Authorities in Brazil to scrutinize operations of the Local Crypto Trades
Brazil’s local digital currency exchanging platforms have been handed a 14-question study to answer about the specific areas of their activities.
Portal do Bitcoin, a national news channel aired the clampdown in a special episode after getting a documentation that was served to the crypto trades, in spite of the caution by the prosecutor Ana Paula that distribution of the documentation is denied by law.
The study entails questions that covers various points that will contribute add to the investigation of battling fraud and illegal currency-related activities and tax avoidance in Brazil. The question also spreads to subjects such as how compliant are the crypto trades, limitation incurred by clients in returns earned, control over the quantity of operations, verification of the inventor's proof of identity and information of the partnerships if any.
Query No.10, for instance, asks: "Does the Crypto exchanges trade famous crypto-coins because of their anonymous feature, for example, Monero, Dash and Zcash?" This kind of questioning concerning these coins is specifically to track the owners. Different queries were more straightforward, for example, No.6 asks " What actions, assuming any, does Crypto-Trade take to alleviate illegal cryptocurrency activities and terrorism funding?"
The Finance Ministry issued the questionnaire as a secretive documentation "to ensure the trustworthiness of the monetary framework". Every operator of a crypto exchange in the country had five days to react, with the information guaranteed to be kept totally secret.
What do the crypto trades say?
Portal do Bitcoin reached out to three of the best performing crypto trades in the nation. Each gave an alternate reactions to how they are taking care the clampdown by the government and each did not to comment in public. One exchange platform has fully responded to the questionnaire and officially sent it back to the Ministry of Finance. While others say they are yet to receive the questionnaires.
A specific crypto-exchange stated they don't have any plans to react to the questionnaire, since it was sent as an inquiry form instead of as an official documentation from the administration of Brazil. While majority of these companies will reply most of its received correspondence with automated messages, it will be difficult for that particular exchange to guarantee they never got the questionnaire when the administration steps up the crackdown.