Brazil’s President signs law to regulate crypto firms

Brazil’s President signs law to regulate crypto firms

The central bank is authorized to supervise and regulate virtual asset services providers. It also ensures that the country’s securities regulator continues to deal with many tokens.

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The Brazilian president Luiz inacio Lula da Silveira, also known as Lula to many, signed a law clarifying the role of the central bank and securities regulators with regard to cryptocurrency.

In a June 14 notice, President Lula signed government decree No. In a June 14 notice, President Lula a href=”https://www.scribd.com/document/652920517/Decreto-N%C2%BA-11-563-De-13-deJunho-2023″ rel=”noopener nofollow” target=”_blank>signed/a> government decree No. The legislation allows the Central Bank of Brazil (CBBR) to supervise and regulate virtual asset service providers. It also ensures that many token projects which qualify as securities continue to be under the jurisdiction of the Comissao de Valores Mobiliarios or CVM, Brazil’s equivalent of United States Securities and Exchange Commission.

Cointelegraph Brazil reported that the CVM was seeking to create a more responsive regulatory framework to the volume and nature of crypto-trades in Brazil as well as on emerging markets. The notice states that the decree will take effect on 20 June without affecting certain laws related to consumer protection or financial crime.

The announcement came as Brazil’s central banks began a pilot project to create a CBDC (central bank digital currency) in collaboration with Visa and Mastercard, two major payment firms. The bank will test its privacy and programmability features in preparation for a possible rollout of digital reals.

Related: Brazilian crypto-exchange Mercado Bitcoin licensed to be a payment provider: Report

Brazil has one of the biggest crypto markets in South America. It also licenses foreign payment providers like Crypto.com and Bitso. In March, U.S. cryptocurrency exchange Coinbase announced that it had collaborated with local firms in order to offer crypto purchases to Brazilian residents.

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