Brazil leads crypto regulation in Latin America

The cryptocurrency exchange CryptoMKT has highlighted the work of the Central Bank of Brazil in crypto regulation, making the country a leader in Latin America.

According to the platform, the South American country follows international standards regarding cryptocurrency regulation, with an approach focused on transparency and participation.

The BCB “seeks to establish clear rules for the legal and accounting treatment of digital assets, including key aspects such as staking, airdrops, and fair value valuation.”

Denise Cinelli, COO of CryptoMKT, has noted that the country sets a precedent that could be evaluated by other nations, since “regulatory clarity is essential to protect users, but also to attract investment and drive innovation.”

The model Brazil is following is based on three essential pillars:

• First: the accounting recognition of staking and airdrops, two mechanisms that are frequently underregulated or poorly recorded in the accounting books of many companies.
• Second: valuation based on the fair value criterion, which would allow for estimating the real market value of digital assets and promote more accurate and comparable accounting practices.
• Third: financial disclosure requirements to improve the quality of information reported by companies linked to the crypto world.

Another determining aspect stands out in this process: citizen participation. The Central Bank is implementing this through a public consultation among exchanges, fintechs, banking institutions, developers, and interested citizens, with the goal of “jointly building an applicable, inclusive, and effective regulatory framework.”

The premise is not only to regulate, but to do so by listening to the participants in the country’s crypto sector. In this regard, Cinelli stated: “Regulation built with a vision for the future and active participation of the ecosystem is the right path. This type of progress builds confidence and accelerates the adoption of cryptocurrencies as a real tool for inclusion and financial freedom.”

M.Pino

Source: diariobitcoin

(Reference image source: Kanchanara on Unsplash)

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