São Paulo/Brasilia, May 21, 2018. Brazilian legislators are looking into creating new laws to regulate virtual currency, cryptocurrency and other virtual assets. Past Wednesday, 18 of May of 2018, the Deputies Chamber invited PrimeiroPay to speak about their business and get valuable input on possible enhancements on the current bill.
In an ever-changing regulatory environment, where the Central Bank and other authorities have been enacting new regulation and directives that strongly impact the payment industry – specially new fintechs – this discussion receives a high level of attention within the Brazilian congress.
Gabriela Vieira, PrimeiroPay’s Legal Director, shared her extensive knowledge about the fintech industry with an audience of about 25 congressmen, making it very clear that well-draft regulations may benefit the industry as a whole, bring legal certainty as well as allowing space for innovation and competition: “it is important to seek a regulatory framework that has precise rules and is aware of the market needs, creating a business-friendly environment that fosters innovation and sustainability for the long run. We need to address the systemic risks that virtual currency may bring without banning or penalizing the development of new financial technologies. PrimeiroPay has been working very closely banks and local authorities, sharing its experiences and challenges in order to find transparent solutions. We believe the open communication between public and private sector is the key, and we do not believe in growing and increasing our profits by operating in a grey zone.”
The three-hour hearing that was transmitted live on the internet addressed a number of topics aside the virtual currency, including verticals such as gambling that is strictly prohibited in Brazil. “PrimeiroPay has never and will never facilitate payments for illegal or unlawful activities. We are committed to conduct thorough KYC processes to identify our merchants and their business making sure it complies with the current local laws”, states Tim Werner, Managing Director at PrimeiroPay.
Brazil have been enacting new regulations throughout the last years that have been affecting an already highly regulated payment market, including specifics figures such as marketplaces, cryptocurrencies, cross border models, and others. PrimeiroPay has been a pioneer in Brazil and has developed unique solutions to ensure a seamless experience for merchants that wish to sell their products in Brazil, via a local acquiring, without having a local entity. It was the first company to introduce a guaranteed Foreign Exchange Rate allowing cross-border operations without any FX risk due to market movements. “The complexity to automate these processes are enormous. All transactions are screened against more than 12 sanctions list in real-time. Our responsibility is to ensure our merchants can operate 100% aligned with local laws in Brazil and offer, at the same time, a great customer experience to their client. This requires us to implement structures to facilitate the entire process from the merchant on-boarding over when a consumer types in their card details on the checkout page. We are happy that our efforts are being acknowledged by local authorities.”, adds Gabriela Vieira.