Regulation
Brazil Central Bank Plans Year-End Proposal for Crypto Regulation
BRASILIA (Reuters) – Brazil’s central bank said on Monday it had decided to divide the regulatory process for cryptoassets and virtual asset service providers into phases, with regulatory proposals expected by the end of this year.
The move effectively delays the completion of the process following a 2022 law on the subject, which paved the way for further regulation by the central bank.
At a congressional hearing last year, the bank’s chief regulatory officer, Otavio Damaso, projected the regulations would be completed by June 2024.
After launching a public consultation on the subject in December 2023, which concluded in January, the central bank announced that it would now open a new consultation in the second half of this year.
The central bank told Reuters the first public consultation aimed to gather feedback from the company, also addressing issues not covered by the 2022 law, such as asset segregation of virtual asset service providers.
This requires “reasonable dedication on the part of the teams involved in the regulatory work”, he specifies, adding that the diversity of activities carried out by entities in the virtual assets sector and the various structures of these entities required this effort. prior.
“The second public consultation, now focused on the regulatory texts, aims to use the first contributions to, once again with broad support from society, establish a solid regulatory framework,” the central bank said.
(Reporting by Marcela Ayres in Brasilia, editing by Gabriel Araujo and Matthew Lewis)