The Brazilian Securities and Exchange Commission is reportedly pursuing modifications in the nation’s authorized framework with regard to its regulation of cryptocurrencies.
According to native media, one main concern is that the invoice in query doesn’t seem to contemplate tokens as digital belongings or securities — they usually due to this fact would not fall beneath SEC regulation. The up to date place of the nation’s SEC follows the appointment of a brand new board and the elevated relevance of the crypto sector in the nation’s monetary providers.
Brazilian lawmakers have been engaged on laws for cryptocurrencies since 2015, however the Senate solely authorized the ultimate model of a invoice in April 2022. Once Brazil’s Congress finishes its last revisions, the invoice can be despatched to the nation’s president, who will signal it into regulation.
As described in the authorized textual content, a digital asset is a digital illustration of worth that may be traded or transferred electronically, and used for cost or funding functions. In addition, it outlines the most effective practices for Know Your Customer (KYC) procedures and units up strategies to forestall cash laundering. Per the invoice, nonfungible tokens (NFTs) are additionally not thought of securities, whereas most different tokens are in the center of discussions about whether or not they’re.
In a be aware to a neighborhood newspaper, a consultant from Brazil’s SEC mentioned:
“The mentioned bill needs specific improvements, including the definition of virtual assets, prior authorization requirements, and the approval of business combinations in redundant roles with the Cade [Brazilian Federal Trade Commission].”
Legislators mentioned they consider {that a} doable decision may very well be to ship the invoice to the president to decide by way of decree what roles the Brazilian Central Bank and the SEC ought to play in authorizing preliminary coin choices and regulating the market. Some legislators contemplate this measure a authorized uncertainty, arguing that a completely new invoice needs to be launched. In June, one other invoice associated to cryptocurrencies was submitted to the Brazilian Congress. If authorized, the proposal would grant the precise to use cryptocurrency as a method of cost, whereas defending non-public keys from being taken by the courts. A draft of the regulation is at the moment ready to be reviewed by the legislators’ committee.
