Brazil Empowers Central Bank To Regulate Cryptocurrency Firms
Brazilian President Luiz Inácio Lula da Silva has signed a new law granting regulatory authority to the country’s central bank over cryptocurrency firms, while ensuring that tokens classified as securities remain under the supervision of the securities regulator. This move signifies Brazil’s commitment to establishing a regulatory framework for its growing crypto industry.
Brazilian President Luiz Inácio Lula da Silva has signed a new law empowering the country's central bank to regulate and supervise cryptocurrency firmshttps://t.co/yMoYGxAsv0
— crypto.news (@itscrypto_news) June 14, 2023
Regulating Digital Asset Businesses
Under the decree signed by President Lula, Brazil’s Central Bank has been empowered to regulate and supervise businesses operating in the digital asset space, including bitcoin trading platforms, centralized crypto exchanges, and wallet providers. The objective is to enhance consumer protection and mitigate the risks associated with digital assets.
The decree also clarifies that the Comissão de Valores Mobiliários (CVM), Brazil’s securities regulator, will retain oversight of token projects categorized as securities. This regulatory approach recognizes the unique nature of cryptocurrencies, fostering innovation while safeguarding investor funds.
This development coincides with Brazil’s upcoming launch of its central bank digital currency (CBDC). Collaborating with Visa and Mastercard, Brazil’s central bank aims to test the functionality of its CBDC platform, aligning with the global trend of exploring central bank-backed digital currencies.
Global Crypto Regulation
Similar initiatives are taking shape worldwide, as countries work on their regulatory frameworks for digital assets. For instance, Ukraine has signaled plans to adopt the European Union’s Markets in Crypto-assets (MiCA) regulation, aimed at enhancing transparency and authorization for crypto issuance and trading.
However, in the United States, regulatory uncertainties continue to cast a shadow on the web3 ecosystem, with SEC chair Gary Gensler cracking down on market participants. In response, lawmakers have introduced the SEC Stabilization Act, seeking to restructure the agency and remove Gensler from his position.
The years ahead are expected to witness significant developments in global crypto regulation. It is anticipated that investors, policymakers, and regulators will collaborate to create frameworks that foster a safer and more inclusive crypto economy.
