Crypto regulation in Brazil is all set to be monitored by the Central Bank of Brazil, with the latest law being approved by the President.
The latest crypto bill passed in Brazil with the approval of President Luiz Inácio Lula da Silva has given further details on how crypto regulation will be implemented in the country. While the Central Bank of Brazil would be the regulatory authority over crypto firms and digital asset service providers, there is a different catch for token projects.
The translated decree signed by the President officially states, “For purposes of the provisions of art. 6 of Law No. 14,478, of 2022, the Central Bank of Brazil regulate the operation of virtual asset service providers and will be responsible for supervision of said providers”.
On the other hand, token projects in crypto that would be deemed as securities would be under the regulations of the Comissão de Valores Mobiliários (CVM). The CVM could be considered a Brazilian equivalent of the United States Securities and Exchange Commission.
The decree would be implemented with full effect from June 20 while the CVM prepares a regulatory framework that is beneficial for the crypto industry in the country. The development of the crypto bill in Brazil has emerged even as the country prepares for a CBDC pilot with some major partners.
With crypto regulation gaining pace under the Central Bank of Brazil, the country is expected to turn over a new leaf and soon become a hub of crypto-friendly activities.