SÃO PAULO — The crypto ethos is clashing with institutional reality.
During a panel at the Blockchain Conference Brasil in São Paulo, while major industry players discussed compliance and regulation, the crowd went into uproar in defense of privacy and in rejection of centralized oversight. That uproar arose from the words of Vinícuis Brito, an executive at a Brazil-based firm focused on crypto self-custody.
“I’ve recently read in a book a saying that stuck with me. ‘Privacy is the immune system of freedom’,” said Brito. “When they come after your privacy, they’re one step away from your freedom.” His comments came in response to a discussion on the potential use of technological innovations for illicit purposes.
Brito argued that compliance frameworks sold as safeguards against terrorism and human trafficking are instead pretexts for increasing state power.
“At first, they just say it’s about terrorism or trafficking. And of course, everyone agrees with stopping those crimes — I support that too,” he said. “But we know these rules will be used later to go after political enemies. That’s not the purpose.”
Brito warned that Brazil is on track to become a “fiscal hell” by 2027, and said peer-to-peer (P2P) technologies remain the last line of defense. “You can’t stop P2P,” he said. “No one can stop me from exchanging cash for sats [referring to bitcoin’s smallest unit, the satoshi].”
Guilherme Prado, head of Bitget in Brazil, acknowledged while speaking on the same panel that rising Know Your Customer (KYC) requirements and transaction reporting are prompting users to turn to decentralized exchanges (DEXs).
“The DEX market is growing exponentially, precisely because of regulation,” he said, citing the rise of platforms like Hyperliquid and a post-FTX shift toward self-custody.
During the discussion, Juliana Felippe, General Manager at Tools for Humanity, defended biometric verification as a privacy-preserving way to prevent fraud and bot manipulation. But among the audience, the strongest emotional response came from Brito’s warning that surveillance is not a byproduct, but a goal.
“Suddenly, everyone became a suspect and will have to share sensitive data that will expose their privacy over an argument that, in my view, is simply a state argument. That’s not what they want,” Brito added. “They want to end privacy, to, in the future, attack their political enemies or anyone who disagrees with them.”
That message resonated with the crowd, which erupted into cheers.
“The problem with crime isn’t the money used, it’s the criminal,” he said. “Energy should go into arresting people who commit violence, not treating everyone like a suspect. This isn’t about safety. It’s about control.”