Brazilian Government Prepares New Decree Clarifying Cryptocurrency Rules – Regulation
The Brazilian government is preparing to release a decree to fill in the gaps left by the recent passage of the cryptocurrency law. The document, prepared by the Ministry of Finance, defines the areas of supervision and responsibilities of the Central Bank of Brazil and the National Securities Commission (CVM).
Brazilian Government Issues New Crypto Regulatory Decree
Members of the Brazilian government are working to expand cryptocurrency rules established by the cryptocurrency law sanctioned by outgoing President Jair Bolsonaro on Dec. 21. According to reports from local media, the Treasury Department is working on an ordinance to fill the gaps that the general wording of the law has not addressed. The document must be reviewed by Executive Assistants to President Luis Inacio “Lula” Da Silva before it is sanctioned.
The document is being prepared by Gabriel Galipolo, Executive Secretary of the Treasury, and Secretary of Economic Reforms Marcos Pinto, with the help of technicians from Brazil’s Central Bank and National Securities Commission. This decree will split the responsibilities of cryptocurrency oversight between these two institutions, giving them clear points and market areas to take care of.
Incoming Dispositions
The new document will assign the Central Bank of Brazil the task of organizing and overseeing the behavior of cryptocurrency exchanges in Brazil, with a particular focus on verifying proper compliance with the rules outlined in the law. Virtual Asset Service Providers (VASPs) will receive similar regulations as banks currently have.
Meanwhile, the new definitions would put Brazil’s securities regulator above tokenized securities and analyze whether each tokenized asset constitutes a security. The organization will set up a new department dedicated to this task, the oversight of digital assets.
The move comes in line with statements by Expedito Netto, former rapporteur on the law, on the future of the law and the revisions announced back in January by the government of Luis Inacio “Lula” Da Silva, the current President of Brazil.
The issue of asset segregation will be another important issue that the government will seek to include in this decree. The issue of exchanges having to separate their assets from their users’ assets was suggested while the bill was still being debated. However, due to disagreements in Congress, it was not included in the final legislative document.
What do you think of the new decree that the Brazilian government will issue to change the recently passed cryptocurrency law? Tell us in the comment section below.
photo credit: Shutterstock, Pixabay, Wiki Commons, Eduardo Rocha Paz / Shutterstock.com
(function(d, s, id) {
var js, fjs = d.getElementsByTagName(s)[0];
if (d.getElementById(id)) return;
js = d.createElement(s); js.id = id;
js.src=”
fjs.parentNode.insertBefore(js, fjs);
}(document, ‘script’, ‘facebook-jssdk’));
Source: Crypto News Deutsch
