Coinbase prepares official launch in Brazil in 2023

Coinbase has hired 40 people for its operation in Brazil and it is with this team that it will prepare the next steps for its official launch in the country, scheduled for 2023. Fabio Plein, who last April was announced as director for the Brazilian market, told Blocknews that the local structure is part of the exchange’s strategy to reach 100 million new users in the next few years. “For that, it has to internationalize”. At the end of 2021, the company had 98 million verified users in over 100 countries.

Plein said his interest in cryptocurrencies came from the realization that they are “the technology that has the potential to transform people’s lives in the next decade.” And that he likes to work in sectors “that positively impact people’s lives”. The executive was general director of Uber Eats and PicPay vice president of PicPay Store. Coinbase hires here began with Marcello Azambuja, director of engineering, in November 2021.

Brazilians already use the services of Coinbase, which registered US$ 547 billion of transactions in the last quarter of 2021. The operation was expected to start later this year. According to Plein, in Brazil the company will follow the format of having employees working remotely. “Depending on the need, we will have bases, but as a principle of way of working, we believe in remote”. The executive is based in São Paulo. “We want to enter in a deep way, which requires local teams, close relationships with society and meeting the specific needs of the market”. The bill that will be the basis for regulating cryptocurrency exchanges cites that foreign exchanges must be headquartered in the country.

Brazilians already access exchange services

The Brazilian market has become one of the priorities for Coinbase. “We are going to bet on Brazil to enter Latin America. We want to make this a success story”, said Plein. According to the director, one of the attractions here is the fact that the population is large and young, with an average age of around 32 years. In addition, the population is used to adopting new financial technologies, he added. The country has become one of the biggest markets for crypto users in the world – there are studies pointing out that it is fifth in numbers of people. Therefore, the queue of companies that have arrived in recent times has grown rapidly.

The company did not lay off workers like others in the sector in different parts of the world, including Brazil and the United States. There, it froze vacancies, including those that had already been accepted by candidates. Here, for now, the pace of construction will be with the team that already has “to understand a little about the market”. The initial estimate is 130 positions. To make the hires, the exchange held two events where it gave candidates tips about Coinbase and how to do a good interview. “The technology market is very competitive in Brazil, but I have seen a lot of interest from people in cryptocurrencies. As an industry, it has generated interest,” she said.

At first, the company will offer what it already has available to Brazilians, “but we still have many products and we will organize to bring them. As the offer becomes more robust, we will understand Brazil’s needs. It is not a path that can be solved in the short term”, added the director. One of the challenges is to attract users to put their resources today in fiat currency, in cryptos.

Coinbase participates in regulation discussion in Brazil

The initial services will be access to buy and sell more than 170 crypto assets and pay with a credit card in Brazil. In addition, it will continue to offer staking, a kind of remunerated deposit if the crypto stays on the Proof of Stake (PoS) network, and its self-custody wallet.

From now on, Plein is also following the process of regulating cryptocurrencies and says he will participate in the debates. Last May, Coinbase founder and CEO Brian Armstrong met with Central Bank President Roberto Campos Neto. The bill is in the House for final evaluation, but there is still no date for a vote.

As he went through Uber and PicPay, Plein already comes from a sector that has undergone regulation – a process in which he participated – and from another that is already regulated. For him, the definition of a regulatory framework for cryptocurrencies and exchanges can define a leading role for Brazil in this area. “There are few countries with regulatory leadership with an advanced mind, promoting innovation and looking forward” as is the case in Brazil, he said.

Coinbase Ventures invests in Bitso and Hashdex

As the executive recalled, the PL has very broad definitions. “The bill will give some peace of mind (to the sector). But let’s get more clarity (of the rules) in the next steps. This is because the details of the rules will be made by the regulator chosen by the Executive, which can be, for example, the Central Bank and/or the Securities and Exchange Commission (CVM).

The CEO of Coinbase said a few months ago, at a closed event here in Brazil, that the ideal would be to enter the country buying a local operation. This year, there was an attempt to buy the Mercado Bitcoin, however, it failed. Plein declined to comment. What I said is that Coinbase believes in the quality of its product, technology and professionals. “We can make a case of success starting in Brazil while maintaining our vision and way of working”.

He also said that Coinbase Ventures is always looking for investment and acquisition opportunities. This is the investment arm that the exchange launched in 2018 to fund early-stage companies. In its portfolio are, for example, the Mexican exchange Bitso and Hashdex, of crypto funds. Plein stated that he has nothing planned about an integration with these platforms in Brazil.