The Brazilian government is preparing to issue a decree to fill the void left by the recent approval of the cryptocurrency law. The document, prepared by the Ministry of Finance, will establish areas of oversight and responsibility for the Brazilian Central Bank and the state securities regulator (CVM).
Brazilian government issues new crypto regulatory decree
Members of the Brazilian government are working to extend the cryptocurrency rules established by the Cryptocurrency Law sanctioned on December 21 by outgoing President Jair Bolsonaro. According toreportsfrom the field, the Treasury Department is working on a decree to fill the void left unaddressed by the general formulation of the law. The document must be reviewed by a senior aide to President Luis Inacio “Lula” da Silva before it can be sanctioned.
The document is being prepared by Gabriel Garipolo, Secretary General of the Ministry of Finance, and Marcos Pinto, Director General for Economic Reforms, with the help of technicians from the Central Bank of Brazil and the National Securities Supervisory Authority. The decree will split the responsibility for cryptocurrency oversight between these two institutions, giving them a clear item and market area.
Incoming Dispositions
The new document gives the Brazilian Central Bank the task of organizing and supervising the actions of cryptocurrency exchanges in Brazil, with particular emphasis on ensuring that they properly comply with the rules stated in the law. Virtual Asset Service Providers (VASPs) will be subject to the same regulations that banks currently have.
Meanwhile, under the new definition, the Brazilian securities regulator will be at the top of tokenized securities and will analyze whether each tokenized asset constitutes a security. The organization will establish a new department dedicated to this task, the Digital Asset Oversight.
The move is in line with statements made by Expedito Netto, the law’s former rapporteur, regarding the future of the law and the revisions announced in January by the government of current Brazilian President Luis Inacio “Lula” Da Silva.
The issue of asset segregation will also be an important theme that the government intends to include in this decree. This theme, meaning that exchanges would have to separate assets from their user-owned assets, was proposed when the bill was still being debated. However, disagreements in Congress prevented it from becoming part of the final legal text.
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