Brazil is taking active measures to ensure that crypto-related crimes in the nation are tackled with dedicated precision. The public prosecution office of Brazil’s central-western Federal District is behind the launch of this cryptocurrency investigation unit. The newly formed wing will also contribute in driving education and awareness around the crypto sector in the nation. The development comes at a time when the virtual digital assets (VDA) industry is undergoing expansion in the Latin American country.
The name of this new investigation unit is ‘Crypto’. The division will be roping in members of the public ministry, judiciary, and the police to impart education on digital assets.
“The best training for an agent dealing with digital assets is to interact with the market. Without practice, we can offer the best tools that, in the end, the agent will not know what to do with. That is why we always focus on the interaction of agents with the ecosystem, starting with exchanges and peer-to-peer sellers,” Frederico Meinberg, the coordinator of the unit said in a recent interview.
By August 2021, the Brazilian Federal Police had carried out more than 30 search and seizure warrants to curb money laundering via cryptocurrency.
As per Meinberg, the process to crack and investigate crypto crimes is more complex than traditional ones.
Not only are cryptocurrency transactions largely untraceable, the sector is also not bound entirely within the laws and regulations of any country.
The government of Brazil is looking to safeguard the crypto investors against financial risks.
This newly formed ‘Crypto’ unit will be training its members in blockchain technologies so that they are equipped to tackle any harmful situation and mitigate associated risks.
As per blockchain research firm Triple-A, around 10 million Brazilians held cryptocurrencies in 2021.
In May, Nubank, Brazil’s largest digital bank by market value, began offering Bitcoin and Ether to be bought or sold on its platform. Nubank’s decision was fuelled by the rising number of crypto investors there.
As part of its crypto laws, Brazil is laying major focus on establishing relevant fines and punishments for those who misuse cryptocurrencies for unlawful activities like money laundering, fraud, and other white-collar crimes.