Brazilian President Luiz Inácio Lula da Silva signed a law aimed at regulating the central bank’s crypto companies.
Brazil has been one of the countries that has stepped in for crypto regulations. With the law signed by the president, registered crypto companies in Brazil will be subject to central bank regulations.
Brazilian President Luiz Inácio Approves A Law That The Central Bank Will Regulate Crypto Companies
The decree signed by the head of state gives the central bank the power to regulate and supervise virtual asset service providers, while ensuring that many token projects classified by the securities regulator, the Comissão de Valores Mobiliários (CVM), continue to be traded.
This law aims to establish a legal framework for cryptocurrencies under a law passed in December 2022. The decree authorizes the Central Bank of Brazil to regulate and supervise virtual asset service providers, while allowing CVM to maintain supervision of many token projects that it classifies as securities. The decree will go into effect on June 20 and includes certain regulations without affecting laws on consumer protection and financial crimes.
Brazil is one of the largest markets in South America and aims to establish a viable regulatory framework for crypto trading. Crypto exchanges such as Mercado Bitcoin operate in the country and there are licensed foreign payment providers such as Cryptocom and Bitso. Additionally, US crypto exchange Coinbase has announced plans to partner with local firms to provide services to users in Brazil.
