Key Highlights:
- Duties for trading digital assets are outlined in a new law.
- Brazilian Central Bank will be under government supervision.
Brazil’s first crypto framework, with guidelines for both the daily usage of the assets and brokerages who trade them, was enacted by President Jair Bolsonaro.
Although a formal designation is required, the bill‘s rapporteurs in the lower house and senate — the politicians who make amendments to the initial draft — believe that the central bank would probably be in charge of regulating and supervising the new organization. Crypto companies will have at least six months to adjust.
What does the announcement suggest?
The declaration from Bolsonaro made no mention of which federal agency might be in charge of overseeing cryptocurrency payments. However, just like in the US, Brazil’s Securities and Exchange Commission is responsible for overseeing digital assets that are classified as securities. In addition, as a result of the failure of FTX, the law also includes rules mandating exchanges to discriminate between the user and corporate assets.
Praises received by the new law.
The new regulation was praised by the Brazilian Association of Cryptoeconomics, which represents local businesses in the industry. It was seen as “very essential” for creating “clear norms” and obligations for its corporations.
It may also increase investor security by outlining brokerages’ responsibilities and outlining the necessary routes for investigation and punishment.
