The Brazilian agency claimed that after previously refusing to regulate the area, it now intends to work on the concept of virtual assets.
According to reports, the Brazilian Securities and Exchange Commission is working to reform the nation’s legislative system to better regulate cryptocurrencies.
One big issue, according to the local media, is that the proposed measure does not appear to treat tokens as digital assets or securities, and as a result, they would not be subject to SEC regulation. Following the appointment of a new board and the growing importance of the crypto sector in the nation’s financial services, the SEC of the country has changed its position.
Brazilian legislators have been working on cryptocurrency laws since 2015, but the Senate didn’t pass the final bill until April 2022. The legislation will be delivered to Brazil’s president for his signature after Congress completes its final adjustments.
A virtual asset, as defined in the wording that was adopted, is a digital representation of value that can be electronically traded or transferred and utilized for payment or investment reasons. Additionally, it establishes techniques to stop money laundering and provides guidelines for best practices for Know Your Customer (KYC) operations. In accordance with the bill, nonfungible tokens (NFTs) are also not regarded as securities, but most other tokens are still up for debate.
A SEC employee from Brazil wrote the following to a neighborhood newspaper:
“The mentioned bill needs specific improvements, including the definition of virtual assets, prior authorization requirements, and the approval of business combinations in redundant roles with the Cade [Brazilian Federal Trade Commission].”
Legislators said they think that sending the measure to the president so that he can decide by executive order what functions the SEC and Brazilian Central Bank should have in approving initial coin offerings and regulating the market. Some lawmakers feel that this action creates legal confusion and that a completely new bill needs to be introduced. Another cryptocurrency-related bill was sent to the Brazilian Congress in June. If accepted, the plan would allow for the use of cryptocurrencies as a form of payment while preventing judicial seizure of private keys. The committee of legislators is now reviewing a draft of the law.