading. The platform said on Thursday that Bitcoin futures trading is set to begin on April 17, according to a Reuters report.

B3 currently offers ETFs and ETF proceeds related to cryptocurrencies. With the addition of Bitcoin futures, the exchange aims to meet growing demand for derivatives that provide a hedge against price fluctuations or directional exposure to the popular cryptocurrency.

B3’s Bitcoin futures contracts will be linked to the Nasdaq

Bitcoin futures contracts offered by B3 will be linked to the Nasdaq bit coin reference price, with each contract representing 10% of the price of bitcoin in Brazilian real terms. It should be noted that these contracts will involve financial settlement, meaning there will be no actual buying or selling of physical bitcoin.

Felipe Goncalves, supervisor of swap rates and foreign exchange products at B3, said: “The launch satisfies the demand for a derivative that allows hedging against bitcoin price fluctuations or directional exposure to assets.”

He added that B3’s move marks a significant step in connecting cryptocurrencies to Brazil’s financial market. By offering bitcoin futures contracts, B3 provides investors with a stable and controlled platform to trade bitcoin, taking advantage of digital asset price movements.

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Brazil turns to digital assets

Brazil is moving toward digital assets and innovative technologies such as blockchain. Last year, the country announced that it plans to issue digital identification documents to more than 214 million citizens using blockchain technology.

The decision to use blockchain technology for digital identity stems from its inherent properties, such as immutability and decentralization. Alexandre Amorim, CEO of Serpro, said blockchain technology is crucial for protecting personal data and preventing fraud.

He claimed that the b-Cadastros blockchain platform greatly enhances the security and reliability of the national identity card project, offering Brazilian citizens a more secure digital experience.

In addition to the digital identity project, Brazil is also making progress in the development of a central bank digital currency (CBDC). In August, the government provided more details on the project, which has been renamed Drex.

CBDC aims to expand business access to capital through a tokenization system linked to Drex. Recently, Brazil’s central bank promised to tighten rules and strengthen its oversight of cryptocurrency platforms in light of the growing adoption of cryptocurrencies in the country.

Roberto Campos Neto, president of Brazil’s central bank, said last October that “cryptocurrency imports” by Brazilian residents increased by 44.2% between January and August 2023 compared to the same period last year.

“We understand that a lot is linked to tax evasion or illegal activities,” Neto said, stressing that oversight of the cryptocurrency sector in Brazil will be strengthened in the future.

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Łukasz Michałek
Łukasz Michałek
Founder of the rapidly developing cryptocurrency channel "Biblia Kryptowalut" on YouTube. He also co-creates the Arena Trading group with Marek. Łukasz is fascinated and passionate about blockchain technology and cryptocurrencies, which constitute the central element of his activity in the cryptocurrency industry.
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