- The Central Bank of Brazil will regulate and supervise virtual asset service providers
- The decree will come into force on June 20
Brazilian President Luiz Inacio Lula da Silva signed a draft law on the role of the Central Bank of the country in regulating the cryptocurrency sector. The Order provides the Central Bank with the authority to regulate and control service providers in the field of virtual assets. In addition, it ensures that the national securities regulator will continue to regulate many tokens.
Decree No. 11.563 was signed on 14 June. It allows the Central Bank of Brazil to regulate and control virtual asset service providers. According to the documents, many token projects that are considered securities will continue to fall under the jurisdiction of the Comissão de Valores Mobiliários (CVM), the Brazilian equivalent of the US Securities and Exchange Commission.
The CVM aims to create a more tailored regulatory framework that will take into account the volume of cryptocurrency trading in the country as well as the markets. According to the announcement, the decree will come into force on June 20 and will not conflict with laws relating to consumer protection and financial crime.
Recently, Brazil has become an increasingly cryptocurrency-friendly country. It has one of the largest markets in South America and has licensed foreign payment providers such as Crypto.com and Bitso. In March, the American crypto exchange Coinbase announced a partnership with local companies to provide the possibility of buying cryptocurrencies for residents of Brazil.