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Huobi Aims to Enter the Brazilian Cryptocurrency Market

The Brazilian cryptocurrency market will witness ripples as Huobi, the world’s third largest crypto exchange by volume is planning a grand entry here. Local reports indicate that the exchange has already established an office in Sao Paulo and has started hiring local talent as well.

Reports suggest that the craze for digital currencies has never been higher in the country and the exchange is looking forward to cash in to this trend as soon as possible. However, the exchange is working discreetly and avoiding any noise before their formal entrance. The rumors about the company finally coming to Brazil were fanned during the recent event “Bitconf VI Sao Paulo” conference, where the representatives from the company were seen handing out business cards.

A few major figures in the Brazilian crypto market are also reportedly in touch with these representatives. The company has also established an office in a prominent municipality of Sao Paulo, which serves as the financial hub of the country. This clearly indicates that the company is looking for a prominent presence in the country’s space. Some advertisements for seeking suitable candidates to fill up jobs in the company’s Sao Paulo office were also spotted on LinkedIn. As of now, they are looking for two new staff- A Digital Marketing Manager and a Chief Compliance Officer.

This event could trigger a significant positive change in the virtual currency sector of Brazil. As a big player like Huobi comes to the market, firms currently working in the nation will also be motivated to up the stake in the game. More competition will also lead to better opportunities for new or casual investors who will be bringing some more money to this industry. However, the most important investment profile will come in the form of institutional traders who will bring in the biggest volume of trades. They are more likely to open up to a large platform like this for better security of their funds and more liquidity, coupled with an exposure to the international market via the local exchange.

Cryptocompare shared stats about the importance of this move. The total combined 24-hour volumes of the leading Brazilian exchange amounts to $840,000 USD. This is barely 0.68{27c26ef558c28c964c96a6821835eda56a0f914c6657a8b819ac8be921972988} of the $122.5 million USD daily trading volume on Huobi. It is estimated that Brazilians have invested more than $2.4 billion worth of their assets into virtual currencies in 2017 which is a 1,400{27c26ef558c28c964c96a6821835eda56a0f914c6657a8b819ac8be921972988} increase as compared to $160 million invested in 2016.

Brazilian exchange Foxbit’s head of international business development in London, Eduardo Ferreira, said, “The guys who used to hide dollars under their mattresses, now they are hiding it in Bitcoin.” He also noted that people from all walks of life are now adopting digital currencies. He added, “It’s students buying it. Its 60-year-old bus drivers,” signifying the widespread interest in these currencies. As the market here is growing larger by the day and big international businesses are showing interest, it is highly likely that that the South American nation could appear as a significant crypto destination in the future.

About the author

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Amit Iyer

Amit Iyer being inspired by Raj is also a college dropout. He possesses the skill of quick grasping which has been a great asset to TheFinanceDesk. A true Digital Marketing Prodigy and financial investor. He specializes in SEO and is also working on many freelance projects. At the age of 18, he is the youngest contributor at TheFinanceDesk.

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