Brazilian Investment Firm XP Investimentos To Start Virtual Currency Exchange

Virtual Currency Exchange

XP Investimentos, an investment firm based in Brazil which manages more than $35 billion for clients numbering over half a million, has signaled that it will start a virtual currency exchange. Per Brazil?s Federal Revenue department, the financial services firm registered a firm known as XDEX INTERMEDIACAO LTDA. The cryptocurrency exchange has registered capital of approximately $7.3 million. The virtual coin exchange had initially been registered under the name XP COIN INTERMEDIACAO last year in August before it was changed to XDEX three months later.

Earlier in the year the digital currency exchange received around 80% of the registered capital. Though not much information has been provided regarding the virtual currency exchange the little that has been availed indicates that the firm will engage in over-the-counter trading.

Key hire

Last year in October the ?XP Bitcoin? name was registered and upon queries from local news outlets XP Investimentos stated that it was looking to the digital currency markets. A month later XP Investimentos recruited Fernando Ulrich, a virtual currency expert based in Brazil.

This comes in the wake of the largest digital coin exchange in Brazil, Foxbit, experiencing an outage which lasted more than 72 hours. The outage which occurred last month was reportedly caused by a software bug which saw users withdraw their balances of bitcoin twice. As a result Foxbit ending up losing 30 bitcoins worth hundreds of thousands of U.S. dollars.

Duplicate withdrawals

According to Foxbit?s chief executive officer of, Joao Canhada, and chief operations officer, Luis Augusto Schiavon, a total of 130 withdrawals were duplicated by some of the users who learned of the bug. Upon realizing what happened the virtual currency exchange moved to stop further withdrawals. The process unfortunately resulted in some of the service providers? data getting corrupted.

The company?s executives took pains to calm the fears of its users assuring them that the outage was not caused by an attack and that the lost coins would not affect the operations of the exchange since they were only a small number. Furthermore some of the users who had experienced duplicate withdrawals returned the excess coins.

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