Security of the cryptocurrency infrastructure in Brazil

As a result of the failure of FTX, Brazilian politicians are requesting that the government conduct inquiry into the cryptocurrency network. According to an article that was published by Reuters on the 17th of November of this year, proponents of cryptocurrencies in Brazil are reportedly pleading with the government to pass a bill that would increase sector monitoring in the wake of the collapse of FTX.

The failure of the previous Bitcoin network has given rise to fresh concerns around unrestricted access to electronic assets.

R. Dagnoni, a senior administrator at the trading firm Mercado, which is financed by SoftBank, was one of the bitcoin enthusiasts who backed Brazil's plan. He was one of several. If there is any silver lining to be found in the FTX debacle, it is the fact that compliance with legal requirements is now given higher emphasis.

According to Dagnoni, a smaller number of market players just follow the real crypto rules; nonetheless, this has to alter as soon as possible. Because of the free reign that certain gamers have, it is necessary to impose certain restrictions on their behavior. The game would be played quite differently as a result of this law.

The calls for increased regulation are getting stronger.

It is possible that the measure, which has already been approved by the Senate and is waiting for action by the lower chamber, may mandate that innovative bitcoin enterprises have a physical location for their operations. In addition, there should be a rule that requires all firms dealing in cryptocurrencies to report any concerns they may have regarding fraudulent or malicious behavior. In the event of a breach of the law, there are specific consequences that can be imposed, such as monetary fines and perhaps prison time.

It's possible that passing the bill will take less time than first estimated. In a report that was published by Folha de S. Paulo last week, Lower House Speaker Arthur Lira was cited as saying that the government was prepared to ballot on the bill before the 2022 ended. Even the most prominent cryptocurrency exchange in the region, Mercado Bitcoin, has no exposure to the FTX market. Despite this, the corporation does not have a significant presence in Latin American countries.

This is the motivation behind why electronic possessions developed its own techniques of storing client assets to keep them safe. Dagnoni remarked that his trading platform has witnessed increased levels of customer interest despite the large bulk withdrawals that had taken place.