Brazilian Government Prepares a New Decree To Clarify Cryptocurrency Rules
The Brazilian government is working to release a decree that will fill in the gaps left by the recent approval of the cryptocurrency legislation. The document, which was prepared by the Ministry of Finance will outline the areas of supervision and responsibilities for both the Central Bank of Brazil (CBM) and the national securities regulator (CVM).
Brazilian Government Issues New Crypto Regulation Decree
Brazilian officials are working to expand the cryptocurrency rules set forth by the cryptocurrency law that was approved Dec. 21 by the outgoing president Jair Bolsonaro. Local media reports that the Ministry of Finance is currently working on a decree that will address the gaps left in the law’s general formulation. Before it can be sanctioned, the document will need to be reviewed and approved by Luis Inacio “Lula” Da Silva’s executive aides.
Gabriel Galipolo (executive secretary of the Ministry of Finance) and Marcos Pinto (secretary of economic reforms), are preparing the document with the assistance of technicians from the Central Bank of Brazil as well as the national securities regulator. This decree will split the responsibility of cryptocurrency oversight between these two institutions. It will give them clear items and market areas they need to address.
The new document will give the Central Bank of Brazil the task of overseeing and organizing the behavior of cryptocurrency exchanges in Brazil. It will also focus on ensuring that they comply with the rules set forth in the law. Virtual asset service providers (VASPs), will be subject to regulations similar to those currently in place for banks.
The new definitions will allow the Brazilian securities regulator to keep an eye on tokenized securities and determine if each asset is a security. This task will be performed by a new division, the superintendence for digital assets.
This is consistent with statements made by Expedito Netto (an ex-rapporteur of the law) regarding the future and revisions that Luis Inacio “Lula” Da Silva, the current president, made back in January.
The government will also try to include the topic of asset segregation in this decree. This subject would require exchanges to segregate their assets from those belonging to their users. It was originally proposed while the bill was still being discussed. It was not included in the final law document because of disagreements in Congress.
What do you think of the new decree the Brazilian government will issue in order to amend the recently approved cryptocurrency law. Leave a comment below.