The Brazilian government is working to increase its crypto regulations established by the cryptocurrency law passed last year
Meanwhile, the new law might put the Brazilian securities regulator in the position to judge whether VDAs are securities or not
Gaps left in the recent crypto law.
The document, drafted by the Ministry of Finance, will delineate the areas of oversight and responsibilities for the Central Bank of Brazil and the national securities regulator (CVM). This decree will provide clarity and guidance to the cryptocurrency industry, unleashing its potential in the country.
The Brazilian government is working to increase its crypto regulations established by the cryptocurrency law passed last year. According to reports from local sources, the Ministry of Finance is drafting a decree to address the gaps left at that time in the law.
Now, this law will be reviewed by executive aides of President Luis Inacio before it is officially sanctioned.
Gabriel Galipolo, Executive Secretary of the Ministry of Finance, and Marcos Pinto, Secretary of Economic Reforms, would be working on this task. This decree will provide clarity on the specific tasks and areas of the market that each institution is responsible for.
The Central Bank of Brazil will be tasked with organizing and overseeing the activities of cryptocurrency exchanges in Brazil. It would have to put a particular emphasis on adhering to the regulations outlined in the law. Virtual asset service providers (VASPs) will be subject to the prevailing laws for banks.
Meanwhile, the new law might put the Brazilian securities regulator in the position to judge whether VDAs are securities or not. To this end, the organization has established a new division dedicated to this task, the Superintendence of Digital Assets.
This move is in line with the statements that Expedito Netto, the former rapporteur of the law, gave regarding the future of the law. This new step from the Brazilian government shows that they are ahead of the curve when it comes to crypto regulations. The issue of asset segregation will be a key point of discussion for the government as they draft this decree. It would be a sight to observe how the Brazilian government would deal with it.
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