The Brazilian government is ready to publish a decree to plug the gaps left by the recent approval of cryptocurrency regulations. The finance ministry will prepare a document to define the areas of oversight and the duties of the Brazilian National Securities Commission (CVM) and Central Bank.
Brazilian Government Challenges New Cryptocurrency Rules
Brazilian officials are trying to refine the cryptocurrency rules following the signing into law of a cryptocurrency regulation in December 2021 by outgoing President Jair Bolsonaro. According to local media reports, the finance ministry is working on a decree to fill in the loopholes left by the regulation’s final wording. To avoid any complications, the document will be reviewed by government advisers before being sanctioned by President Luis Inácio “Lula” Da Silva.
The document is being prepared by Gabriel Galipolo, Executive Secretary of the Finance Ministry, and by Secretary for Financial Reforms, Marcos Pinto. With the help of technicians from the Central Bank of Brazil and the National Securities Commission, the decree will divide the responsibility for cryptocurrency oversight between these two institutions, giving them clear areas and markets to monitor.
Impending Provisions
The new document will assign the Central Bank of Brazil the task of supervising and regulating cryptocurrency exchanges’ activities, making sure they comply with the regulations’ foundations. Virtual Asset Service Providers (VASPs) will be subject to laws similar to those currently applied to banks.
New definitions will make it possible to determine whether each tokenized asset qualifies as a security. The Commission will create a new department devoted to this task, the Superintendence for Digital Assets.
This step is consistent with the comments of Expedito Netto, the former regulation rapporteur, who discussed the future of the regulation and the amendments made by the federal government when Luis Inacio “Lula” Da Silva was President.
The federal government will probably try to tackle the issue of asset segregation by enacting this decree. When the bill was still under discussion, the problem was brought up. It means that exchange houses must separate their assets from those of their customers. However, due to disagreements, it was not included in the final bill.
What do you think the new decree is worth considering? Will the Brazilian authorities have difficulty changing the recently approved cryptocurrency regulation? Please leave a comment below.
photo credit: Shutterstock, Pixabay, Wiki Commons, Eduardo Rocha Paz / Shutterstock.com
Disclaimer: This article is intended for informational purposes only. It does not constitute a solicitation for a purchase or promotion, or a supply or supply direct. Bitcoin.com does not provide any funding, tax, legal, or accounting advice. Neither the company nor the author are responsible, directly or indirectly, for any damage, loss, or claim related to, directly or indirectly, to or in relation to the use or reliance upon any content or items mentioned in this article.
