Crypto regulation proposal in Brazil will be revealed at the end of the year

The Central Bank of Brazil postponed the cryptocurrency regulation proposal until the end of the year. Meanwhile, a second consultation will be held to take into account civil society and the recommendations of the international community

The Central Bank of Brazil indicated recently that the proposed regulation for the use of cryptocurrencies and the operation of service providers will be known by the end of 2024.

Last year, in his appearance before Congress, the bank’s regulatory director, Otavio Damaso, had indicated that the regulation would be completed in June 2024. However, with the recent decision, all the work that had been carried out since 2022 was delayed and which had been consolidated in 2023 with the adoption of the Legal Framework for Cryptoassets.

With this measure, the Central Bank of Brazil adopts a gradual approach to the application of regulations on cryptocurrency trading and service providers, with the possibility of “adapting and responding to the rapidly evolving cryptocurrency market, while ensuring that regulatory measures are solid and comprehensive,” according to the Binance portal.

The regulatory body seeks robust regulations that provide security and confidence to the crypto market in Brazil, in addition to “protecting investors in this type of assets and demanding transparency about the risks associated with investing in cryptocurrencies,” Swissinfo reports.

In the second half of the year, the Central Bank will carry out a new consultation that includes the participation of civil society on the issue of regulation. Likewise, “it will take into account the proposals of international organizations and will have the support of the Brazilian Securities Commission when it comes to specific virtual assets that affect its powers.”

Key market aspects such as anti-money laundering and terrorist financing laws will be evaluated.


Source: swissinfo

(Reference image source: Ewan Kennedy in Unsplash)

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