Brazilian President Lula Signs Decree Regulating Crypto and CBDCs

Brazilian President Luiz Inácio Lula da Silva has signed a decree clarifying the roles of the central bank and securities regulator regarding cryptocurrencies. The decree allows the central bank to regulate and supervise virtual asset service providers, while the country's securities regulator will oversee token projects qualifying as securities. The decree, effective from June 20, aims to create a regulatory framework better suited to the volume of crypto trades. This development coincides with Brazil's central bank planning a pilot project for a central bank digital currency (CBDC) in partnership with major payments firms like Visa and Mastercard.