Are you considering starting a business within the Bitcoin or Cryptocurrency market? Although it is a promising branch, it is still quite new, so it faces some challenges in legal matters. The Bitcoin market, as well as other cryptocurrencies, has no specific regulation before the Brazilian regulatory agencies. This makes the subject controversial and makes new companies and startups in the industry face resistance from many investors and enthusiasts of this type of investment. The daily news options are there now.
With this, when the entrepreneur thinks about starting his Startup in this segment, he has a lot of doubts about how to establish himself in this market. Many have no idea what care to take. Others, on the other hand, simply believe that because it is not yet regulated, they have the freedom to pursue activities related to the sector as they see fit.
The idea of this article is to provide some tips for the entrepreneur of this segment to reflect in order to act in accordance with good market practices, earn the respect of the public agencies that have radar linked in this sector and still earn the trust of their customers.
Pay attention to the regulation
Make sure that the activities to be developed by your Startup focused on the Bitcoin and Cryptocurrency market are subject to some kind of regulation. Companies that operate with virtual currency market products and services need to verify if the nature of their activity is subject to regulation by different agencies.
Even if it is a market not yet regulated, and in theory, not subject to interference from Brazilian agencies, there may be cases that, due to the nature of the activity, need to comply with regulatory rules corresponding to products and services subject to regulation.
Check what are the policies and conduct to be adopted
In order to mitigate operational risks and conduct your startup activities responsibly, it is recommended that you check with regulators what rules your company would be subject to if it were to operate with equivalent products and services in the regulated market. From the knowledge of these rules, it is important to highlight those related to the risk mitigation policy, conflict of interest, fences and conduct that are intrinsic to the activities to be performed. Then apply the rules you deem most relevant to your business by analogy.
Thus, your company will be in compliance with the policies already adopted by regulators for similar activities, such as the creation of internal policies, code of ethics, reporting channel, and conflict mitigation policy, among others. This way, you will be able to answer and prove the conduct of your company, if eventually questioned, and have more credibility in the market.
Adopt a posture of transparency
Make your Startup information clear on the site, principals and membership history. This can bring support, respect and credibility to its clients and to regulatory agencies. In general, customers and institutions often come across companies in the industry that make this information obscure, which gives the policyholder more insecurity.
Join industry: relevant associations
In this Bitcoin and Cryptocurrency market, most startups must fit the Fintechs model, companies that use technology-intensive to deliver financial products. Therefore, it is recommended that the startup seeking to join the Association of Finthecs.