The Brazilian Securities and Exchange Commission reportedly Pursuit Changes to national legal frameworks regarding regulation of cryptocurrencies.
According to local media, the bill in question does not appear to consider tokens to be digital assets or securities, so the lack of SEC regulation is one of the major concerns. The country’s SEC’s latest position follows the appointment of a new board and the increasing relevance of the crypto sector in the country’s financial services.
Brazilian lawmakers have been working to regulate cryptocurrencies since 2015, but only the Senate approved The final version of the bill will be submitted in April 2022. Once the Brazilian Congress completes the final amendments, the bill will be sent to the country’s president, who will sign the bill.
As explained in the approved text, a virtual asset is a digital representation of value that can be electronically traded or transferred and used for payment or investment purposes. In addition, it outlines best practices for Know Your Customer (KYC) procedures and sets out ways to prevent money laundering. According to the bill, non-fungible tokens (NFTs) are also not considered securities, although most other tokens are under debate as to whether they are securities.
In a memo to a local newspaper, a Brazilian SEC representative said:
“The bill referred to requires certain improvements, including the definition of virtual assets, pre-approval requirements, and approval of business combinations in redundant roles with Cade. [Brazilian Federal Trade Commission].”
Legislators say a possible solution is to send a bill to the president to determine what role the Central Bank of Brazil and the SEC should play in approving new coin issuances and regulating the market. He said that he believes that Some legislators view the measure as legal uncertainty, arguing that an entirely new bill should be introduced. Another bill related to cryptocurrencies was introduced in June. submitted to the Brazilian Congress. If approved, the proposal would grant the right to use cryptocurrencies as a means of payment while preventing private keys from being taken to court. The bill is currently awaiting review by the legislative committee.