Brazilian Stock Exchange B3 Gets Regulatory Green Light to Offer Bitcoin Futures

On Thursday, March 28, Brazil’s popular stock exchange B3 announced that the country’s securities regulator has given them the go-ahead to offer Bitcoin futures to their clients. As per the reports, the trading for the same will begin next from April 17.

More Details Regarding the Bitcoin Futures Contracts

Brazilian crypto exchange B3, currently providing exchange-traded funds (ETFs) and ETF-related receipts for cryptoassets, indicated that the official launch date might still be subject to change. The exchange also added that the BTC futures contract will have a financial settlement without the need to buy and sell actual Bitcoins.

In an official statement, the company highlighted that the Bitcoin futures will be linked to the Nasdaq Bitcoin Reference Price, with each contract representing 10% of Bitcoin’s price in Brazilian reais. Speaking on the development to Reuters, B3’s superintendent of swap rates and currency products, Felipe Goncalves, said:

“The launch meets the demand for a derivative that allows a hedge against bitcoin’s price fluctuations or a directional exposure to the asset”.

Brazil and Its Crypto Adoption

The Latin American country Brazil has been steadfast in making moves in the crypto space. Citing strong adoption in the country, the regulators have also been taking measures to build a conducive environment while ensuring the safety of investors.

Amid strong demand for Bitcoin in Brazil, BlackRock also decided to launch its Bitcoin ETF IBIT in the Brazilian market last month. BlackRock intends to accomplish this in partnership with B3, the stock exchange operator in the country. Notably, this would mark the asset manager’s inaugural crypto ETF in the South American nation.

However, starting this year 2024, Brazil will also be taxing investors for their overseas crypto holdings. The legislation dictates that profits derived from cryptocurrencies held abroad will incur a tax rate of up to 15%. Moreover, the law includes a threshold, exempting overseas earnings below $1,200 from this taxation.

In a notable move within Brazil’s financial realm, Itau Unibanco, the nation’s largest banking institution, has strategically ventured into the cryptocurrency market. The bank has introduced a cryptocurrency trading service tailored for its investment platform clientele.