The Brazilian Securities Commission has decided that it is necessary to make a number of changes concerning the regulation of virtual assets. Earlier, the Commission stated that they were not going to change anything in the legal sphere concerning cryptocurrencies. But now the situation has changed.
According to the local media, the main problem of the bills under consideration is that tokens were not considered as virtual assets.
Based on this, the Commission could not in any way deal with their regulation. As you know, in Brazil, the parliament has been working on the regulation of virtual assets for more than 7 years. The Senate approved the latest version of the bill only this spring.
Now it is under consideration in the country’s Congress, and only after some edits are made, it will be sent to the head of state. He must sign the law concerning the regulation of virtual assets.
Why did the Commission decide to change its position and get involved in the process of regulating virtual assets
The financial sector of the state is being transformed, and cryptocurrencies are beginning to play an increasingly important role in it. The new Board of the Commission believes that it is necessary not to stand aside, but to actively participate in the regulation of cryptocurrencies. In the bill being considered in Congress, tokens can be used as a means of payment or an investment asset. Customer verification procedures are provided, and methods are established to prevent fraudulent actions with cryptocurrencies. There are many useful points in the bill, which the head of state is to sign soon. But, according to the Commission, some improvements need to be made to it.
They relate to a more precise definition of virtual coins, as well as requirements related to business activities in the digital economy. The Commission also believes that it is necessary to more clearly define the roles of the Central Bank of Brazil and the SEC, their areas of responsibility in this area.
A number of parliamentarians have already addressed the Commission, who pointed out some legal uncertainty in this matter. They even offered to withdraw the existing bill and write a completely new one. However, the other parliamentarians did not support this idea, since the process of considering a new bill would take more than a year.
Therefore, the Commission proposes to make point changes to the almost ready-made law so that its proposals for improving the regulation of cryptocurrencies are taken into account.
How will the bill on the regulation of cryptocurrencies change Brazil’s financial system if signed by the president
Brazil, like many other countries, is trying to balance its financial system, which has suffered from a protracted crisis. The country needs new investments, companies that would create more jobs. In this regard, the Arab states are an example for Brazil, where the most comfortable conditions for activity have been created for cryptocurrency exchanges and startups. The country’s authorities want the financial sector associated with cryptocurrencies to develop and attract more funds from companies.
At the same time, the government and the regulator believe that appropriate legislation is needed that would simultaneously help in the development of the digital economy and prevent attempts of fraudulent actions and deception of investors.
Most likely, by the end of this year, the head of state will sign the bill that is currently in Congress. If the comments of the Securities Commission are taken into account, then Brazil can get very progressive legislation regarding the regulation of virtual assets.
