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Brazil cryptocurrency market regulation plan expected by end of year

The pending legislation aims to create a clear legal framework for digital asset operations, which will contribute to increased security and trust.

Date: 2024-05-21 Author: Łukasz Michałek
Brazil cryptocurrency market regulation plan expected by end of year

Brazil’s central bank on Monday unveiled a multi-phase plan to regulate cryptocurrency and virtual asset service providers. It aims to finalize regulatory proposals by the end of this year.

The regulations will establish rules to verify and enforce greater transparency on the potential benefits and risks of these investments, the bank reported. It said it has decided on a phased approach to effectively regulate the domestic market for cryptocurrency services.

“From this point, contributions will be used, and the regulatory proposals will be finalized at the end of 2024,” it said – The bank added.

According to Reuters, the central bank’s latest decision delays the finalization of the process. This is due to Law 2022, which gave the bank the authority to develop these regulations. During a congressional hearing last year, the central bank’s director of regulatory affairs, Otavio Damaso, predicted that the cryptocurrency regulations would be completed by June 2024.

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The bank held a public consultation on the issue in December 2023, which ended in January. It then announced a new public consultation scheduled for the second half of this year.

The central bank told Reuters that the first consultation was aimed at gathering public opinions on the proposed regulations. It also addressed aspects not covered by the 2022 law, such as how virtual asset service providers should segregate their assets.

To address this issue, he explained, the first public consultation required “reasonable involvement of teams.”

The bank is also moving forward with stablecoin regulations , especially those used for payments and currency exchange.

Brazil blocks cryptocurrency donations during elections

In a bid to crack down on cryptocurrencies in campaign financing, Brazilian authorities last week strengthened a ban on cryptocurrency donations to political parties and candidates.

The electoral court defended its ban, stressing the need for transparency and traceability in campaign financing. It stated that it is committed to protecting elections “from irregular or illegal practices.”

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Łukasz Michałek
Łukasz Michałek
Founder of the rapidly developing cryptocurrency channel "Biblia Kryptowalut" on YouTube. He also co-creates the Arena Trading group with Marek. Łukasz is fascinated and passionate about blockchain technology and cryptocurrencies, which constitute the central element of his activity in the cryptocurrency industry.
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