For Chainalysis executives, bitcoin trading in Brazil is very complex and highly centralized on exchanges compared to neighboring Latin American countries.

It is worth noting that Brazil has the largest transaction volume in the entire region and is one of the 30 largest countries in the world. As a result, Brazil ranks 12th in the world in terms of bitcoin trading volume.

Chainalysis is one of the largest cryptocurrency tracking solutions, working with companies and governments. In addition, the company regularly releases reports to the market, most recently the "Cryptocurrency Crime Report 2022", the data of which was revealed to the media on Thursday (10).

"Brazil has complex bitcoin transactions," the executive explained in reference to the low volume of P2P negotiations

It is common for companies offering such services to be hired when certain cryptocurrencies are stolen from exchanges or when governments need to track coins for criminal purposes. One of the most famous is Chainalysis, which has a division in Brazil to help companies and local authorities.

In addition to tracking cryptocurrencies, the company also provides knowledge to the market through reporting and training. Several public institutions in the country have been and will be trained with the help of the company, which has partnered with a large local bitcoin brokerage firm.

On Thursday, company executives Magdiela Rivas and Brianna Kernan spoke to the media in Brazil, detailing a recent study and how the company is addressing the country's market.

Without elaborating on the survey, they shared the information that their services are still being sought "through a simple phone call to sign up".

Regarding the latest market report "Cryptocurrency Crime Report 2022", they clarified their doubts about the cryptocurrency situation in Brazil. In this context, Brianna Kernan, an executive in Brazil and Latin America, explained that she believes that bitcoin transactions in the country are more complex compared to neighboring countries.

To prove her point, she highlighted the low number of P2P negotiations related to other countries. In other words, Brazilians prefer to buy currency at brokers, which will soon be regulated, which executives believe is beneficial for the local market.

“Brazil does not have such a strong peer-to-peer (P2P) market. This suggests that the Brazilian market is a bit more complex than other countries in the region, such as Colombia, Venezuela, and Argentina, which use cryptocurrencies to transfer funds from the country, which are suffering from inflation.”

Brazil's Bitcoin P2P trading volume is modest /Chainalysis

In this regard, Brazil, for example, lost out to Colombia, Argentina, Peru and Chile, ranking fifth in Latin America in terms of P2P bitcoin trading volume. When Satoshi Nakamoto created Bitcoin, he envisioned a person-to-person decentralized system, which does not seem to have caught on among Brazilians.

Brianna recalls that the Latino population does not use cryptocurrencies for speculation like the rest of the world, but for remittances, stores of value, etc.

As brokers are the main gateway to the market, Brazil is one of the 12 largest countries in the world

Notably, the volume of bitcoin traded on centralized exchanges makes Brazil one of the top 12 exchanges in the world and by far the largest in Latin America.

Brazil is the leader in the Latin American cryptocurrency market / Chainalysis

On the issue of illegal use of cryptocurrencies worldwide, Chainalysis executives say it is rare because it is easier to track cryptocurrencies than legal tender. That said, many criminals avoid using cryptocurrencies out of fear of getting caught.

Even so, most of the problems exist in fraud, with the largest number of cases of illegal activity, followed by money laundering, ransomware and malware, which account for only 1% of crimes in Brazil.

Brazil's illegal cryptocurrency services are small / Chainalysis