Nubank has announced its decision to cease operations with its cryptocurrency, Nucoin. This announcement comes just over a year after the launch of the Nucoin ecosystem, which debuted in late 2022.
Nucoin is a digital currency created by Nubank. It operates like a rewards program, allowing customers to earn Nucoins by using Nubank services, such as their credit card or app. Users can accumulate Nucoins to redeem for discounts, and special offers, or trade them like other digital currencies.
Nubank is a digital bank that enables you to manage your finances through a mobile app. You can open an account, obtain a credit card, and perform all your banking activities without visiting a physical branch.
Despite initial enthusiasm, Nucoin struggled to achieve sustainable growth. The uncertain regulatory environment surrounding cryptocurrencies in the region further complicates Nubank’s efforts to operate Nucoin effectively.
In Brazil, rules around cryptocurrencies have changed a lot in recent years. In December 2022, the Brazilian Congress passed a law to regulate the crypto market, creating a legal structure for digital money.
This law mandates that companies dealing with cryptocurrencies, known as virtual asset service providers (VASPs), must obtain licenses similar to traditional banks.
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Brazil’s Central Bank and Securities and Exchange Commission are tasked with ensuring compliance with these regulations. They are currently developing detailed guidelines for the use and trading of cryptocurrencies within the country.
The law aims to protect users and prevent fraud, while also establishing penalties for crimes involving digital assets. Brazil is still finalizing these rules, with the complete system expected to be in place by the end of 2024.
Nubank has assured its users that their Nucoin holdings will be converted to cash at the current market value. Users will have the option to withdraw their funds or use them for purchases within the Nubank app.
The official discontinuation of Nucoin is scheduled for December 9, 2024. After this date, the Nucoin blockchain will be shut down, and the token will no longer hold any value or utility.
