Brazilian SEC seeks to change its role in cryptocurrency regulation

The Brazilian Securities and Trade Fee is reportedly pursuing adjustments within the nation’s authorized framework with regard to its regulation of cryptocurrencies. 

In response to native media, one main concern is that the invoice in query doesn’t seem to contemplate tokens as digital belongings or securities — and so they subsequently would not fall below 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 within the nation’s monetary providers.

Brazilian lawmakers have been engaged on rules for cryptocurrencies since 2015, however the Senate solely approved the ultimate model of a invoice in April 2022. As soon as Brazil’s Congress finishes its remaining revisions, the invoice will probably be despatched to the nation’s president, who will signal it into legislation.

As described within the permitted textual content, a digital asset is a digital illustration of worth that may be traded or transferred electronically, and used for fee or funding functions. As well as, it outlines the perfect practices for Know Your Buyer (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 midst of discussions about whether or not they’re.

In a observe to a neighborhood newspaper, a consultant from Brazil’s SEC stated:

“The talked about invoice wants particular enhancements, together with the definition of digital belongings, prior authorization necessities, and the approval of enterprise combos in redundant roles with the Cade [Brazilian Federal Trade Commission].”

Legislators stated they consider {that a} potential decision could possibly be to ship the invoice to the president to find out through decree what roles the Brazilian Central Financial institution and the SEC ought to play in authorizing preliminary coin choices and regulating the market. Some legislators take into account this measure a authorized uncertainty, arguing that a wholly new invoice needs to be launched. In June, one other invoice associated to cryptocurrencies was submitted to the Brazilian Congress. If permitted, the proposal would grant the correct to make use of cryptocurrency as a way of fee, whereas defending non-public keys from being taken by the courts. A draft of the legislation is at present ready to be reviewed by the legislators’ committee.

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